Claymore sold to Guggenheim

Claymore Group and its rapidly growing Canadian subsidiary Claymore Investments, has been sold to Guggenheim Partners, an investment management firm that supervises more than $100 billion in assets.

The acquisition could have reverberations in the Canadian market, where Claymore has been a major player in the ever-expanding exchange-traded fund (ETF) market. The firm has seen a staggering 170% growth since January.

“We are extremely pleased that Claymore Group has entered into this agreement with Guggenheim. Claymore has seen significant growth in our business here in Canada, and the combination with Guggenheim will bring tremendous opportunities for Claymore and our clients,” says Som Seif, president and CEO of Claymore Investments.

Economies of scale is something of growing importance in the Canadian ETF space, particularly in light of large financial services giants such as BMO entering the market.

Seif notes that the size and experience of Guggenheim should give his firm a boost in better execution in terms of research solutions and asset management capabilities.

“This is an important transaction for the asset management industry. When you look at what we’ve done in both the U.S. and Canada, but particularly here in Canada,” Seif tells Advisor.ca. “We have only a certain amount of resources internally. What Guggenheim brings to the table is a significant presence in the institutional world and capabilities in fixed income and private equity in the marketplace, which allow Claymore to be a full-service provider in the product and capabilities it offers.”

Mark Walter, the CEO of Guggenheim, believes that Claymore Group will give it a better foothold in the North American retail asset management business.

“Claymore Group has clearly established itself as a leader within the retail investment space and perfectly complements our already robust institutional investment management capabilities,” he says. The transaction will enhance our retail distribution, product development and marketing prowess, especially among financial advisors.”

Seif doesn’t expect there to be any changes to the way clients deal with his firm, and there have been no discussions about changes to branding. Seif expects the Claymore brand to remain intact for now given its recent success.

“We’ve built a very strong brand in Canada. We currently have more than $2.7 billion in assets under management. [We’re probably] the fastest growing asset management company in Canada,” he says.

The transaction is subject to customary, regulatory and other approvals, and is expected to close at the end of the third quarter this year. Terms of the transaction were not disclosed.

(07/31/09)