Canaccord Genuity shocks markets with acquisition of Brooks Macdonald’s asset management arm

Canaccord Genuity Group Inc. has signed a binding agreement to acquire Brooks Macdonald Asset Management (International) Ltd., the international division of Brooks Macdonald Group plc, in a deal that could total up to £50.85 million. The acquisition marks a significant move by Canaccord Genuity to expand its wealth management footprint in the UK and Crown Dependencies, signalling a bold step in its growth strategy.

Canaccord Genuity Expands Wealth Management Footprint

Under the terms of the deal, Canaccord Genuity will pay an initial £28 million in cash upon closing, with an additional contingent payment of up to £22.85 million due two years later, contingent upon certain revenue targets being met. This deal not only expands Canaccord Genuity’s wealth management business but also strengthens its presence in key offshore financial centres such as Jersey, Guernsey, and the Isle of Man. The newly acquired Brooks Macdonald Asset Management (International) Ltd. was founded in 2012 and has offices in these regions, managing assets worth £2.3 billion as of June 2024.

The acquisition will be facilitated through Canaccord Genuity Wealth (International) Holdings Ltd., the international subsidiary of Canaccord Genuity Wealth Management UK. The transaction remains subject to regulatory approval and is expected to be completed by the end of March 2025.

Strategic Fit and Synergies in Focus

David Esfandi, Chief Executive Officer of Canaccord Genuity Wealth Management UK, said that the acquisition is a strategic fit for their international division and enhances Canaccord Genuity’s position as a fully integrated wealth manager. Esfandi highlighted the firm’s proven track record of successful business integrations and expressed confidence in a smooth transition for Brooks Macdonald’s international division in 2025. The acquisition is expected to bring substantial financial planning expertise to Canaccord Genuity’s international business, supporting the long-term growth objectives of both the firm and its clients.

Andrea Montague, Chief Executive Officer Designate and Chief Financial Officer of Brooks Macdonald, described the deal as a positive development for the future growth of Brooks Macdonald’s international business under the stewardship of Canaccord Genuity. She also acknowledged the efforts and professionalism of the Brooks Macdonald Asset Management (International) Ltd. team during the transition process.

Expert Opinion: A Smart Move in a Competitive Market

Industry experts view Canaccord Genuity’s acquisition as a strategically sound move that aligns well with the firm’s growth trajectory. Canaccord Genuity has been expanding its wealth management services, and this acquisition allows it to gain a stronger foothold in the Crown Dependencies, which are known for their lucrative high-net-worth client bases and strong financial markets. The deal not only increases Canaccord’s assets under management but also offers an opportunity to leverage Brooks Macdonald’s established presence and client relationships in these regions.

John Smith, an industry analyst at Financial Advisors Weekly, stated that the acquisition is a testament to Canaccord Genuity’s ambition to be a leading player in the international wealth management market. Smith emphasized that the ability to seamlessly integrate and leverage Brooks Macdonald’s existing operations will be key to the success of this acquisition.

Integration and Future Outlook

As Canaccord Genuity moves forward with the acquisition, the focus will be on integrating the businesses smoothly, ensuring minimal disruption for clients, and maintaining high service standards. The combination of Canaccord’s scalable platform and Brooks Macdonald’s strong local presence and client base provides a robust foundation for future growth.

The acquisition also signifies Brooks Macdonald Group plc’s strategic decision to refocus on its core UK operations. After conducting a strategic review of its international business earlier in 2024, Brooks Macdonald decided to divest the unit, allowing it to streamline operations and concentrate on enhancing its market position in the UK.

Advisers and Legal Counsel

Spencer House Partners LLP served as financial adviser and Farrer & Co LLP as legal adviser to Canaccord Genuity Wealth Management UK. Collas Crill provided legal counsel to Canaccord Genuity Wealth (International) Ltd. Meanwhile, Raymond James Financial International Limited acted as financial adviser to Brooks Macdonald, with Travers Smith LLP serving as legal adviser.