Canaccord Genuity buys Adam & Co division
Cash will paid up-front
Canadian wealth manager Canaccord Genuity is acquiring the wealth management business of private bank Adam & Co from Royal Bank of Scotland in a £54m deal.
RBS parent NatWest put the Edinburgh-based business up for sale earlier this year, three decades after rescuing it from insolvency.
Canaccord will pay cash up-front for the wealth division in a deal expected to complete by the end of September, subject to regulatory approval.
Canaccord said it will keep the Adam & Co name and plans to open a new office in central Edinburgh. RBS will retain the private banking business which will be absorbed into Coutts.
A Coutts Scotland team will be created and operated across three locations, while the Adam & Co business in London will be integrated into Coutts Coverage, NatWest said.
Canaccord said in a statement: “The business’s core client proposition will remain largely unchanged, and the existing direct relationships between clients and portfolio managers will not be affected.”
The business will continue to be led by Graham Storrie, managing director of Adam & Co.
He 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.
“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.”
David Esfandi, chief executive of CGWM UK, said: “Entering the Scottish market represents a very important milestone in our long-term growth strategy and we are pleased to be doing so with Adam & Company’s investment management business, a leading regional franchise with a strong cultural fit and a similar client base to our own.
“We are delighted to welcome this team of deeply established investment professionals, and we look forward to supporting their continued growth and commitment to providing the best possible outcomes for their clients.”
Adam & Co held £1.6bn of assets under management and generated revenue of £12.5m in the year ended 31 December.
Adam & Co was launched in 1983 ands the Royal Bank of Scotland acquired it ten years later following substantial foreign exchange related losses, and was able to provide the capital needed to rebuild the bank’s balance sheet.
There have been some bumps along the road, including the loss in 2010 of most of the staff to join IM Wealth, following its launch by former Adam & Co head of private client investment administration William Kirkwood and head of investment operation Ross McDonald.
Aussie firm Praemium expands into Edinburgh
Australia-based custody services and investment platform Praemium is opening an office in Edinburgh as part of big plans for expansion in the UK.
It aims to have 20 staff in the city, building on existing offices in London and Birmingham.
Chief executive Michael Ohanessian said: “As a cluster for fintech service expertise, Edinburgh is a logical centre from which we can successfully onboard a rapidly expanding sales pipeline.
“Praemium has doubled in size over the past year. Despite the pandemic, the past 12 months have been the most transformational in our story thus far.”
Managing director for UK and international Mark Sanderson added: “We had a hugely successful year last year, in which the platform in the UK and internationally grew assets by 32%.”