With the stake purchase, IGM becomes the second largest shareholder of the US-based independent wealth management and financial services firm, after Viking Global Investors, which is the lead shareholder

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IGM acquires stake in Rockefeller Capital Management. (Credit: Rock Staar on Unsplash)

Canadian wealth and asset management firm IGM Financial has acquired around 20.5% equity interest in US-based Rockefeller Capital Management for about $622m.

Established in 1882, Rockefeller provides family office, asset management, and strategic advisory services to high-net-worth individuals and families, institutions, and corporations.

IGM now becomes the second largest shareholder of the US-based independent financial services advisory firm, after Viking Global Investors, which is the lead shareholder.

The company said that the newly purchased stake in Rockefeller will support its expansion in the high-net-worth and ultra-high-net-worth client segments and enter the US wealth market.

Furthermore, the Rockefeller family announced plans to increase their investment in the wealth management and financial services firm.

IGM Financial president and CEO James O’Sullivan said: “This is a compelling strategic opportunity. “Rockefeller is a truly iconic brand with a proven growth model and a best-in-class executive team led by Gregory Fleming.

“Purchasing an ownership stake in Rockefeller is a risk-smart entry to the US market. Moreover, it has the potential to drive meaningful earnings growth for IGM over time.”

Simultaneously, IGM has also signed an agreement to sell 100% of Investment Planning Counsel (IPC) to The Canada Life Assurance Company for C$575m.

IPC’s leadership team, employees and 650 advisors will continue in the same positions and will operate independently.

The IPC transaction is expected to close by the end of this year, subject to customary closing conditions and receipt of regulatory approvals.

To fund the transaction, IGM has secured short-term financing of C$850m, including a C$550m term loan and a C$300m bridge facility.

Rockefeller Capital Management CEO Gregory Fleming said: “We’re delighted to welcome IGM Financial as a strategic investor in Rockefeller as we continue to build a best-in-class independent financial advisory firm.

“We look forward to partnering with IGM to accelerate our growth in the US market and also explore opportunities to leverage the best of our respective firms to pursue global growth.

“We share important values with IGM, including a commitment to creating an exceptional client experience and a culture of collaboration, excellence and integrity.”