Print this article
Canadian Firm Makes Big Wealth Management Expansion, 60 Hires
Eliane Chavagnon
15 January 2014
Canada’s Dundee Goodman Private Wealth, a division of Dundee Securities, is bolstering its wealth management business with the addition of 60 investment advisors – collectively managing $2 billion - and their related staff from wealth manager Richardson GMP. The addition of 60 people more than doubles the firm's roster of advisors. Terms of the transaction was not disclosed in the press statement, but according to a Bloomberg report stands at $13.8 million. Dundee Goodman now has over 100 investment advisors across Canada managing around $6 billion. Meanwhile, Dundee Securities has expanded its global footprint, with offices in Toronto, Montreal, Calgary, Vancouver, Ottawa, Victoria, Dubai and London. The firm added that, according to a survey it commissioned, Canadians tend to rank independent wealth management firms more highly in terms of service than bank-owned securities dealers. Richardson GMP said the 60 departing advisors and staff joined the firm as part of its acquisition of Macquarie Private Wealth . “During integration, we identified certain advisor businesses within Macquarie that were not a good fit with our business model focused on a disciplined approach to serving affluent families and entrepreneurs,” said Andrew Marsh, president and CEO of Richardson GMP. The transaction remains subject to a number of customary closing conditions - including regulatory approval from the Investment Industry Regulatory Organization of Canada - and is expected to close in March 2014. Meanwhile, the investment advisors joining Dundee Goodman will remain part of the Richardson GMP organization during the transition period, the firm said.
“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,” said Ned Goodman, president and chief executive of Dundee Goodman Private Wealth’s parent company, Dundee Corporation.
The firm has taken over Richardson GMP’s existing branches in Ottawa, Montreal and Victoria, while a “more limited” transfer of advisors will take place from Richardson GMP offices in Vancouver, Calgary and Toronto to Dundee Goodman’s offices in those cities.
“Senior Dundee Goodman executives will travel to all six cities over the next week to explain details of the transaction and address questions and concerns,” the firm said.
“The big banks essentially own the private wealth business in Canada and are gradually taking over the mutual fund business, giving rise to many unhappy players, including private wealth investors, who are losing as a consequence,” Goodman said.