Sprott announces letter of intent for the acquisition of Flatiron Capital Management Partners

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, June 6, 2012 /CNW/ - Sprott Inc. (TSX: SII) (\"Sprott\") today announced the signing of a letter of intent (the \"LOI\")\n reflecting an agreement in principle to acquire Flatiron Capital\n Management Partners (\"Flatiron\"), an alternative investment manager\n specializing in market-neutral strategies. As at the date hereof,\n Flatiron has approximately $275 million in assets under management\n (\"AUM\").\n\n\nThe transaction is subject to, among other things, satisfactory results\n of due diligence investigations of Flatiron and the negotiation of\n definitive agreements. The transaction is an arm's length transaction\n and is subject to the approval of all applicable regulatory\n authorities, including the Toronto Stock Exchange, as well as other\n third parties, as necessary. In addition, the transaction remains\n subject to approval by Sprott's board of directors. The parties will seek to close the transaction by the middle of the\n third quarter of 2012.\n\n\n\"We are committed to broadening our investment capabilities by hiring\n best-in-class investment managers and this transaction brings us one of\n Canada's leading convertible bond arbitrage teams,\" said Peter\n Grosskopf, Chief Executive Officer of Sprott. \"We believe the Flatiron\n team and strategies are uniquely qualified to perform well during the\n volatile markets which we expect will persist for some time.  Flatiron\n will provide an ideal complement to our growing suite of specialty\n fixed-income funds, which upon completion of this transaction, will\n represent more than $800 million in AUM.\"\n\n\n\"We are excited to become part of the Sprott organization. Sprott is an\n industry leader with an investment philosophy and outlook that aligns\n closely with ours,\" said Steve Duenkler, Co-Founder of Flatiron.\n\n\n\"We look forward to working with the team at Sprott to develop new\n products and introduce our approach to new investors,\" added Parm\n Kalirai, Co-Founder of Flatiron.\n\n\nSince inception in January 2000, the Flatiron Market Neutral LP and its\n predecessor managed account, the \"Flatiron Fund\", managed by Mr.\n Duenkler and Mr. Kalirai, have generated average annual returns of\n 9.54%* net of fees and expenses, compared to 5.4%* for the S&P/TSX\n Composite Index over the same period. The investment strategy of ...

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