Centerbridge Partners and Abu Dhabi sovereign wealth fund Mubadala Investment Company are in talks to acquire Canaccord Genuity’s UK wealth management business in a transaction valued at approximately £1bn, according to Private Equity Wire. The discussions were reported by Bloomberg and involve negotiations with the Canadian financial services group, according to Private Equity Wire.
Talks follow expiry of an exclusive period with other sponsors
The consortium of Centerbridge and Mubadala is negotiating after a period of exclusive discussions with private equity firms Warburg Pincus and Clayton, Dubilier & Rice (CD&R) expired, Bloomberg reported, according to Private Equity Wire. A deal could be announced in the coming weeks, although negotiations remain ongoing and there is no certainty that an agreement will be reached, according to the same report.
Asset: UK wealth management platform serving mass-affluent and HNW clients
Canaccord Wealth UK provides investment management and financial advisory services to mass-affluent and high-net-worth clients, according to Private Equity Wire. The report said this market has attracted significant private equity interest amid continued consolidation.
UK wealth M&A reference point cited in the report
Earlier this year, NatWest agreed to acquire Permira and Warburg Pincus-backed Evelyn Partners for £2.7bn, according to Private Equity Wire. The publication described that deal as highlighting demand for established UK wealth management platforms.
Centerbridge activity and market reaction in Canada
Centerbridge has been particularly active in European financial services and led an investment in Santander-backed UK payments company Ebury in April, according to Private Equity Wire. The firm is also exploring a potential sale of German digital consumer finance lender Auxmoney, according to previous Bloomberg reporting cited by Private Equity Wire.
Canaccord’s shares rose as much as 6.5% in Toronto following news of the discussions, giving the group a market capitalisation of approximately C$1.5bn, according to Private Equity Wire.
