- This topic is empty.
Viewing 1 post (of 1 total)
-
Posts
-
IGM Financial (TSX:IGM) Inc, a member of the Power Corporation of Canada (TSX:POW) group of companies, revealed that it has bought a 20.5% equity interest in Rockefeller Capital Management, a top US independent financial services advisory firm for US$622 million.
As a result, Winnipeg-based IGM, which is one of Canada’s largest diversified wealth and asset management companies, is now Rockefeller’s second largest shareholder, with Viking Global Investors remaining the lead shareholder.
In addition, as part of the transaction, the Rockefeller family is increasing its investment in Rockefeller Capital Management.
IGM said its equity interest in Rockefeller advances its strategy of expanding into the high-net-worth and ultra-high-net-worth client segments, creating an entry to the US, which is the “largest and deepest” wealth market in the world.
“This is a compelling strategic opportunity,” IGM Financial (TSX:IGM) CEO James O’Sullivan said in a statment. “Rockefeller is a truly iconic brand with a proven growth model.”
Rockefeller traces its roots back to 1882 when John D Rockefeller opened the first full-service single-family office in the US. Rockefeller has experienced robust growth over the last five years, with its client assets rising more than fivefold from less than US$18 billion in 2018 to over US$100 billion as of March 31, 2023. Rockefeller has expanded its geographic footprint from three offices to 44 offices across major wealth centers in the US.
Members of the Rockefeller family and the Desmarais family, who are majority owners, through the Desmarais Family Residuary Trust of IGM’s parent company Power Corporation of Canada (TSX:POW), have had long-standing ties, collaborating on many levels over the decades. In recent years, Rockefeller Capital Management has worked with Power Corporation and its group of companies.
“We look forward to partnering with IGM to accelerate our growth in the US market and also explore opportunities to leverage the best of our respective firms to pursue global growth,” said Rockefeller Capital Management CEO Gregory Fleming.
Sale of Investment Planning Counsel
Concurrently with the Rockefeller transaction, IGM also said that it has struck an agreement to sell 100% of Investment Planning Counsel (IPC) to The Canada Life Assurance Company for C$575 million.
“I’m so pleased that the IPC team will be moving over to our sister company, Canada Life, and will continue to be part of the Power Corporation family of companies,” said O’Sullivan. “This transaction enables us to unlock the value of IPC, reflecting its capabilities, scale and distinct structure and allows us to strengthen our focus on and capital allocation to IG Wealth Management.
IPC’s 650 advisors will remain in place and will operate independently, said the company. “IPC advisors will continue to have an open architecture shelf and benefit from the self-managed independence they had at IGM,” it added.
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.