New York-listed Eaton Vance, an investment management firm, is to acquire a 49 per cent share in Hexavest, a Canadian discretionary investment manager, for an undisclosed cash sum.

Upon completion of the transaction Eaton Vance will assume primary responsibility for Hexavest's new business development outside of Canada. Eaton Vance also plans to launch new mutual funds in the US and offshore markets, sub-advised by Hexavest.

Following the deal, Hexavest's employee-shareholders will continue to control the firm and direct its operations. The firm was founded by six principals in 2004 in Montreal. 

The deal is subject to certain customary closing conditions.

Hexavest serves institutional clients in Canada, the US, Europe and Asia-Pacific, via a “top-down investment style” based on research and quantitative models, it said. It manages around $9.9 billion in assets for over 100 clients, as at 31 May.

Eaton Vance and its affiliates managed $197.5 billion in assets, as of 30 April.