Correct Success: Canaccord Genuity Group Inc. Announces That HPS Will Invest in its UK Wealth Management Business

Proceeds for use to fund a return of capital from the UK Wealth Administration division to Canaccord Genuity Group Inc.

TORONTO, Feb. 3, 2021 /PRNewswire/ – Canaccord Genuity Group Inc. (TSX:CF), (the “Firm”) publicizes that HPS Funding Companions, LLC (“HPS”), on behalf of funding accounts and funds it manages has agreed to put money into the Firm’s UK wealth administration division. Topic to regulatory approval and different customary closing circumstances, HPS will purchase Convertible Most well-liked Shares (the “Convertible Most well-liked Shares”) within the quantity of £125 million (C$219 million¹) to be issued by Canaccord Genuity Wealth Group Holdings (Jersey) Restricted (“CGWM UK”), the mother or father firm of the Firm’s wealth administration working subsidiaries within the UK, the Channel Islands and within the Isle of Man (the “Transaction”).

HPS is a number one world funding agency that seeks to offer artistic capital options and generate enticing risk-adjusted returns for its purchasers. HPS has over US$68 billion of property below administration invested in each massive and small corporations throughout a wide range of industries and sectors.

The web money proceeds from the sale of the Convertible Most well-liked Shares of roughly £120 million (C$210 million) shall be distributed by CGWM UK to the Firm and utilized by the Firm for company functions to optimize shareholder worth.

There shall be no modifications to the administration or operations of CGWM UK as we proceed to hunt to broaden and develop that enterprise via each inside improvement and acquisitions. HPS expects to proceed to be a strategic and monetary associate to the enterprise on future acquisitions and progress alternatives.

“Partnering with HPS supplies us with a chance to construct upon the distinctive progress that our UK wealth administration enterprise has achieved below David Esfandi’s management,” mentioned Dan Daviau, President & CEO of Canaccord Genuity Group Inc. “The proceeds from this funding present us with choices and adaptability to redeploy capital in the direction of methods to advance our firmwide progress, improve our long-term profitability, and supply optimum returns for our shareholders. “

David Esfandi, CEO of CGWM UK provides, “We’re delighted to have present in HPS a long-term associate to additional our strategic progress ambitions and consolidate CGWM UK’s place as one of many main wealth administration companies within the UK and Crown Dependencies. Recognising the power and potential of our enterprise, this important funding enhances our capability to put money into our shopper providing and our folks and speed up the longer term progress of CGWM UK to learn our purchasers’ evolving wants.”

The principal worth of the Convertible Most well-liked Shares is £125 million (C$219 million). On an as transformed foundation the Convertible Most well-liked Shares signify a 21.93% fairness curiosity in CGWM UK. Cumulative dividends are payable by CGWM UK on the Convertible Most well-liked Shares on the better of an annual 7.5% coupon and the proportionate share that such shares would obtain, on an as transformed foundation, in respect of dividends paid to the Firm by CGWM UK. The Convertible Most well-liked Shares carry customary minority rights in respect of CGWM UK governance and monetary issues and name protections inside the first 5 years. Additional data in respect of the phrases of the Convertible Most well-liked Shares is supplied within the subsequent occasion be aware within the Firm’s Q3 fiscal 2021 unaudited interim condensed consolidated monetary statements and in its MD&A for the interval ending on December 31, 2020.

Completion of the Transaction would require the approval of the UK Monetary Conduct Authority and every of the Monetary Companies Commissions/Authorities of Jersey, Guernsey and the Isle of Man, and is anticipated to happen within the first quarter of Firm’s fiscal 12 months.

Spencer Home Companions LLP and Canaccord Genuity Restricted acted as monetary advisers and Travers Smith LLP acted as authorized adviser to Canaccord Genuity Group Inc., whereas Rothschild & Co acted as monetary adviser to HPS in reference to the Transaction.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

This press launch could comprise “forward-looking data” as outlined below relevant securities legal guidelines (“forward-looking statements”). These statements relate to future occasions or future efficiency and mirror administration’s expectations, beliefs, plans, estimates, intentions and comparable statements regarding anticipated future occasions, outcomes, circumstances, efficiency or expectations that aren’t historic details, together with enterprise and financial circumstances and Canaccord Genuity Group’s progress, outcomes of operations, efficiency and enterprise prospects and alternatives. Such forward-looking statements mirror administration’s present beliefs and are based mostly on data at the moment accessible to administration. In some circumstances, forward-looking statements might be recognized by terminology corresponding to “could”, “will”, “ought to”, “count on”, “plan”, “anticipate”, “consider”, “estimate”, “predict”, “potential”, “proceed”, “goal”, “intend”, “might” or the damaging of those phrases or different comparable terminology. By their very nature, forward-looking statements contain inherent dangers and uncertainties, each normal and particular, and quite a few components might trigger precise occasions or outcomes to vary materially from the outcomes mentioned within the forward-looking statements. In evaluating these statements, readers ought to particularly think about varied components that will trigger precise outcomes to vary materially from any forward-looking assertion. These components embrace, however are usually not restricted `to, market and normal financial circumstances, the character of the monetary providers business and the dangers and uncertainties mentioned on occasion within the Firm’s interim condensed and annual consolidated monetary statements, its annual report and its annual data kind (“AIF”) filed on www.sedar.com in addition to the components mentioned within the sections entitled “Danger Administration” and “Danger Components” within the AIF, which embrace market, liquidity, credit score, operational, authorized and regulatory dangers. Materials components or assumptions that had been utilized by the Firm to develop the forward-looking statements contained on this press launch embrace, however are usually not restricted to, these set out within the Fiscal 2020 Outlook part within the annual MD&A and people mentioned on occasion within the Firm’s interim condensed and annual consolidated monetary statements, its annual report and the AIF filed on www.sedar.com. The previous record will not be exhaustive of all attainable threat components that will affect precise outcomes. Readers are cautioned that the previous record of fabric components or assumptions will not be exhaustive. Though the forward-looking statements contained on this press launch are based mostly upon what administration believes are cheap assumptions, there might be no assurance that precise outcomes shall be in keeping with these forward-looking statements. The forward-looking statements contained on this press launch are made as of the date of this press launch and shouldn’t be relied upon as representing the Firm’s views as of any date subsequent to the date of this press launch. Besides as could also be required by relevant regulation, the Firm doesn’t undertake, and particularly disclaims, any obligation to replace or revise any forward-looking statements, whether or not on account of new data, additional developments or in any other case.

ABOUT HPS INVESTMENT PARTNERS LLC

HPS Funding Companions is a number one world funding agency that seeks to offer artistic capital options and generate enticing risk-adjusted returns for our purchasers. We handle varied methods throughout the capital construction that embrace syndicated leveraged loans and excessive yield bonds to privately negotiated senior secured debt and mezzanine investments, asset-based leasing and personal fairness. The size and breadth of our platform affords the flexibleness to put money into corporations massive and small, via normal or custom-made options. At our core, we share a standard thread of mental rigor and self-discipline that allows us to create worth for our purchasers, who’ve entrusted us with over $68 billion of property below administration as of January 2021. For extra data, please go to www.hpspartners.com.

ABOUT CANACCORD GENUITY WEALTH MANAGEMENT

The wealth administration operations of the Canaccord Genuity Group (Canaccord Genuity Wealth Administration) present complete wealth administration options and brokerage providers to particular person traders, non-public purchasers, charities and intermediaries via a full suite of providers tailor-made to the wants of purchasers in every of its markets. Canaccord Genuity Wealth Administration has Funding Advisors (IAs) and professionals in Canada, the UK, Jersey, Guernsey, the Isle of Man and Australia and has advisors in Canada who’re registered within the U.S. Since 2016, Canaccord Genuity has materially invested to assist the expansion of its wealth administration companies in all geographies. On account of this progress, shopper property have elevated considerably, and Canaccord Genuity Wealth Administration has turn into a secure and important contributor to firmwide profitability and earnings.

ABOUT CANACCORD GENUITY GROUP INC.

By way of its principal subsidiaries, Canaccord Genuity Group Inc. (the “Firm”) is a number one unbiased, full-service monetary providers agency, with operations in two principal segments of the securities business: wealth administration and capital markets. Since its institution in 1950, the Firm has been pushed by an unwavering dedication to constructing lasting shopper relationships. We obtain this by producing worth for our particular person, institutional and company purchasers via complete funding options, brokerage providers and funding banking providers. The Firm has wealth administration workplaces situated in Canada, the UK, Guernsey, Jersey, the Isle of Man and Australia. The Firm’s worldwide capital markets division operates in North America, UK & Europe, Asia, Australia and the Center East.

Canaccord Genuity Group Inc. is publicly traded below the image CF on the TSX.

___________________

¹ Approximate Canadian Greenback equal based mostly on present alternate price

SOURCE Canaccord Genuity Group Inc.