Wealth manager Brooks Macdonald has sold its international arm to fellow wealth manager Canaccord Genuity in a deal worth up to £50.9m, as the business seeks to simplify its offering and “reignite growth”.
The deal is expected to complete by March 2025, and concludes a strategic review of the firm’s international business.
Incoming CEO Andrea Montague (pictured) said: “Today we are redefining our strategy to reignite growth with a renewed focus on excellent client service, broadening and deepening our client reach and exploring targeted opportunities to drive scale and efficiencies.”
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In the firm’s annual results, Brooks Macdonald’s funds under management rose 7% to £18bn in the year to 30 June.
The firm said net outflows of £600m were driven by the macroeconomic backdrop and higher interest rate environment. Brooks posted £800m net inflows in FY23.
Gross inflows were also down to £2.3bn from the £2.7bn recorded in the previous financial year.
The annual results were Andrew Shepherd’s last as CEO of Brooks Macdonald, bringing to a close a 22 year period at the firm. He will be succeeded by Andrea Montague.
Brooks has appointed former Phoenix Group finance director Katherine Jones to take up Montague’s role as CFO.
Meanwhile, revenue ticked up 3.6% to £128.3m, driven by increased transactional and FX income. Brooks also registered a 12.5% increase in underlying profit, hitting £34.1m.
Outgoing CEO Shepherd said: “Despite the challenging market conditions, we have delivered good results, with our FUM growing to £18bn and having maintained strong underlying profit margins. This performance is a testament to our robust business model and the unwavering commitment of our people.”
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Montague added that the sale of Brooks Macdonald International would simplify the group’s offering.
David Esfandi, CEO of Canaccord Genuity Wealth Management, called the deal a “mutually beneficial transaction.”
“Both firms are well-established across the Crown Dependencies, and BMI will also add significant financial planning expertise in our international business.
“Canaccord has a robust and scalable operating platform with a proven track record of successfully integrating businesses, and we anticipate a smooth process for BMI in 2025.”
