Canaccord Genuity launches strategic review of UK wealth arm
Investment bank Canaccord Genuity has reportedly launched a strategic review of its UK wealth management business amid a barrage of consolidation in the sector.
The Canadian firm is working with London-based Fenchurch Advisory Partners to assess the future of Canaccord Genuity Wealth Management (CGWM), the Financial Times reported, citing two people familiar with the matter.
The review’s potential outcomes could range from a sale of the business to bringing in another investor, it was reported.
Fenchurch declined to comment. In a statement, Canaccord said it had no plan to sell the business and “it continues to have a productive working relationship with its strategic and financial partner”.
“The company regularly explores opportunities to strengthen the value of its business and has been an active acquiror in all geographies where it has operations,” it added. “We routinely engage with external advisors to assess market conditions and opportunities across our global business.”
European wealth managers have experienced a wave of consolidation in recent years, driven by private equity firms and larger rivals in the US.
The UK’s wealth management industry is among the most competitive parts of financial services as big banks and smaller investment firms battle to win clients ranging from pensioners to billionaires.
The country’s small and medium-sized wealth managers have become takeover targets as they grapple with cost pressures and sweeping regulatory changes, including crackdowns on high fees.
In the latest quarter, Toronto-listed Canaccord Genuity reported that wealth assets in its UK and crown dependencies business rose 19.8 per cent year-on-year, totalling C$63bn (£35.6bn).
David Esfandi, CGWM’s chief executive, said alongside the results earlier this month that the business aimed “to be the best integrated wealth manager by performance and service”.
Canaccord Genuity’s UK wealth arm has quickly scaled up through a string of recent acquisitions, including two deals this year for Cantab Asset Management and Brooks Macdonald’s international business.
It has previously picked up rival advisory outfits like Punter Southall Wealth, Thomas Miller, Hargreave Hale and the investment management arm of RBS-owned Adam & Company.