Sprott Inc. is selling its mutual fund business — and it didn't have to look far for a buyer. Sprott Asset Management is being sold to the firm's CEO, John Wilson, and its president, James Fox, for $46 million. Wilson and Fox will become co-managing directors of the firm, which has $3 billion in assets under management. 

“We are committed to continuing to provide excellent client service and investment performance, while also expanding our product shelf without compromising our commitment to innovative alternative strategies," Wilson said in a statement Monday afternoon.

Sprott Inc. (SII.TO) said the sale will allow it to focus on its expertise in precious metals, natural resources and real assets. It will also be a leaner organization, with its workforce being halved to approximately 100 workers. Subsequent to the deal, it will have $7.5 billion in assets under management and act as a sub-advisor on ten funds. 

“After careful consideration of many options, we determined that the sale of our Canadian diversified business was in the best interests of our clients, shareholders and employees,” said Sprott Inc. CEO Peter Grosskopf in a statement.

The transaction is expected to close by the fourth quarter of this year, subject to regulatory approvals. Sprott Inc. said it plans to repurchase up to five per cent of its shares once the deal closes.