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Canaccord Genuity enters Scotland with £54m Adam & Co deal

Canaccord Genuity enters Scotland with £54m Adam & Co deal

Canaccord Genuity has entered the Scottish market by buying the private client investment management business of Adam & Company from Royal Bank of Scotland.

The £54m deal is expected to close in September, subject to regulatory approval.

Edinburgh-based Adam & Company manages £1.7bn of assets on a discretionary basis and has seen its assets grow by 45 per cent over the past five years.

Canaccord has bought the investment management arm of Adam & Company, the lending and banking division will be folded into Natwest-owned sister company of RBS, Coutts.

Canaccord Genuity said it would continue to operate the business under the Adam & Company name and that the business’s core client proposition would remain largely unchanged.

The existing direct relationships between clients and portfolio managers would also not be affected, it added.

Graham Storrie, Adam & Company's managing director, will continue with the business in a leadership role.

Portfolio managers and supporting employees who are currently employed by RBS but dedicated to Adam & Company will transfer to Canaccord Genuity.

Canaccord Genuity plans to move Adam & Company staff to a new Edinburgh office.

David Esfandi, chief executive of Canaccord Genuity Wealth Management UK, said: “Entering the Scottish market represents a very important milestone in our long-term growth strategy and we are pleased to be doing so with Adam & Company’s investment management business, a leading regional franchise with a strong cultural fit and a similar client base to our own.

"We are delighted to welcome this team of deeply established investment professionals, and we look forward to supporting their continued growth and commitment to providing the best possible outcomes for their clients.”

In February Canaccord Genuity's UK arm received a £125m investment from private equity firm HPS Investment Partners.

Canaccord Genuity has expertise in the areas of global and small cap equities, ESG and fixed income offerings. It also offers retirement, later life care and inheritance tax planning.

Canaccord Genuity and Adam & Company share operating and technology platform Avaloq and have agreed to migrate business post-takeover.

The two companies expect the transition to Canaccord Genuity to be seamless.

Storrie said: “To build on the success of Adam & Company’s investment management business it was essential to find a buyer who shared our investment philosophy and strategic ambitions for the future.

"I believe that with [Canaccord Genuity], we will be able to offer our clients in Scotland and beyond the continuity and high quality service they deserve, and I am delighted to have the opportunity to continue to lead this business.”

carmen.reichman@ft.com