IGM Financial buys into Personal Capital wealth management firm, gets board seat
Posted May 19, 2016 08:17:13 AM.
Last Updated May 19, 2016 09:20:07 AM.
This article is more than 5 years old.
WINNIPEG – One of Canada’s largest mutual fund operators is investing up to US$75 million to buy into a U.S. digital wealth adviser.
IGM Financial Inc. (TSX:IGM) had already paid US$50 million to acquire a 10 per cent stake in Personal Capital Corp.
The Winnipeg-based fund and wealth management company — part of the Power group of companies — will spend a further US$25 million over the next 12 months to increase its stake in Personal Capital to 15 per cent.
Personal Capital was founded by its chief executive officer, Bill Harris, whose previous experience include stints as CEO of Intuit — maker of the TurboTax and Quicken software — and later PayPal, an electronic payments system.
It recently surpassed US$2 billion of assets under management, with about one-third of that from clients with at least US$1 million invested with the San Francisco-based company. On average, it manages US$300,000 per client.
IGM Financial’s president and CEO, Jeff Carney, will join Personal Capital’s board of directors.
“This opportunity will enable us to participate in the emerging digital wealth management industry in the United States,” Carney said in a statement Thursday.
