Canaccord to buy wealth management arm of Eden Financial
Canaccord Financial is set to acquire the wealth management arm of boutique private client investment management business Eden Financial, which has also put its asset management arm up for sale.
The move will swell AUM on Canaccord’s UK wealth management platform, known as Collins Stewart Wealth Management, to £9bn following the £12.8m acquisition, which is subject to FSA approval.
Eden Financial will retain its brand initially, although all Canaccord’s UK, Europe and offshore wealth management operations will be rebranded to Canaccord Wealth Management in 2013.
Stephen Massey, executive chairman of Eden Financial, will have a seat on the board of Collins Stewart Wealth Management, and will continue to have management responsibility for the Eden team. Massey will also become a member of the company’s UK Wealth Management executive committee.
According to Canaccord, the acquisition is part of the firm’s strategy to grow the scale of its wealth management platform, taking advantage of consolidation in the UK wealth management industry.
Meanwhile the asset management arm of Eden is up for sale and an announcement on the buyer is expected imminently. This part of the business includes former Gartmore UK equity manager Leigh Himsworth and former New Star multi-manager Mark Harris.
“We look forward to welcoming the clients and staff of Eden Financial to the Canaccord platform,” said Alexis de Rosnay, CEO of Canaccord’s UK and Europe operations.
“Our expanded client base will benefit from a wider variety of investment opportunities and the backing of an independent, global financial services company,” he added.
Restructuring and other charges related to this acquisition, totalling approximately £3.3m, are expected in Canaccord’s fiscal third quarter.
This article was first published on Investment Week