Canaccord Genuity Group Inc. is bolstering its U.K. operations with the purchase of Cantab Asset Management Ltd., a financial planning business that manages about £900-million ($1.56-billion) in assets for high-net-worth private clients and charities.
Through its wealth manager in Britain, Canaccord CF-T announced Friday that it has entered into a share-purchase agreement to acquire Cambridge-based Cantab for an undisclosed price.
The deal is subject to regulatory approval and is expected to be completed by Sept. 30.
Over the past several years, Canaccord has been investing heavily in its wealth management division, particularly in the U.K. In 2021, it stepped into Scotland for the first time with the $93-million purchase of private investment manager Adam & Company. Earlier that year, the investment dealer sold a 22-per-cent stake in its British wealth-management business to U.S. private-equity fund HPS Investment Partners LLC. The HPS deal raised the equivalent of $210-million, an amount Canaccord chief executive Dan Daviau said at the time was earmarked for expanding the wealth management arm in Britain.
And last November, Canaccord Wealth Management UK entered into a share purchase agreement to acquire Intelligent Capital, a financial planning business based in Glasgow with approximately £220-million ($381.66-million) in client assets.
Canaccord’s expansion in the U.K. follows an unusual share transaction in early March where Canaccord’s executives and top producers bought nearly 10 per cent of the company’s shares using money borrowed by the company.
The timing of the share transaction raised eyebrows after the company ended plans last summer for an all-cash $1.1-billion management buyout offer that turned into a hostile takeover from within. The friction led to the resignations of multiple board directors, and eventually the company agreed to a two-year standstill with the board.
Canaccord Genuity said in March that the unusual share purchases will increase and diversify its employee ownership, and also help to retain and attract exceptional performers. However, some analysts are speculating the transaction could be signs of a second attempt at a go-private transaction.
Since then, Canaccord has seen a slight growth in its wealth management division. The company manages about $99.2-billion in assets globally, as of Dec. 31, 2023. That is up nearly $5-billion from the year prior. More than $56-billion of those assets are held in Britain – accounting for more than 34 per cent of the company’s total revenue. That is compared with the $36.3-billion of assets managed in North America and $6.1-billion in Canaccord’s Australian operations.
Canaccord Genuity Wealth Management UK’s CEO David Esfandi said in a statement on Friday the company is “delighted” to expand its presence into the Cambridge area. The addition of Cantab, which has been operating for 38 years, will add another $1.56-billion in assets as well as see all Cantab investment professionals and staff continue in their existing roles. Cantab CEO David Saunderson will remain with the company, as well as retain his seat on the Cantab board.
With a report from Tim Kiladze
Editor’s note: An earlier version of this story stated the company manages $32.2-billion of assets in North America. The company has $36.3-billion of assets in North America.