Dundee sells retail business to Euro PacificBy Andrew Rickard | January 25 2016 01:20PM
Euro Pacific Canada is buying Dundee Goodman Private Wealth (DGPW), the retail division of Dundee Securities Ltd.
Dundee announced on Jan. 21 that 78 investment advisors and related support teams will be moving from DGPW to Euro Pacific, taking about $3.5 billion of client assets with them. As part of the transaction, Euro Pacific is also acquiring Dundee Securities’ separately managed account program as well as the employees related to Dundee's fixed income, foreign exchange, and insurance businesses.
The deal will not only increase Euro Pacific's assets under management to about $4.2 billion, but it will also triple its size to 100 investment advisors and add offices in Toronto, Montreal, Ottawa, Calgary, Vancouver, and Victoria. The financial terms were not disclosed, but Dundee anticipates that the sale will generate approximately $40 million of additional liquidity and ongoing cost savings, which it says it will use to support other strategic priorities.
“The sale of Dundee Goodman Private Wealth will enable us to unlock capital and redirect significant resources to the growth of our alternative asset management and private investment counsel lines of business,” says Richard Mcintyre, executive vice president and head of Dundee Global Investment Management. “Dundee expects to realize significant annualized savings by lowering our operating costs, while at the same time, providing an excellent home at Euro Pacific for our investment advisors to continue servicing their clients.”
Provided it receives regulatory approval, the purchase is expected to close during the first quarter of this year. All DGPW advisors and other employees across Canada will remain in their current offices, and Dundee points out that both firms already use Fidelity Clearing Canada ULC as carrying broker and custodian.
Once the transaction is complete, Dundee advisors will do business under the Euro Pacific brand. "Dundee Securities Ltd. will continue to operate its investment banking, research and institutional sales and trading business under the name of Dundee Capital Markets and will not be impacted by this transaction," concludes the statement from Dundee.