IGM Financial has acquired a 20.5% stake in American independent financial services advisory firm Rockefeller Capital Management in a deal worth about $622m.
The Canada-based wealth and asset management firm, which is part of Power Corporation of Canada group of companies, has now become the second largest shareholder in Rockefeller Capital.
Viking Global Investors remains as a lead shareholder in the advisory firm, while the Rockefeller family is increasing its investment, as part of the deal.
With the stake in Rockefeller Capital, IGM Financial expects to boost its strategy of growing its footprint in the high-net-worth and ultra-high-net-worth client segments, while enabling its entry into the US wealth market.
Besides, the transaction enhances the Canadian firm’s rights to increase its equity interest in Rockefeller Capital in the future with two board seats.
Established in 1882, Rockefeller Capital is said to have significantly grown over the previous five years. Its client assets increased more than five times from under $18bn in 2018 to over $100bn as of 31 March 2023.
Rockefeller Capital CEO Gregory Fleming said: “We’re delighted to welcome IGM Financial as a strategic investor in Rockefeller as we continue to build a best-in-class independent financial advisory firm.
“We look forward to partnering with IGM to accelerate our growth in the U.S. market and also explore opportunities to leverage the best of our respective firms to pursue global growth.”
The Canadian wealth and asset management firm has also announced an agreement with Canada Life Assurance to divest 100% of Investment Planning Counsel (IPC) to the latter in a deal worth C$575m ($428.6m).
Subject to customary conditions and regulatory approvals, the divestiture is anticipated to close by the end of this year.
IGM Financial president and CEO James Sullivan said: “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.
“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.
“Further, it provides Canada Life with the opportunity to deepen their presence in the Canadian wealth market and will assist IPC in achieving its full strategic potential. Canada Life will be a strong owner of this business.”
