In a wealth management industry that has seen its share of M&A action, this is another turn on the wheel.

Canada’s Canaccord Genuity has said today that its wealth management business in the UK & Crown Dependencies, aka CGWM UK, has agreed to buy the international arm of London-listed Brooks Macdonald Group.

Brooks Macdonald Asset Management (International, or BMI, which was founded in 2012, provides investment management, financial planning and fund management services through its offices in Jersey, Guernsey, and the Isle of Man. As of 30 June 2024, BMI had £2.3 billion ($3.0 billion) in funds under management and an annual revenue of £19.9 million.

The deal is a further example of the kind of wealth sector M&A and consolidation that has been a feature of the industry in recent years, as firms have sought economies of scale to handle rising technology and regulatory costs, reposition for new markets, or, in some cases, shed businesses not considered to be "core."

Canaccord is paying £28 billion ($36.5 million) to buy the business, with an added contingent consideration of up to £22.85 million payable on the second anniversary of completion, subject to meeting certain revenue targets. 

BMI will be acquired by CGWM UK's international subsidiary, Canaccord Genuity Wealth (International) Holdings Limited, with an agreed level of regulatory capital, with any surplus paid for at completion.

Canaccord said that the purchase of the business complements its existing capabilities in Jersey. 

“This is a mutually beneficial transaction that will cement Canaccord's position as a fully-fledged integrated wealth manager,” David Esfandi, chief executive of CGWM UK said in a statement today. “Both firms are well-established across the Crown Dependencies, and BMI will also add significant financial planning expertise in our international business. Canaccord has a robust and scalable operating platform with a proven track record of successfully integrating businesses, and we anticipate a smooth process for BMI in 2025."

Completion of the acquisition is subject to regulatory approval and other customary closing conditions. The acquisition is expected to be completed within the quarter ending 31 March 2025.

Spencer House Partners LLP is acting as financial advisor and Farrer & Co LLP are acting as legal advisor to CGWM UK in connection with this transaction. Collas Crill is acting as legal adviser to Canaccord Genuity Wealth (International) Limited.

Raymond James Financial International Limited is acting as financial advisor and Travers Smith LLP are acting as legal advisor to Brooks Macdonald in connection with this transaction.