Deal to snap up firm with $27 billion in AUM bolsters bank's wealth management expansion
Bank of Montreal is significantly expanding its footprint in the Canadian investment counsel market with the purchase of Burgundy Asset Management Ltd., an independent firm that oversees $27 billion in client assets. The acquisition marks another milestone in BMO’s long-term strategy to bolster its wealth management business of high-net-worth and ultra-high-net-worth clients.
The all-share deal, valued at approximately C$625 million, includes a C$125 million performance-based holdback contingent on Burgundy maintaining certain asset levels for 18 months after the deal closes. The transaction, which remains subject to regulatory approval, is expected to be finalized by the end of 2025.
Burgundy, headquartered in Toronto with additional offices in Vancouver and Montreal, will operate under the BMO Wealth Management umbrella. Its existing leadership, including Chief Executive Officer Robert Sankey and co-founders Tony Arrell and Richard Rooney, will remain in place - a move designed to ensure continuity for clients and staff alike.
“This acquisition allows us to continue building our heritage as a client-first wealth manager,” said Deland Kamanga, Group Head of Wealth Management at BMO Financial Group. “
Strategic rationale for financial advisors
For financial advisors watching the shifting terrain of Canadian wealth management, BMO’s move signals a deepening focus on the ultra-high-net-worth segment — an area that offers stable fee income and relationship-driven growth potential.
The addition of Burgundy’s $27 billion in assets - representing a valuation multiple of approximately 2.3% of AUM - enhances BMO’s capabilities in discretionary portfolio management and strengthens its institutional-grade offering for family offices, endowments, and pension clients. Advisors may view this as a sign that larger financial institutions continue to prioritise client retention through personalized service, even as consolidation reshapes the industry.
Retention of Burgundy’s executive team and investment personnel is being touted as key to minimizing disruption and preserving the firm’s culture. Tony Arrell, Burgundy’s chairman and co-founder, commented, “We’ve always built Burgundy with longevity in mind - serving clients over generations. Partnering with BMO ensures we have the scale and support to honour that commitment.”
BMO’s announcement follows years of similar moves by Canadian banks aiming to scale their investment counsel capabilities. In recent memory, Scotiabank acquired Jarislowsky Fraser and MD Financial to expand its institutional and physician-focused wealth businesses. Last year, CI Financial went private in a $4.7 billion deal backed by foreign capital - another sign of heightened interest in Canada’s maturing wealth management market.
For BMO, the Burgundy acquisition complements existing strengths in its private wealth division, which spans 36 U.S. states and employs over 6,000 across North America. In February, the bank was named Canada’s Best Private Bank for Ultra-High-Net-Worth clients.
Wealth management remains one of the highest-returning business lines for Canadian banks. BMO’s ability to cross-sell banking, lending, and estate planning services to Burgundy’s client base could drive meaningful synergies.
Integration risks and market watchpoints
Despite the strategic alignment, financial advisors and market observers will note some potential risks. Integration of systems and staff - particularly across firms with distinct cultures - can pose challenges. Moreover, given that 20% of the deal value is tied to asset retention, any post-acquisition client attrition could affect the final price paid.
There are also broader macroeconomic and regulatory dynamics at play. Canadian financial institutions remain under scrutiny from regulators overseeing capital adequacy and merger activity, and any delays in approval could shift the closing timeline.
Still, BMO’s scale, global reach, and previous M&A experience offer reassurance that the transition will be carefully managed.
As the deal progresses toward closing, financial advisors may see this as a bellwether of continued consolidation in the Canadian wealth space - and a cue to evaluate how scale and specialization will shape the future of high-touch, high-value investment advice.
