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Centerbridge and Mubadala near £1bn Canaccord Wealth deal
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 a report by Bloomberg.
The consortium is negotiating with the Canadian financial services group after a period of exclusive discussions with private equity firms Warburg Pincus and Clayton, Dubilier & Rice (CD&R) expired, Bloomberg reported.
A deal could be announced in the coming weeks, although negotiations remain ongoing and there is no certainty that an agreement will be reached.
Canaccord Wealth UK provides investment management and financial advisory services to mass-affluent and high-net-worth clients, a market that has attracted significant private equity interest amid continued consolidation.
Earlier this year, NatWest agreed to acquire Permira and Warburg Pincus-backed Evelyn Partners for £2.7bn, highlighting demand for established UK wealth management platforms.
Centerbridge has been particularly active in European financial services, leading an investment in Santander-backed UK payments company Ebury in April. The firm is also exploring a potential sale of German digital consumer finance lender Auxmoney, according to previous Bloomberg reporting.
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.
Source: Private Equity Wire