SW currently has approximately £4.8 billion (C$7.9 billion) in client assets and generated annual revenue of approximately £34.7 million (C$60.0 million) in the year ended December 31, 2021.
CANACCORD GENUITY ACQUIRES PUNTER SOUTHALL WEALTH. (Credit: Nattanan Kanchanaprat from Pixabay)
Canaccord Genuity Group Inc. (TSX: CF) (the “Company”) is pleased to announce that through its wealth management business in the UK and Crown Dependencies (“CGWM UK”), it has completed its previously announced acquisition of Punter Southall Wealth Limited (“PSW”).
With a strong track record of successfully integrating businesses and clients, CGWM UK expects to achieve tangible revenue and cost synergies with a clear pathway to continued growth. PSW currently has approximately £4.8 billion (C$7.9 billion) in client assets and generated annual revenue of approximately £34.7 million (C$60.0 million) in the year ended December 31, 2021.
David Esfandi, Chief Executive Officer of CGWM UK said: “We are so pleased to welcome the PSW team which brings a strong and complementary fit for our advice-led offering and builds on our footprint in the UK, including an expanded presence in Scotland. The addition of PSW will enhance our capabilities and will strengthen our model-based product and service offering to address the increasingly complex wealth management and financial planning needs of our clients.”
John Howard-Smith, Chief Executive Officer of Punter Southall Wealth, added: “On behalf of the Punter Southall Wealth team, we are very pleased to be joining our new colleagues at Canaccord Genuity Wealth Management. We look forward to working closely together to grow our integrated wealth management business and advance our product and service offering for our valued clients.”
As part of CGWM UK, the investment professionals, financial planners, and clients of PSW will also have access to the broad range of resources provided by CGWM UK and the Company’s broader global platform. To help facilitate a seamless transition, PSW’s investment team will play an important role in the combined businesses’ investment process.
In connection with completion of the acquisition, CGWM UK will add £100 million (C$169.2 million) to its existing bank facility. In addition, HPS Investment Partners, LLC, on behalf of investment accounts and funds it manages, has made an additional investment in CGWM UK through the purchase of a new series of convertible preferred shares of CGWM UK in the amount of £65.3 million (C$110.5 million). Cumulative dividends will be payable by CGWM UK on the convertible preferred shares at the greater of an annual 7.5% coupon and the proportionate share that such shares would receive on an as converted basis. The convertible preferred shares will also carry customary minority rights in respect of CGWM UK governance and financial matters, a liquidation preference, and call protections.
Source: Company Press Release