Canaccord Genuity Group is set to acquire the private client investment management business of Adam & Company. The acquisition is expected to be accretive to the Company’s adjusted earnings. Closing is subject to regulatory approval and is expected to take place at the end of the Company’s second fiscal quarter.
Adam & Company’s investment management business is a leading Scottish private client investment manager based in Edinburgh, with client assets totaling approximately £1.7 billion (C$2.9 billion), which are managed on a discretionary basis. The Business includes a stable and experienced team of portfolio managers with direct responsibility for client relationships. With a commitment to service excellence, the Business benefits from strong client loyalty, as demonstrated through the growth in its client assets of approximately 45% over the past five years.
The acquisition represents a unique opportunity for Canaccord Genuity Wealth Management to enter the Scottish market with a deeply established franchise and a strong brand. CGWM UK intends to continue to operate the Business under the name of Adam & Company. The Business’s core client proposition will remain largely unchanged, and the existing direct relationships between clients and portfolio managers will not be affected.
As part of CGWM UK, the investment professionals and clients of the Business will also have access to the broad range of resources and expertise in the areas of global and small cap equities, ESG and fixed income offerings, in addition to its robust suite of retirement, later life care and inheritance tax (IHT) planning capabilities. To help facilitate this, Adam & Company’s investment team will become active members of CGWM UK’s existing investment committees. With a common operating and technology platform, transition to CGWM UK is expected to be seamless to clients and investment professionals. Graham Storrie, Managing Director of Adam & Company, will continue with the Business in a leadership role.
David Esfandi, Chief Executive Officer of CGWM UK said: “Entering the Scottish market represents a very important milestone in our long-term growth strategy and we are pleased to be doing so with Adam & Company’s investment management business, a leading regional franchise with a strong cultural fit and a similar client base to our own. We are delighted to welcome this team of deeply established investment professionals, and we look forward to supporting their continued growth and commitment to providing the best possible outcomes for their clients.”