Focus Financial Partners has signed a definitive agreement under which Canada-based portfolio management firm Padlock Investment Management will join the former’s partner firm Dorchester Wealth Management.
Padlock Investment Management was established in 2012 by Don Lato. The firm offers investment management services to high-net-worth individuals and families.
Lato said: “Having known Dorchester for some time, I am excited to be joining their team. They share my deep commitment to helping clients with their financial security.
“This transaction allows me to continue providing my clients with excellence in wealth management and service, while also ensuring the legacy of my firm.”
Through the deal, Dorchester Wealth Management aims to broaden and deepen its investment management expertise as well as to expand its footprint in Ontario.
Focus Financial Partners founder, chairman, and CEO Rudy Adolf said: “Padlock is a strategic transaction that will help Dorchester further their reach in Toronto and enhance their investment management capabilities.
”This transaction is another demonstration of Focus’ unique ability to facilitate business expansion for our partner firms through M&A while also helping to address the succession planning needs of founders.”
Furthermore, the deal will allow Padlock Investment Management’s customers to obtain access to Dorchester Wealth Management’s comprehensive wealth management expertise and operational infrastructure.
The deal, subject to customary conditions and regulatory approval, is expected to be completed in Q3 2023.
In February this year, Focus Financial Partners agreed to be acquired by affiliates of private equity firm Clayton, Dubilier & Rice (CD&R) in an all-cash deal worth an enterprise value of more than $7bn.
Under the terms of the agreement, stockholders of the US-based publicly listed firm will be paid $53 per share in cash by CD&R.
