Dundee Corp. (DC/A) is acquiring 60 investment advisers and their staff as part of an agreement with Richardson GMP Ltd. for C$15 million ($13.8 million).
The advisers, who manage C$2 billion in assets, will be transferred to the Dundee Goodman Private Wealth unit, the Toronto-based company said today in a statement. The addition will give the Dundee unit about 100 investment advisers across Canada managing more than C$6 billion.
“This transaction marks a significant step forward in Dundee Corporation’s strategic plan to build its private wealth and capital markets divisions into first-class entities,” Chief Executive Officer Ned Goodman said in the statement.
Richardson GMP, the partnership between GMP Capital Inc. (GMP) and James Richardson & Sons Ltd., is transferring private wealth offices in Ottawa, Montreal and Victoria that it acquired from Macquarie Group Ltd. last year. Some investment advisers gained from Macquarie will move from Richardson GMP offices in Vancouver, Calgary and Toronto, the company said in the statement.
Richardson GMP agreed in September to buy Macquarie Private Wealth Canada for C$132 million to expand its wealth-management partnership. The transaction closed in November.
“During integration, we identified certain adviser businesses within Macquarie that were not a good fit with our business model,” Andrew Marsh, CEO of Richardson GMP, said in a separate statement. “We considered several options and are confident that this arrangement with Dundee offers the best outcome and opportunities for everyone involved.”
Dundee agreed to pay about C$15 million in the transaction, Marsh said in a conference call. Richardson GMP said it will have C$26 billion in assets under administration after the transaction is completed.
To contact the reporter on this story: Doug Alexander in Toronto at email@example.com