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Quebec-based Fiera Capital closes purchase of Clearwater Capital, hikes dividend

Montreal, Quebec-based asset management company Fiera Capital Corp. has completed its acquisition of Clearwater Capital Partners LLC, an Asia focused credit and special situations investment firm headquartered in Hong Kong.

The aggregate consideration paid at closing, subject to adjustments, was approximately US$14.9 million.

In addition, during the second quarter, Fiery Capital began offering the City National Rochdale Emerging Markets Fund, which it acquired, as the Fiera Capital Emerging Markets Fund. Anindya Chatterjee, senior vice president and senior portfolio manager, continues to lead the investment team post deal closing.

Fiera Capital reported second-quarter net loss attributable to the company's shareholders of C$2.1 million, or 2 Canadian cents loss per share. A year ago, the company reported net earnings of C$877,000, or 1 cent per share.

The recent quarter's net loss resulted mainly from the increase in charges in the accretion and change in fair value of the purchase price obligations related to the City National Rochdale Emerging Markets Fund. Fiera Capital also attributed the net loss to the rise in debt interest and income taxes, partially offset by an improvement in operating margins.

Adjusted net earnings attributable to the company's shareholders for the recent quarter amounted to C$23.8 million, or 26 cents per share, compared to C$25.1 million, or 30 cents per share for the same period in 2017.

Adjusted net earnings for the recent quarter includes the net loss, adjusted for C$17.6 million of depreciation of property and equipment, amortization of intangible assets and share-based compensation, as well as C$8.3 million of acquisition and restructuring, integration and other costs, net of income taxes, and a charge related to the accretion and change in fair value of purchase price obligations and the accretion on effective interest on convertible bonds.

The company's board declared a dividend of 20 cents per class A subordinate voting share and class B special voting share, which is a cent higher than the previous quarter's dividend. The dividend is payable on Sept. 19 to shareholders of record as of Aug. 22.