EQB Inc To Acquire Canadian Alternative Asset Manager ACM Advisors Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Etienne Ricard - BMO Capital Markets Equity Research - Analyst : So Chadwick, as you mentioned, Wealth Management is a new vertical for EQB. How do you think about the alignment of interests between EQB and ACM? I mean, in other words, how does the transaction structure to ensure retention of the management team?

Question: Etienne Ricard - BMO Capital Markets Equity Research - Analyst : Yes. Understood. And as part of the deal, you are acquiring a number of commercial lending relationships, what do you see as the potential to grow commercial originations as a result? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 03, 2023 / 1:00PM, EQB.TO - EQB Inc To Acquire Canadian Alternative Asset Manager ACM Advisors

Question: Etienne Ricard - BMO Capital Markets Equity Research - Analyst : And for what geographies and investor profiles is ACM seeing growth opportunities, given you flagged, you have doubled AUM over the past 5 years on the fundraising side.

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : I know you have not -- kind of unable to talk too much on the numbers. But I'm just wondering with the -- you mentioned, I think they ran 4 funds. Are the economics of those funds identical? Or just in general, like are they kind of more like private equity funds where you have (inaudible) earn on the commitment period and then it switches over to a percentage of invested capital? Is there a carriage interest component? Is it fees earned when the capital is committed? Or is it only when deployed that sort of thing?

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : And you talked about the EPS and ROE accretion, I would say, it kind of sounds like incremental for year 1. Beyond year 1, do you expect that level of accretion to increase.

Question: Geoffrey Kwan - RBC Capital Markets, Research Division - Analyst : Okay. And then just the last question. I know you've talked about where you structured, it is being owned outside of the bank there. And I think you've talked a little bit about it. I'm just trying to understand if there's some of these incremental other opportunities, to your point of with their borrower base, if that's potentially something that you could leverage in terms of helping to grow your commercial mortgage origination business and also to whether or not the loans that you originate might be something that could be used in some of their funds.

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Good morning. Just first question is just on the potential equity issuance. I guess maybe walk me through the -- I guess, the decision flow chart as to how you're issuing equity? Is it just like as part of the transaction to the founders? Or what's the decision-making process around issuing equity?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Understood. Looking at the 4 funds that ACM has, are you able to give us a sense as to like where the growth is coming from across the 4 funds? And maybe we look at some of these the smaller funds, like are you seeing more growth in certain duration of asset classes or demand from investors? Like where is that growth coming from across these different funds?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Okay. And lastly, you mentioned Greyston. That I mean they're obviously a larger player, but who would be some of the other competitors for ACM in terms of customer acquisition? Or I guess, asset acquisition fund flows, things like that? Who would they be bumping up against typically?

Question: Jaeme Gloyn - National Bank Financial, Inc., Research Division - Analyst : Yes, thanks. You did mention that most of the growth over the last year has been coming from fundraising and so new money in the door. I was just curious if you're able to provide a little bit more color as to the trend in that fund reasoning? Is it consistent with prior years? Are you seeing a slowdown? Or are they experiencing a slowdown? And then is there anything you can mention around redemptions and pace of redemptions that ACM has seen?