Few advisers, many acquired assets
Before this acquisition, with an asset under management (ASG) of $ 135 billion, IA already occupied second in the land of wealth managers behind advice Wealth (ASG of $ 146 billion). Thanks to the 40 g $ of ASG of PR, it now takes the lead in the sector.
In addition, the integration of 189 advisers specializing in the management of assets of wealthy customers, spread over 143 teams and 23 offices, brings the total number of AI advisers to Canada to 2,750. (All figures are taken from an internal AI document.)
In Quebec, PR has two offices, in Montreal and Pointe-Claire. The addition of its 28 advisers brings to 900 the number of IA professionals in the province, while contributing to $ 4.0 billion in ASG.
As you can expect, it is in Ontario that the contribution is the most significant, with the addition of
71 Advisers. This expansion increases the total number of professionals to 1,000 and inflates the ASG of $ 16 billion to bring it to $ 71 billion. The average ASG per team amounts to $ 270 million.
Independence and distinction
As much as RF Capital Group underline that PR will retain its independence. “We plan that the transaction allows advisers to maintain the culture and independence specific to heritage Richardson, while benefiting from an improved platform and new growth opportunities”, specifies Dave Kelly, president and chief executive officer of RF Capital Group, via an exchange of email with Finance and investment.
This independence takes the form of an open product architecture, allowing advisers to access a full range of solutions to meet the needs of their customers. It also results in total freedom in the choices of strategic planning and the development of advisers’ practices. The only change, insists Dave Kelly, “is a business affair: best prices, increased distribution, more robust technological infrastructure to support independent advice”.
A third business model for IA
In reality, Pr “brings us a business model that we lacked,” says Stéphan Bourbonnais. So far, IA was doing business under two distinct models:
- On the one hand, IA Investia, a platform dedicated to common funds and the funds negotiated on the stock market;
- On the other, the private wealth management, a full -service brokerage platform.
With Richardson, IA incorporates a strong brand image, specialized in wealth management, and a range of services ranging from financial planning to inheritance planning.
It judges that these three complementary business models will strengthen its appeal to potential recruits and accelerate the growth of its network of advisers. It also relies on synergy gains “between three platforms with open architecture, both in terms of assets and capital markets, insurance and consulting services”, underlines Stéphan Bourbonnais.
A preserved name for 30 months
An intrigue detail: IA will be able to keep the name of heritage Richardson for a period of only 30 months, whereas IA wanted to keep it “for its value and recognition”, confides Stéphan Bourbonnais. It should be anticipated that heritage Richardson is called upon to be absorbed, for example, in the private management of heritage. Stéphan Bourbonnais denies it well: “We want to keep the distinction [de ce réseau]. So a new name is called to emerge. This name will be determined with the help of even Richardson employees.
In addition to the operational advantage that the size of AI offers to PR, the acquisition is accompanied by a crowd of contributions, in particular in economic expertise, in compliance, and especially in technology. “Technology is a challenge for everyone in the industry,” recognizes Stéphan Bourbonnais. There are systems that we have developed for one of our business lines and of which Richardson wanted. We thus offer them the possibility of accelerating their development. Thus, for three projects that PR is considering, he could use work environments already developed by AI. “And the beauty of the case is that no data conversion is necessary,” says Stéphan Bourbonnais. We keep the information as they are with current systems. »»
According to Dave Kelly, the reaction on the part of all the players on the side of RF Capital Group and PR is “disproportionately positive”. We can believe that this perception will continue if we judge by the IA roadmap in its acquisition of Mobilier Banque Laurentian value in August 2024. “A great success! Lance Stéphan Bourbonnais, with a retention of 100 % of the advisers, distributed in around twenty teams, who have been absorbed in the model of private wealth management. They are excessively satisfied with support and technologies. »»
Now the purchase of PR is not a “acquisition”, maintains Stéphane Bourbonnais, but an “elevation”.
