Canada Life purchases wealth manager IPC from sister company IGM Financial

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The deal will see Canada Life add more than 650 investment advisers who manage about $32-billion in assets

At the same time, IGM will spend about US$622-million to become the second-largest shareholder in independent financial advisory firm Rockefeller Capital Management, while Connecticut-based Viking Global Investors LP will remain the lead shareholder. IGM has secured short-term financing of $850-million, of which $550-million is a term loan and $300-million a bridge facility.

IGM will obtain two board seats, as well as the opportunity to increase its equity interest in the future. The Rockefeller family – which opened the first single family office in the United States in 1882 – will also increase its current investment in Rockefeller Capital by an undisclosed amount.“Purchasing an ownership stake in Rockefeller is a risk-smart entry to the U.S. market,” IGM chief executive James O’Sullivan said in a statement.

Members of the Rockefeller family and the Desmarais family have had long-standing personal relationships over the decades. In recent years, Rockefeller Capital Management has worked with Power Corp. of Canada and its group of companies on numerous occasions, including advising on acquisitions.Great-West Life has completed a handful of acquisitions in recent years as the insurer continues to expand its reach into the wealth management industry – predominately in the United States.

Three months later, Empower bought the retirement business of Massachusetts Mutual Life Insurance Co., adding US$167-billion in assets. In July, 2020, Empower boosted its U.S. presence further, with a US$4.45-billion deal to buy the retirement business of Prudential Financial Inc. The addition of Investment Planning Counsel is Canada Life’s first purchase of a Canadian securities-licensed dealer. Canada Life CEO Paul Mahon told The Globe he has“People obviously think about our roots being in life insurance, but the reality is Canada Life is a diversified financial services provider in Canada,” Mr. Mahon said. “So, this is really building an even stronger wealth management proposition where we can take more of a leadership position.

 

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