Canaccord Genuity to buy U.K.-based wealth manager

Canaccord Genuity Group Inc. has agreed to acquire Punter Southall Wealth Limited (PSW), a U.K.-based wealth management firm with roughly $8.5 billion in client assets, for nearly $300 million.

PSW offers advice and wealth management solutions to high-net-worth clients, a release announcing the deal said. The firm, which currently operates as a subsidiary of Punter Southall Group (PSG), offers bespoke portfolios, managed portfolio services and a multi-asset fund range.

“The market for financial advice to high-net worth individuals is consolidating and we felt that Punter Southall Wealth would benefit from a larger partner which can take it to the next level of its development,” said Jonathan Punter, CEO of Punter Southall Group, in a press release.

The deal calls for Canaccord to buy PSW from Punter Southall Group, which also has subsidiaries providing governance, law and analytics services, among others. The acquisition includes Punter Southall’s Psigma brand.

PSW has offices in London, Guildford, Birmingham, Newcastle and Edinburgh.

Under the terms of the deal, which is subject to regulatory approval, Canaccord Genuity will pay Punter Southall Group £164 million (C$277.5 million) plus newly-issued shares of Canaccord Genuity’s wealth management subsidiary in the United Kingdom.

Canaccord has agreed to pay retention and incentive awards to certain key PWS employees valued at about $10 million.

Before Tuesday’s announcement, Canaccord Genuity Group already had wealth management offices in the U.K, Guernsey, Jersey and the Isle of Man. Those operations generated $75.1 million in revenue (out of $166.2 million in revenue from Canaccord Genuity’s combined global wealth management operations) in the three months ending Sept. 30, 2021.

Overall, Canaccord Genuity reported Nov. 8 it had $475 million in revenue for its fiscal second quarter. Canaccord Genuity’s fiscal year ends March 31.

The agreement announced Tuesday comes two months after Canaccord Genuity closed its acquisition of Adam & Company’s private client investment management business from the Royal Bank of Scotland.