Canada-based financial services group Canaccord Genuity is in early discussions with potential bidders – including private-equity firms CVC Capital Partners and Advent International – regarding the possible sale of its UK-based wealth-management business Canaccord Wealth, according to a report by Reuters citing people familiar with the matter.
The UK business, which had £38.3bn in assets under management as of the end of June and generated about £78.6m of EBITDA in the 12 months to March, could command a valuation of over £1bn.
Fenchurch Advisory is said to be advising Canaccord, with a formal process potentially kicking off later this quarter.
For dealmakers, the potential transaction underlines ongoing consolidation in the UK wealth-management sector, due to rising demand for wealth services. Canaccord itself has been active in the UK market, having acquired the likes of Cantab Asset Management and Brooks Macdonald Asset Management International in recent years.
