Canaccord Genuity

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Canaccord Genuity Group Inc.
Public
Traded asTSXCF
LSECF.
IndustryFinancial services
Founded1950 (1950)[1]
FounderPeter Brown[2]
Headquarters,
Area served
Worldwide
Key people
Daniel Daviau (Chief executive officer)
Servicesinvestment banking
private banking
wealth management
RevenueIncrease C$ 855 million (FY 2014)[3]
Increase C$ 51 million (FY 2014)[3]
AUMIncrease C$ 31.3 billion (FY 2014)[4]
Total assetsIncrease C$ 5.01 billion (FY 2014)[3]
Total equityIncrease C$ 1.38 billion (FY 2014)[3]
Number of employees
2,031 (2013)
Divisions
  • Wealth Management
  • Global Capital Markets
Websitecanaccordgenuity.com

Canaccord Genuity Group Inc. is a global, full-service investment banking and financial services company that specializes in wealth management and brokerage in capital markets. It is the largest independent investment dealer in Canada.[5] The firm focuses on growth companies, with operations in 10 countries worldwide and the ability to list companies on 10 stock exchanges. Canaccord Genuity, the international capital markets division, is based in Canada, with offices in the US, the UK, France, Germany, Ireland, Hong Kong, China, Singapore, Australia and Barbados.[6][7]

Canaccord Genuity provides mergers and acquisitions, corporate finance, restructuring, debt advisory and strategic advice for corporate, government and private equity clients globally. The firm's practice covers a broad range of industries including: aerospace & defence, agriculture, clean technology & sustainability, consumer & retail, energy, financials, health care & life sciences, infrastructure, leisure, media & telecommunications, metals & mining, real estate & hospitality, technology, transportation & industrials, and private equity.

History[edit]

1950 Hemsworth, Turton & Co. Founded[edit]

The company was established in 1950 as Hemsworth, Turton & Co., a Western Canadian venture capital firm.[8]

2004 Canaccord Capital IPO to 2009[edit]

In 2004 Canaccord Capital went public on the Toronto Stock Exchange with an IPO price of $10.25 and initial purchase offering of $70-million.[1]

In 2006 Canaccord Capital purchased Adams, Harkness & Hill Financial Group Inc., a Boston-based investment dealer. The firm renamed this US division Canaccord Adams.

In 2009 Canaccord Capital was renamed Canaccord Financial.

2010 Canaccord Financial acquired Genuity Capital[edit]

In 2010, Canaccord Financial acquired Genuity Capital Markets in a cash and share deal worth about $286 million.[9] Genuity Capital Markets, founded in 2005, had 135 employees with offices in Canada and the U.S. and was a leader in independent advisory and restructuring in Canada.[9]

2011 UK Expansion through Acquisition[edit]

In 2011 Canaccord Financial acquired Collins Stewart Hawkpoint for $400m acquiring "an independent financial advisory firm with research, trading and wealth management operations."[10][11]

In 2012 Canaccord Financial acquired Eden Financial, a London-based wealth management business for private client investment management.[12]

2013 Canaccord Financial was renamed Canaccord Genuity Wealth Management[edit]

In 2013, Canaccord Financial was renamed Canaccord Genuity Wealth Management.[13]

In September 2017, Canaccord Genuity announced complete acquisition of Hargreave Hale Ltd.[14]

Business divisions[edit]

The two units of Canaccord Genuity are "private client services, catering to well-heeled individuals, and Global Capital Markets, serving corporate and institutional clients."[1]

Canaccord Genuity Wealth Management[edit]

$31.3 billion in assets under management in Canada, the UK & Europe, and Australia.[15] Canaccord Genuity Wealth Management and Credit Suisse Asset Management Partnership: In April 2016, Canaccord Genuity Wealth Management announced a strategic partnership with Credit Suisse Asset Management (CSAM). The partnership will provide Canaccord's high-net-worth investors with portfolio management tools and exclusive access to a new suite of high-net-worth products.[16]

Canaccord Genuity Global Capital Markets[edit]

Includes (1) Investment Banking - M&A, Corporate Finance, Restructuring, Debt Advisory, Strategic Advice (2) Research, (3) Sales and Trading and (4) Fixed Income.

Transactions History[edit]

Landmark transactions have included advising Amaya Gaming Group in its $4.9 billion acquisition of PokerStars and Full Tilt Poker, advising Yamana Gold's $3.9 billion joint acquisition with Agnico Eagle of Osisko Mining, advising Primaris REIT's hostile defence and $5.0 billion sale to H&R REIT and KingSett Capital led consortium, advising Viterra's $6.1 billion sale to Glencore,[17] and advising the $2.2 billion cross-border sale of Daylight Energy to Sinopec, a unit of China Petrochemical Corp.[18] It has also advised on GLENTEL's $670 million sale to Bell Canada in 2014, and the sale of Canada Goose to Bain Capital. In 2012, it advised on Extorre Gold Mines' $404 million sale to Yamana Gold.[19]

In 2013, Canaccord Genuity team put together a consortium of major investors, including Schroders and Threadneedle Investments, in participating in a takeover bid proposal for 316 bank branches of the Royal Bank of Scotland (RBS). Two buyout firms, Apollo Management and JC Flowers, also submitted a joint offer. In 2011, the firm advised the $3.2 billion sale of Converteam from Barclays Private Equity and LBO France to General Electric, growing the GE Power Conversion business.[20] In the same year, Canaccord Genuity also advised the Bank of Ireland on the disposal of a c.£1.3bn UK commercial real-estate loan book to California-based Kennedy Wilson and institutional partners for a consideration of c.£1.07bn, over 80% of par value despite both the poor UK commercial real estate and lending market conditions at the time.

In 2006, Genuity Capital Markets co-advised Advanced Micro Devices (AMD) on its $5.4 billion acquisition of ATI Technologies. Genuity also advised General Electric (GE) on multiple acquisitions, including the $3.8 billion disposal of GE Advanced Materials to Apollo Global Management, $484 million buyout of 49.9% of GE Toshiba Silicones, $602 million buyout of 29.9% of GE Bayer Silicones, $435 million acquisition of Biacore AB, and $230 million acquisition of Radstone.[21][22]

As for restructuring mandates, Canaccord Genuity advised Yellow Media on its $2.7 billion debt recapitalization in 2012.[23]

Leadership[edit]

Some of Genuity's former partners and current executives include:

  • David J. Kassie (former Chairman and CEO of CIBC World Markets and founder of Genuity Capital Markets)
  • Daniel Daviau (former Head of Investment Banking at CIBC World Markets and founding member of Genuity Capital Markets)
  • Calin Rovinescu (current CEO of Air Canada and founding partner of Genuity Capital Markets)
  • Alexis de Rosnay (former co-head of UK Investment Banking and Vice Chairman of Lazard)

References[edit]

  1. ^ a b c Stueck, Wendy (22 April 2018). "Acquisitive Canaccord on prowl for new brokers" (Report on Business). Vancouver: The Globe and Mail. Globe and Mail Inc. Retrieved 13 September 2019.
  2. ^ Alexander, Doug (28 March 2012). "Canaccord founder Peter Brown to step down". Canada: Financial Post. Postmedia Network Inc. Retrieved 13 September 2019.
  3. ^ a b c d "Stock Market Quotes | Company Financials, Financial Information". Web.tmxmoney.com. Retrieved 2015-03-27.
  4. ^ "Choose Canaccord Genuity - Canaccord Genuity Wealth Management". www.canaccordgenuity.com.
  5. ^ Humphreys, Tommy (19 April 2013). "Canaccord Financial CEO Paul Reynolds on the future of his firm and Canada's natural resources sector". Canada: CEO.CA. CEO.CA. Retrieved 27 March 2015.
  6. ^ "Bivinteractive". Bivinteractive.com. Retrieved 2015-03-27.
  7. ^ "Canaccord Genuity Inc.: Private Company Information - Businessweek". Businessweek.com. Retrieved 2015-03-27.
  8. ^ "Acquisitive Canaccord on prowl for new brokers". The Globe and Mail. Retrieved 2016-01-28.
  9. ^ a b Lam, Eric (4 March 2010). "Canaccord Financial to buy Genuity for $286 mln". Toronto: National Post. Postmedia Network Inc. Retrieved 27 March 2015.
  10. ^ Shecter, Barbara (15 December 2011). "Canaccord clinches U.K. expansion with $400-million deal". Canada: Financial Post. Postmedia Network Inc. Retrieved 13 September 2019.
  11. ^ Dunkley, Jamie (15 December 2011). "Collins Stewart takeover points way to the future for broking". London: The Telegraph. Telegraph Media Group Limited. Retrieved 13 September 2019.
  12. ^ Shecter, Barbara; Critchley, Barry (24 September 2012). "Canaccord Financial to close 16 branches". Canada: Financial Post. Postmedia Network Inc. Retrieved 13 September 2019.
  13. ^ Trudeau, Michael (1 May 2013). "Collins Stewart, Eden rebranded under Canaccord umbrella" (Companies). United Kingdom: FTAdviser.com. Nikkei. Retrieved 19 September 2019.
  14. ^ "Canaccord Genuity completes acquisition of Hargreave Hale - Article - investmentexecutive.com". investmentexecutive.com. Retrieved 2017-10-10.
  15. ^ "Canaccord Genuity Group Inc. reports third quarter fiscal 2015 results". Stockhouse.com. Retrieved May 6, 2015.
  16. ^ "Canaccord Genuity Wealth Management (Canada) and Credit Suisse Asset Management announce an exclusive strategic partnership". Retrieved April 4, 2016.
  17. ^ Hasselback, Drew (31 January 2013). "Viterra's sale to Glencore involved a lot of moving parts". Canada: Financial Post. Postmedia Network Inc. Retrieved 27 March 2015.
  18. ^ Krauskopf, Lewis; Xu, Wan (10 October 2011). "Sinopec to buy Canada's Daylight Energy for $2.2-billion" (Energy and Resources). New York, N.Y., United States: The Globe and Mail. Globe and Mail Inc. Retrieved 27 March 2015.
  19. ^ Hill, Liezel (18 June 2012). "Yamana Gold to Buy Extorre for $404 Million to Add Mine" (Deals). Bloomberg News. Bloomberg L.P. Retrieved 6 May 2015.
  20. ^ Layne, Rachel (29 March 2011). "General Electric Agrees to Buy Converteam for $3.2 Billion" (Deals). Bloomberg News. Bloomberg L.P. Retrieved 27 March 2015.
  21. ^ Padraic Cassidy. "Apollo pays $3.8B for control of GE materials unit". MarketWatch.
  22. ^ "News Article". Ddn-news.com. Retrieved 2015-03-27.
  23. ^ "Yellow Media Inc. Announces Recapitalization Transaction" (PDF). Corporate.yp.ca. Retrieved 2015-03-27.