HGC Investment Management

What HGC Investment Management does

HGC Investment Management is an employee-owned Toronto-based alternative asset manager founded in June 2013. It manages The HGC Fund, an event-driven fund focused on North American small- and mid-cap merger situations, employing Traditional Merger Arbitrage and SPAC Arbitrage strategies. The firm also runs HGC Credit Opportunities Fund LP, extending into a complementary credit strategy.

The fund targets approximately $400M in AUM and is offered through two Canadian fund structures: an LP and a Trust wrapper. Units are distributed via Fundserv (with a $25,000 minimum) and through registered accounts (RRSP, RESP, RRIF, LIRA, TFSA). The investor base is Canadian accredited investors and advisor-sold retail; the management team is small (8-11 employees) and includes Sean Kallir (CEO), Brett Lindros (President), Stuart Grant (CCO/COO), Nick Santoro (VP Client Relations), David Heden (Founder), and Donald K. Charter (Chairman).

The revenue model is a standard hedge fund fee construct: 1.5% management on F-class and 2% on A-class (with a 50 bps trailer), plus a 20% performance fee subject to a high-water mark. Institutional service providers include CIBC, BMO, TD, and Fidelity as prime brokers, KPMG as auditor, Apex as fund administrator, and Davies as legal counsel. The firm has won seven Canadian Hedge Fund Awards between 2018 and 2025 and reports positive calendar-year returns in every year since inception, with volatility under 7% and market correlation below 0.3.

Name

HGC Investment Management

Legal name

HGC Investment Management Inc.

Website

https://hgcinvest.com

Company type

Private

Founded year

2013

Operating status

Operating

Headcount range

11–50 employees

Short description

HGC Investment Management is a Toronto-based, employee-owned alternative asset manager founded in 2013 that runs event-driven merger arbitrage and SPAC arbitrage strategies for Canadian accredited investors via The HGC Fund.

Ownership category

akta.pro rank

Product category

Alternative Asset Management

NAICS

Portfolio Management and Investment Advice (52394), Portfolio Management and Investment Advice (523940), Other Investment Pools and Funds (5259)

SIC

Investment Advice (6282)

akta.pro primary industry

Multi-Strategy — Equity L/S + Sector Specialists (FSAHAFAD)

Keywords

• Merger arbitrage fund
• Event-driven investing
• Alternative asset management
• SPAC arbitrage
• Hedge fund management

Headquarters

HQ city

Toronto

HQ country

Canada

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Management Fees: The fund charges management fees of 1.5% for F Class (Fee-based) units and 2% for A Class (50 bps trailer) units. This is a recurring fee based on assets under management.
2. Performance/Profit Allocation: 20% profit allocation with a perpetual high-water mark, aligning manager and investor interests. Performance fees are earned on positive returns above the high-water mark.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels2 records

Core offering

HGC Investment Management manages The HGC Fund, an event-driven hedge fund strategy that pursues traditional merger arbitrage and Special Purpose Acquisition Corp (SPAC) arbitrage opportunities in North American small and mid-cap companies. The fund is offered in two structures — The HGC Fund LP and The HGC Fund Trust — to accredited investors with a minimum subscription of $25,000 via Fundserv, charging management fees of 1.5% (F Class) or 2% (A Class) plus a 20% performance allocation with a perpetual high-water mark.

Product overview

HGC Investment Management offers a single core investment product: The HGC Fund, which operates in two structures - The HGC Fund LP (limited partnership) and The HGC Fund Trust (for registered accounts). Both structures pursue the same event-driven merger arbitrage strategy focused on North American small and mid-cap companies, including both traditional merger arbitrage and SPAC arbitrage. The fund has achieved consecutive positive returns since its June 2013 inception and manages approximately $400 million in assets.

Differentiator

Problem solved

Functional benefit

Brands

• The HGC Fund: An actively managed event-driven strategy focused on arbitrage with assets of $400 million that specializes in the North American small and mid-cap market. Strategies include Traditional Merger Arbitrage and Special Purpose Acquisition Corp Arbitrage.
• The HGC Fund LP
• The HGC Fund Trust
• HGC Credit Opportunities Fund LP

Products and services

• The HGC Fund LP Limited partnership fund vehicle of The HGC Fund, an actively managed event-driven merger arbitrage and SPAC arbitrage strategy with $400 million in AUM, targeting North American small and mid-cap companies. Available to accredited investors with a minimum subscription of $25,000 via Fundserv, charging 1.5% (F Class) or 2% (A Class) management fees plus a 20% performance allocation with a perpetual high-water mark. Offers monthly subscriptions and a 15-day redemption notice.
• The HGC Fund Trust Trust-structured version of The HGC Fund pursuing the same event-driven merger arbitrage and SPAC arbitrage strategy, eligible for RRSP, RESP, RRIF, LIRA and TFSA registered accounts in Canada, expanding distribution to retail investors who hold registered accounts.
• HGC Credit Opportunities Fund LP

Quantifiable outcome

• Low volatility <7%
• +3 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Partnerships

Three partnerships are on record, tiered core.

• KPMG LLPcoreOthersAuditor for the HGC Fund, providing independent financial statement audits.
• ApexcoreOthersFund administrator for the HGC Fund, providing back-office operations including net asset value calculations, investor reporting, and transaction processing.
• DaviescoreOthersLegal advisors to the HGC Fund, providing legal counsel on fund documentation, regulatory compliance, and corporate matters.

Scale indicators5 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• K2 Investment Management: Toronto-based event-driven and merger arbitrage hedge fund where HGC founder David Heden was previously a Managing Partner. Direct peer operating a closely comparable strategy in the same geography and product niche.
• Picton Mahoney Asset Management: Toronto-based alternative asset manager running multiple hedge fund strategies including event-driven and arbitrage mandates, serving Canadian accredited investors via retail platforms — a closely comparable business model and distribution footprint.
• Arrow Capital Management: Toronto-based alternative asset manager focused on event-driven and merger arbitrage strategies in North America. Directly comparable strategy, geography, and investor target.
• FrontFour Capital Group: Canadian event-driven and special-situations hedge fund manager with a focus on small/mid-cap North American opportunities — closely aligned strategy and market segment.
• PenderFund Capital Management: Vancouver-based alternative asset manager offering hedge fund and private credit strategies to Canadian investors via Fundserv and registered accounts — comparable Canadian alt-asset distribution model.

Broad incumbents

• Sprott Inc. Toronto-headquartered alternative asset manager with broad mandates across hedge funds, private equity, and precious metals. Larger incumbent offering alternative strategies that overlap with HGC's event-driven focus.
• Lazard Asset Management: Global asset manager with established merger arbitrage and event-driven capabilities within a much broader multi-asset platform. Comparable strategy at significantly larger scale.
• Sculptor Capital Management: Large multi-strategy hedge fund platform with significant event-driven and merger arbitrage exposure. Comparable strategy within a broader diversified alternatives franchise.
• Brookfield Asset Management: Toronto-headquartered global alternative asset manager; while not a direct event-driven competitor, it is the dominant Canadian alternative asset incumbent shaping the competitive and capital-allocation landscape.

Regional players

• 3iq Corp: Toronto-based alternative investment manager offering crypto and alternative strategies to Canadian retail via Fundserv and registered accounts — comparable Canadian retail alt-distribution footprint with adjacent strategy mix.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/hgc-investment-management

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about HGC Investment Management