Mark Wahlberg looks at the plans for his newly purchased Toronto condo, 36 Hazelton, with friends Mike Wekerle and Tie Domi at the 36 Hazelton showroom on May 28, 2011.JENNIFER ROBERTS/The Globe and Mail
Difference Capital founder Michael Wekerle says to expect more changes at the company next week.
The firm, a publicly traded merchant bank, is undergoing serious change. Three board members resigned this week, and personnel changes are to come.
"Next week," Mr. Wekerle said when asked about the timing. "Assume we are reducing."
He said there is a group of five main executives that he expects will be a core: himself, co-founder Henry Kneis, Jamie Brown and Tom Liston and Tom Astle. "Everybody has to re-evaluate their commitment," Mr. Wekerle said.
Mr. Wekerle's firm is small, but closely watched by Bay Street largely because of the reputation of its founder. Mr. Wekerle was a fast-living head trader who made himself and many others rich in his time at GMP Securities. Since leaving GMP, the street is curious as to whether he has a successful second act. Mr. Wekerle's profile also somewhat transcends the financial community as he has been the subject of society magazine profiles and is a "Dragon" on the CBC program Dragon's Den.
Difference is Mr. Wekerle's attempt to catch the wave in technology companies. So far though, tech stocks have gone up, while Difference shares have gone down.
The firm launched with a goal of investing in emerging technology companies, and Mr. Wekerle's idea attracted a group of senior names. Mr. Brown had a long career at Canaccord, as did Neil Johnson, who is now president of Difference. Paul Sparkes, another co-founder, came from CTV. Jeff Kehoe, a lawyer from the securities industry regulator, joined as a counsel. Tom Liston and Tom Astle, both technology analysts with long histories, joined to help evaluate investments.
But there has been significant flux. Mr. Sparkes is now leaving the board, Mr. Kehoe left months ago, and now it appears more changes are coming.
The portfolio investments are also likely to change as the firm looks to "right-size" its investments as well as its team, Mr. Wekerle said.