Financier iA acquires RF Capital Group in a $597 million transaction
iA Financial Acquires RF Capital: Boosting Wealth Management Scale and Capabilities in Canada
iA Financial Corporation has announced its acquisition of RF Capital Group, a leading independent wealth management company based in Canada. The deal, valued at $597 million, is set to significantly enhance iA's presence in the high-net-worth segment and boost its wealth management scale in Canada.
The strategic rationale behind the acquisition centers on expanding iA's reach in target client segments, particularly high-net-worth clients served by RF Capital's Richardson Wealth brand. The acquisition adds over $40 billion in assets under administration (AUA), significantly boosting iA’s advisory network to about $175 billion AUA.
Stephan Bourbonnais, Executive Vice-President of Wealth Management at RF Capital, expressed excitement about the acquisition, citing opportunities in technology, product innovation, and operational scale. Dave Kelly, President and CEO of RF Capital, recommended the transaction, stating it brings excellent value to all stakeholders and provides a great home for advisors, employees, and clients.
The advisors at RF Capital will continue to operate independently under the Richardson Wealth brand, backed by the financial strength and stability of iA Financial Group. This independence will allow them to remain dedicated to delivering trusted, personalized advice to their clients.
Key strategic objectives include enhancing a scalable distribution model by combining complementary advisory platforms, achieving cost synergies through consolidation of third-party providers, integrating corporate functions, and aligning technology, AI capabilities, and digital platforms. The transaction is expected to be earnings neutral in the first year and accretive thereafter, increasing core earnings per share by at least $0.15 in the second year.
The deal strengthens iA Wealth’s competitive positioning as a top independent wealth manager outside traditional banks, driving greater scale and efficiency. It supports growth in the advice-based wealth management market by empowering advisors with best-in-class resources while preserving their independence, a valued aspect in the Canadian advisory space.
By combining resources and expertise, the acquisition is likely to accelerate innovation and enhance client service offerings, potentially prompting further consolidation or strategic moves among Canadian wealth management firms.
Stikeman Elliott is acting as legal counsel to Richardson Financial Group Limited, while CIBC Capital Markets is acting as the exclusive financial advisor to RF Capital. Cormark Securities Inc. is providing a fairness opinion to the Special Committee and the Board of Directors of RF Capital. Goodmans is acting as RF Capital's legal counsel, and McCarthy Tétrault is acting as legal counsel to iA Financial Group.
iA Financial's acquisition of RF Capital strategically enhances its wealth management footprint with a focus on sustainable growth through scale, complementary advisory networks, and technology, thereby impacting Canada’s wealth sector by bolstering competition and service capabilities in the high-net-worth advisory market.
In a separate development, Stikeman Elliott is acting as legal counsel to Richardson Financial Group Limited, as they continue to provide comprehensive, client-focused financial advisory services tailored to the high-net-worth market, with assets under administration exceeding $40 billion.
[1] iA Financial Corporation News Release, 15 March 2023 [2] Cision PR Newswire, 15 March 2023 [3] The Globe and Mail, 15 March 2023 [4] Canadian Underwriter, 15 March 2023
- The acquisition of RF Capital by iA Financial Corporation is a strategic move to expand their business operations and investing efforts, with a focus on the high-net-worth segment, aiming to improve their wealth management capabilities in Canada.
- The integration of RF Capital's advisory network into iA Financial's will boost their financial strength, offering opportunities for technology advancements, product innovation, and operational scale, ultimately benefiting both advisors and clients.
