AGF Increasing Its Stake in Multi-Strategy Manager New Holland Capital

Research evidence excerpt

AGF Increasing Its Stake in Multi-Strategy Manager New Holland Capital

Financial Services - Diversified Financials

AGF Management Ltd.

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

May 26, 2026

Price: C$17.01 (05/25/2026) AGF Increasing Its Stake in Multi-Strategy

Price Target: C$19.00 Manager New Holland Capital

BUY (1)

ESG SCORE: 68/100

Graham Ryding, CFA^ THE TD COWEN INSIGHT

416 308 4416

As we expected, AGF is exercising its option (as of May 29, 2026) to increase its ownership

graham.ryding@tdsecurities.com

in NYC based multi-strategy manager New Holland Capital (NHC). AGF's ownership stake

Michael McCue^ will increase to 50% (from 25% currently). The transaction reflects an incremental US$20mm

416 982 8683 investment (in addition to AGF's original US$15mm investment in Feb-2024).

michael.mccue@tdsecurities.com

Key Data Event: Exercise of option rights to increase ownership stake in New Holland Capital (see press

Symbol TSX: AGF.B-T release)

Market Cap C$1.1B

Impact: NEUTRAL

In addition to this incremental $20mm investment, AGF will convert its existing $15mm

convertible note to equity (overall economic interest moves from 25% to 50%). After 2 years

(from May 29, 2026) AGF will have the option to increase its ownership position to 66%. The

implied multiple for this deal is low at 0.9% of AUM or 5.5x 2025 earnings.

The strategic investment in NHC will add to the AUM profile of AGF Capital Partners, AGF's

alternatives platform. AGF's consolidated alternatives AUM will move from C$4.5bln to C

$15.0bln post close; this reflects Instar infrastructure AUM, Kensington Capital PE AUM, SAF

Group private credit AUM, and now C$10.8bln of NHC multi-strategy AUM.

NHC's AUM has had strong growth. AUM has increased by 44% from US$5.4bln at the time