Brooks Macdonald Group has entered into a binding agreement to sell its wholly owned subsidiary, Brooks Macdonald Asset Management (International) and its subsidiaries (BMI), to Canaccord Genuity Wealth Management.

Canaccord will acquire BMI for a total consideration of up to £50.85m, including an initial consideration of £28m payable in cash upon completion.

The deal is expected to complete by March 2025 and is subject to regulatory approvals.

Alongside the initial consideration of £28m, the deal contains a contingent consideration of up to £22.85m, payable in cash two years post-deal completion.

This contingent consideration will be dependent on the revenue performance of the BMI business.

Brooks Macdonald Group is being advised by Raymond James Financial International Limited, with Travers Smith LLP acting as legal adviser, in relation to the sale of BMI.

Brooks Macdonald Group said the proceeds of the initial cash consideration will allow for focused investment in its core proposition and will enhance its ability to capitalise on the “structural opportunities” in the UK, to grow organically and through targeted M&A.

As at 30 June, BMI had £2.3bn of funds under management (FUM), with a revenue of £19.9m and £3.3m of underlying profit before tax in the 2024 financial year.

The sale was the conclusion of Brooks Macdonald Group’s strategic review, with various options for BMI bring considered as part of this review.

Its board concluded that the sale of BMI was in the best interests of the group as it simplified its operations to focus on its core activities of investment management and financial planning in the UK.

Brooks Macdonald Group said it would work with Canaccord to ensure a smooth transition for existing BMI clients.

BMI will be acquired by Canaccord with an agreed level of regulatory capital, with any surplus paid for at completion.

Commenting on the announcement, Brooks Macdonald CEO designate and chief financial officer, Andrea Montague, said: “We are pleased to announce the sale of BMI to Canaccord as their presence and understanding of the local markets will provide a strong foundation for the future growth and development of the business.

“I would like to thank all our BMI colleagues for their commitment to their clients and professionalism. We wish them all the best for the future.”

Canaccord Genuity Wealth Management CEO, David Esfandi, commented: “BMI is a quality business and an excellent strategic fit for our international division. This is a mutually beneficial transaction that will cement Canaccord’s position as a fully-fledged integrated wealth manager.

“Both firms are well-established across the Crown Dependencies, and BMI will also add significant financial planning expertise in our international business. Canaccord has a robust and scalable operating platform with a proven track record of successfully integrating businesses, and we anticipate a smooth process for BMI in 2025.”

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