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Inside Canaccord's surprise £80m Hargreave Hale swoop

Inside Canaccord's surprise £80m Hargreave Hale swoop

Canaccord Genuity Wealth Management's £79.5 million acquisition of Hargreave Hale will give it a 'platform into fund management', chief executive David Esfandi has said. 

The deal, which remains subject to shareholder and regulator approval, was announced yesterday.

Speaking to Wealth Manager, Esfandi said the transaction will give Canaccord a national presence across the UK, taking on Hargreave Hale's nine offices. 

'We would often meet someone who really wanted to join us, who was in Birmingham, but we didn't have an office there. They [Hargreave Hale] have an expanding national presence and it establishes us in the UK,' Esfandi (pictured) explained. 

Once the deal completes, the combined business will have £22.5 billion in assets under management.

'This takes us into the top ten in terms of asset and wealth managers in the country. Our scale goes from £15 billion to £22.5 billion and that couldn't be sniffed at,' Esfandi said. 

Esfandi pointed out the business will have around 26,000 clients and 'will need a considerable workforce to meet their needs'. 

Therefore, he does not anticipate any job cuts or redundancies on the horizon. Instead he will be looking at how to grow some of Hargreave's smaller offices. 

'We will have a very considered phased integration over the medium term,' Esfandi said. 

He stressed that Giles Hargreave, the Citywire AA-rated manager of the Marlborough Special Situations fund, was committed to his role as a fund manager.  

'We're very excited, the people are fantastic. This gives us a few things we didn't have and we also give them a few things,' Esfandi said, highlighting Hargreave's experience will give Canaccord the direct stock investment capability. 

'In the post Mifid II era, where we're trying to get TER as low as possible in an increasingly transparent environment, you want to be able to invest in direct stocks.'

Esfandi also revealed that although it is very early days, if there is an opportunity to expand the fund range, he will take it. 

'This gives us a pivot point and platform into fund management. We have a small and growing funds business'. 

A decision on the branding and whether the Hargreave Hale name will disappear has not been made yet.

Esfandi added that while all the senior leadership from Hargreave Hale are part of Canaccord's growth plans, there has not been specific decisions about roles yet. 

He added the announcement was already proving beneficial for the company. 

'Today one of their clients needed financial planning and was going to a competitor. But they called me and I introduced them to a financial planner. It's a good example of cross selling synergies.' 

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