Cannacord Genuity has struck a deal to acquire the private client business of Adam & Company from RBS for £54m in a bid to lay down roots in the Scottish market.
Using its UK wealth management arm the Canadian firm will hoover up £1.7bn in discretionary assets from the Edinburgh manager which RBS parent Natwest put up for sale earlier this year.
The deal, which is due to complete at the end of September subject to regulatory approval, is expected to boost CGWM UK’s adjusted earnings. Adam & Company has seen its client asset grow by approximately 45% over the past five years and generated revenues of £12.5m for the year ended 31 December 2020.
CGWM UK chief executive officer David Esfandi said that entering the Scottish market was “a very important milestone” in the firm’s long-term growth strategy, adding that Adam & Company has a “strong cultural fit and a similar client base to our own”.
CGWM UK intends to retain the Adam & Company logo and has said its core client proposition will remain largely unchanged as will the existing direct relationship between clients and portfolio managers.
Staffers will be relocated to a new office based in Edinburgh, to be completed during the acquisition period, and the investment team will be integrated into CGWM UK’s exiting investment committee. Graham Storrie, managing director of Adam & Company, will continue to have a leadership role within the business.
Storrie said: “To build on the success of Adam & Company’s investment management business it was essential to find a buyer who shared our investment philosophy and strategic ambitions for the future.”
He added: “I believe that with CGWM, we will be able to offer our clients in Scotland and beyond the continuity and high quality service they deserve, and I am delighted to have the opportunity to continue to lead this business.”
The deal comes shortly after HPS Investment Partners provided CGWM UK with £125m worth of funding to “expand and grow the business through both internal development and acquisitions”.
Following the sale, Adam & Company’s banking and lending activities will be transferred to the Coutts business of Natwest Group.
