Picton’s potential valuation is unclear because the firm is privately held.Adrien Veczan/The Canadian Press
Fund manager Picton Investments has shopped itself to potential buyers and investors, according to sources, with hopes of securing a partner to buy at least a minority stake in the company.
Based in Toronto, Picton is a well-known money manager on Bay Street, managing $17.4-billion of client assets. The company was co-founded in 2004 by chief executive officer David Picton, an industry veteran, along with five other professionals.
With stock markets trading near all-time highs, Picton has shopped itself to potential investors to see what type of interest it may garner, according to four sources familiar with the plans. The Globe and Mail is not naming its sources because they are not authorized to speak publicly about the auction process.
While an outright sale was considered, Picton has focused on securing a minority investment from an outside party, such as a private equity firm, the sources said.
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Mr. Picton confirmed to The Globe that the company has been looking for outside investors, and had advanced talks with one party that would “certainly help accelerate” his business.
However, that initiative has died down for the time being, he said in an e-mail.
“Our board advised us to run a full process to make sure we were aligning with the best partner possible for the next phase of our buildout,” he said.
“But we will always consider partnerships or ventures that improve the way we run our business.”
If a partner emerges, the capital raised could be used to invest in the business by upgrading risk management and artificial-intelligence tools in order to compete with global hedge funds, according to sources. And the money could also be used to help some of Picton’s equity partners sell some of their stakes.
If a minority investor is secured, Picton could replicate what money manager Wellington-Altus Financial Inc. did in October, 2025, when it sold 25 per cent of itself to U.S.-based private equity firm Kelso & Co. for $388-million.
However, a deal may never materialize and negotiations may break down again in late stages over valuation or other terms.
Picton’s potential valuation is unclear because the firm is privately held. Investments from outsiders are often made based on revenues, and in Picton’s case, these aren’t publicly known.
However, asset managers can also be valued based on a percentage of their assets under management, with top-tier managers often earning 2 per cent to 3 per cent of AUM. Picton currently manages $17.4-billion. At the midpoint of this range, the firm would be worth around $450-million.
It is possible to obtain more than this range if asset managers show asset growth over and above market appreciation, demonstrating they are capable of bringing in what are known as “net inflows” in the industry.
Picton has been shopping itself around owing to a number of factors, according to sources.
To start, stock markets are roaring – even with the Iran war and the resulting energy price shock. It is the prime time for asset managers, which earn revenues as a percentage of the fees they manage, to sell at the highest possible valuation. (Picton also manages fixed-income funds that aren’t directly affected by stock markets.)
A number of Canadian money managers have also sold or secured minority investors over the past year, giving Picton confidence there is buyer interest. In June, 2025, Bank of Montreal bought Burgundy Asset Management Ltd., which managed $27-billion for wealthy families and foundations, for $625-million.
Plus private equity money is flooding the industry. When the purchase closed last year, Abu Dhabi-based Mubadala Capital, the alternative asset arm of Mubadala Investment Co., paid $4.7-billion for CI, Canada’s largest independent asset manager.
As well, new fee disclosure rules, known as CRM3, are set to launch this summer, and Picton is a high-fee manager. One of its largest income funds, with about $1-billion in AUM, charges a 2.31-per-cent management fee.
The new disclosure requirements will now reveal a fund’s full price tag to investors – in dollar amounts – including two fees that have been missing from annual statements: the management expense ratio (MER) – which combines the management fee, operating expenses and taxes, and is charged as a percentage of a fund’s total assets – and the trading expense ratio (TER), which covers the cost of trades executed by the fund manager.
The new requirements may cause significant sticker shock, and cause some clients to cash out for cheaper alternatives, putting more pressure on active money managers.
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While Picton is a reputable firm, bringing in a new investor could also be a double-edged sword – buyers that pay up for asset managers often try to exert outsized control, even if the buyers have minority stakes.
Picton also has to be selective about who it partners with. The company has had long-standing sub-advisory mandates with CI that began in 2005 – after Mr. Picton and Michael Mahoney, who were employed by CI as portfolio managers of the Synergy Funds Group, decided to branch out.
The two principals launched their own company, Picton Mahoney Asset Management, and launched several momentum funds while continuing sub-advisory contracts for CI. Today, the company has 207 employees.
And, like all independent fund companies, a bulk of Picton’s business is sold through the brokerage channels at Canada’s Big Five banks. If a bank were to invest, or eventually buy the firm, rival banks could pull their money from Picton’s funds.
Looking for outside money was not novel for Mr. Picton, who says he has to compete against “the best in the world,” particularly in retaining top talent.
Since inception, the company has been transparent with stakeholders, saying it would entertain outside investors if they brought scale benefits, new capabilities and/or acquisition capital.
“Independent Canadian investment firms must find creative ways to access scale advantages to compete globally in an ever changing landscape,” Mr. Picton said.