Deal brings together two leading digital platforms to create $1.6 billion AUM operation
Purpose Advisor Solutions (PAS) is acquiring Wealthsimple for Advisors (W4A) to create a combined $1.6 billion AUM wealth platform.
The cost of the deal was not disclosed but WP understands it is expected to close in the next three to six months. W4A, a subsidiary of Wealthsimple which supports advisors with its fully-integrated digital portfolio and account, has a working relationship with about 500 advisors who are now expected to transition over.
Purpose Advisor Solutions, which is majority owned by Purpose Financial, delivers an end-to-end solution to simplify advisor practices and offers wealth firms and advisors modern and intuitive tools that integrate digital workflows across CRM, portfolio management, reporting, compliance and trading.
Jeff Gans, CEO of PAS, said: “We help advisors succeed with an end-to-end wealth platform solution that gives them the freedom to focus on managing their business and to build deeper, long-term client relationships.
“We're excited to bring together two dedicated, leading advisor businesses to accelerate our technology-enabled offering and deliver a more robust client experience. Both our firms have a common vision to enable advisors to thrive in a digital marketplace. We have spent significant time understanding the needs of holistic wealth advisors – and have delivered CRM, portfolio management, investment and other tools to help them efficiently manage their practices.”
In a statement, the two firms said that combining the two platforms will enable it to “provide one advisor-centric business that will unlock new business possibilities for entrepreneurial advisors and independent investment firms in Canada”.
In particular, PAS believes it will allow its operation to scale and accelerate investments in the future of wealth management technology, providing advisors with access to leading software and digital services, including portfolio management, financial planning, insurance solutions and other banking services.
J-F Courville, CEO Wealthsimple for Advisors and Dave Nugent, Chief Client Officer Wealthsimple for Advisors will join as managing partners of Purpose Advisor Solutions to provide leadership and wealth experience to help drive the business forward.
"We are committed to advancing the advisor industry by elevating the quality and accessibility of services through powerful technology," said J-F Courville, CEO, Wealthsimple for Advisors. "Together with Purpose Advisor Solutions, we can offer a richer, deeper and more focused advisor business that will ultimately have an even greater impact on their businesses and their clients’ lives.”
Gans added: “Now, more than ever, our combined value proposition enhances the options for Canadian advisors and portfolio managers looking for true independence and the ability to streamline their business.”