2021 Open
2021 Open

Canaccord Genuity Group Inc. acquisition of Punter Southall Wealth

14 December 2021


Acquisition further expands Canaccord Genuity Wealth Management's footprint in the UK and increases scale of its financial planning capability

TORONTO and LONDON, Dec. 14, 2021 /CNW/ - Canaccord Genuity Group Inc. (TSX: CF) the "Company") is pleased to announce that through its wealth management business in the UK and Crown Dependencies ("CGWM UK"), it has entered into a share purchase agreement to acquire Punter Southall Wealth Limited ("PSW") including the intermediary-facing brand Psigma, from Punter Southall Group ("PSG"). Closing is subject to customary closing conditions, including regulatory approval.

PSW is a leading vertically integrated wealth manager, offering a broad range of advice and wealth management solutions to high net-worth individuals, including bespoke portfolios, managed portfolio services and a multi-asset fund range, complemented by a strong intermediary distribution channel. Currently operating as a subsidiary of PSG, PSW has approximately £5.0 billion (C$8.5 billion) in client assets. PSW is forecast to generate annual revenue of approximately £33.7 million (C$57.0 million) in the year ending December 31, 2021.

This acquisition represents an opportunity for CGWM UK to build upon its exceptional growth to date and advance its priority of becoming an integrated wealth manager of scale. PSW's core client proposition will remain largely unchanged, and the existing direct relationships between portfolio managers, financial planners and their clients will not be affected. With a strong track record of successfully integrating businesses and clients, CGWM UK expects to achieve tangible revenue and cost synergies with a clear pathway to continued growth. 

David Esfandi, Chief Executive Officer of CGWM UK said: "Our acquisition of Punter Southall Wealth represents an exciting strategic opportunity to further develop our integrated wealth management business, adding national scale and exceptional capability to our advice-led offering. We see a strong cultural fit between CGWM UK and PSW and we look forward to supporting this talented team, as we work together to build upon the strong foundations that both of our businesses have established to date."

As part of CGWM UK, the investment professionals, financial planners, and clients of PSW will also have access to the broad range of resources provided by CGWM UK and the Company's broader global platform.  To help facilitate a seamless transition, several of PSW's team will become active members of CGWM UK's existing investment committees.

Jonathan Punter, Chief Executive Officer of Punter Southall Group, said: "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. After long and careful consideration, we chose Canaccord Genuity as the best partner for our clients and our people."

John Howard Smith, Chief Executive Officer of Punter Southall Wealth, added: "There is a strong cultural fit between Punter Southall Wealth and Canaccord Genuity and we share a commitment to provide the highest standard of financial advice and investment management, while fostering enduring client partnerships. Being part of a well-capitalised, international group provides good opportunities to grow our existing operations while providing continuity for our valued clients and the exceptional team we have."


Consideration to be paid to PSG on closing will comprise cash in the amount of £164 million (C$277.5 million) and an equity interest comprising newly issued ordinary shares in CGWM UK. PSW will be acquired by CGWM UK with a minimum level of regulatory capital, with any surplus distributed to PSG by way of a pre-completion dividend.

In addition, retention and incentive awards comprising cash and equity in CGWM UK with a combined attributed value of approximately £6.0 million (C$10.2 million) and subject to vesting conditions will be made to certain key employees of PSW.

In connection with the closing of the acquisition, it is expected that CGWM UK will add £100 million (C$169.2 million) to its existing bank facility. In addition, HPS Investment Partners, LLC on behalf of investment accounts and funds it manages has agreed to make an additional investment in CGWM UK on closing of the acquisition through the purchase of a new series of convertible preferred shares of CGWM UK in the amount of £65.3 million (C$110.5 million). Cumulative dividends will be payable by CGWM UK on the convertible preferred shares at the greater of an annual 7.5% coupon and the proportionate share that such shares would receive on an as converted basis. The convertible preferred shares will also carry customary minority rights in respect of CGWM UK governance and financial matters, a liquidation preference, and call protections.

On conclusion of the acquisition, it is expected that the Company will hold an approximate 66.9% equity equivalent interest in CGWM UK on an as converted basis.

Fenchurch Advisory Partners is acting as financial adviser and Farrer & Co LLP is acting as legal adviser to CGWM UK in connection with the transaction.

Spencer House Partners is acting as financial adviser and Ashurst is acting as legal adviser to Punter Southall Group in connection with the transaction.


Through its principal subsidiaries, Canaccord Genuity Group Inc. (the "Company") is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. Since its establishment in 1950, the Company has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual, institutional and corporate clients through comprehensive investment solutions, brokerage services and investment banking services. The Company has wealth management offices located in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. The Company's international capital markets division operates in North America, UK & Europe, Asia, Australia and the Middle East.

Canaccord Genuity Group Inc. is publicly traded under the symbol CF on the TSX.


The wealth management operations of the Canaccord Genuity Group (Canaccord Genuity Wealth Management) provide comprehensive wealth management solutions and brokerage services to individual investors, private clients, charities and intermediaries through a full suite of services tailored to the needs of clients in each of its markets. Canaccord Genuity Wealth Management has Investment Advisors (IAs) and professionals in Canada, the UK and its Crown Dependencies (Jersey, Guernsey and the Isle of Man) and Australia and has advisors in Canada who are registered in the US. Reference to CGWM UK includes offices located in both the UK and the Crown Dependencies. Since 2016, Canaccord Genuity has materially invested to support the growth of its wealth management businesses in all geographies. As a result of this growth, client assets have increased substantially, and Canaccord Genuity Wealth Management has become a stable and significant contributor to firmwide profitability and earnings.


Punter Southall Wealth Limited currently operates as a subsidiary of Punter Southall Group. With offices in London, Guildford, Birmingham, Newcastle and Edinburgh, the Business offers clear, expert, and timely financial planning, wealth management, investment management and retirement planning services to high net-worth individuals. A deeply experienced team of financial planners and investment managers combine expertise and insight to provide personalized advice and investment solutions, with a goal of helping their clients create and protect wealth and build long-term security. Being one of the first financial planning firms to become Chartered means that Punter Southall Wealth Limited has continually been held to the highest professional standards.


Founded in 1988, Punter Southall Group is a dynamic financial and professional services group which has grown by changing and adapting to meet the ever-evolving needs of its clients. The Group operates companies ranging from those focused on financial management and employee benefits to trustee consultancy and investment performance services, as well as data analytics and new ventures in defined benefit pension management, legal and insurance sectors.


This press release may contain "forward-looking information" as defined under applicable securities laws ("forward-looking statements"). These statements relate to future events or future performance and reflect management's expectations, beliefs, plans, estimates, intentions and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts, including business and economic conditions and Canaccord Genuity Group's growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", "target", "intend", "could" or the negative of these terms or other comparable terminology. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-looking statements. In evaluating these statements, readers should specifically consider various factors that may cause actual results to differ materially from any forward-looking statement. These factors include, but are not limited `to, market and general economic conditions, the nature of the financial services industry and the risks and uncertainties discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and its annual information form ("AIF") filed on www.sedar.com as well as the factors discussed in the sections entitled "Risk Management" and "Risk Factors" in the AIF, which include market, liquidity, credit, operational, legal and regulatory risks. Material factors or assumptions that were used by the Company to develop the forward-looking statements contained in this press release include, but are not limited to, those set out in the Fiscal 2021 Outlook section in the annual MD&A and those discussed from time to time in the Company's interim condensed and annual consolidated financial statements, its annual report and the AIF filed on www.sedar.com. The preceding list is not exhaustive of all possible risk factors that may influence actual results. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive.

Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. The forward-looking statements contained in this press release are made as of the date of this press release and should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release. Except as may be required by applicable law, the Company does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether as a result of new information, further developments or otherwise.

SOURCE Canaccord Genuity Group Inc.


For further information:

Investor and media relations inquiries: Christina Marinoff, Vice President, Investor Relations & Communications, Phone: 416-687-5507, Email: cmarinoff@cgf.comhttp://www.cgf.com/investor-relations

Download: pdf version
< Back