Rockefeller Capital Unloads 20.5% Stake for $622M to Canadian Wealth Manager IGM Financial
Rockefeller Capital Management, a wealth and investment advisory firm that emerged from the Rockefellers’ family office and caters to high-net-worth and ultra-high-net-worth clients, has sold about 20.5% of its business, valued at $3 billion, to Canadian wealth and asset manager IGM Financial Inc. for roughly $622 million and two board seats.
To fund the transaction, Winnipeg, Manitoba-based IGM has secured short-term financing of C$850 million, including a C$550 million term loan and a C$300 million bridge facility.
The deal, which received backing from the Desmarais family (who are majority owners, through the Desmarais Family Residuary Trust, of IGM’s parent company, Power Corporation of Canada), makes IGM the second largest shareholder after Viking Global Investors.
As part of the transaction, the Rockefeller family is increasing its investment in Rockefeller Capital Management, which managed more than $100 billion in assets as of the end of March. The deal also serves as a catalyst to deliver on its plans to significantly expand its US wealth management operations.
“This is a compelling strategic opportunity,” IGM Financial CEO James O’Sullivan said. “Rockefeller is a truly iconic brand with a proven growth model.”
Andre Desmarais, deputy chairman of Power Corporation of Canada, and O’Sullivan are joining Rockefeller’s board.
“We look forward to partnering with IGM to accelerate our growth in the U.S. market and also explore opportunities to leverage the best of our respective firms to pursue global growth,” said Gregory Fleming, CEO, Rockefeller Capital Management.