finance

Canaccord Genuity UK acquires Adam & Company for £54 million



Canaccord Genuity Wealth Management UK (CGWM UK) has entered into an agreement with the Royal Bank of Scotland to acquire its private client investment management business Adam & Company for £54m.

Subject to regulatory approval, the deal is expected to complete during the quarter ended 30 September.

The Edinburgh-based investment management firm has client assets totalling approximately £1.7bn, which are managed on a discretionary basis.

CGWM UK stated that the transaction represents a “unique opportunity” to enter the Scottish market with an established franchise.

It intends to continue to operate the business under the existing brand, with Adam & Co’s core client proposition remaining largely unchanged, and the existing direct relationships between clients and portfolio managers unaffected.

As part of CGWM UK, Adam & Co staff will now have access to a range of resources in the areas of global and small cap equities, ESG funds and fixed income, in addition to its suite of retirement, later life care and inheritance tax planning capabilities.

Adam & Co’s investment team will become active members of CGWM UK’s existing investment committees.

With a common operating and technology platform in Avaloq, the transition to is expected to be fairly seamless for clients and investment professionals.

Graham Storrie, managing director of Adam & Co, will continue with in a leadership role.

He commented: “To build on the success of Adam & Co’s investment management business it was essential to find a buyer who shared our investment philosophy and strategic ambitions for the future.

“I believe that with CGWM, we will be able to offer our clients in Scotland and beyond the continuity and high quality service they deserve, and I am delighted to have the opportunity to continue to lead this business.”

Read More   Sajid Javid ‘poised to break government limit on borrowing’

David Esfandi, chief executive of CGWM UK, said: “Entering the Scottish market represents a very important milestone in our long-term growth strategy and we are pleased to be doing so with Adam & Company’s investment management business, a leading regional franchise with a strong cultural fit and a similar client base to our own.

“We are delighted to welcome this team of deeply established investment professionals, and we look forward to supporting their continued growth and commitment to providing the best possible outcomes for their clients.”

During the period to completion, CGWM UK’s said it intends to establish a new office location for the Adam & Co investment management business in central Edinburgh.

RBS parent NatWest has been considering the sale of Adam & Co since February.

The transaction is to be completed through a business transfer agreement that will result in CGWM UK acquiring both the shares of Adam & Co, as well as certain assets from RBS – including the brand, certain intellectual property and client contracts.

Portfolio managers and supporting employees who are currently employed by RBS, yet dedicated to Adam & Company’s business, will transfer to CGWM UK.

A retention plan will be implemented for key employees based on client assets and continued employment over a four year period.

During the year ended 31 December 2020, Adam & Co’s investment management business held average assets under management of £1.6bn and generated revenue of approximately £12.5m.

The private bank was founded in Edinburgh in 1983 and was rescued from collapse by NatWest in 1993, a year after it made a multimillion pound foreign exchange trading loss.

Read More   Facebook facing most probes by Irish data regulator

Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.



READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.