In a seismic shift for Canada’s wealth management sector, Quebec-based iA Financial announced Monday its acquisition of RF Capital Group for $597 million, creating what industry insiders are already calling a new powerhouse in the investment advisory space.
The all-cash transaction values RF Capital at $15 per share—a 46% premium over its Friday closing price—and brings Richardson Wealth’s impressive $37 billion in assets under administration into iA’s expanding wealth management portfolio. The deal, unanimously approved by both companies’ boards, marks iA’s most aggressive move yet to challenge Canada’s big bank dominance in wealth management.
“This strategic acquisition propels us into a leading position within the Canadian independent wealth management sector,” said Denis Ricard, President and CEO of iA Financial, during an investor call. “Richardson Wealth’s established brand presence and highly qualified advisors complement our existing operations perfectly.”
The timing couldn’t be more strategic for iA Financial, which has been methodically building its wealth management division while RF Capital has struggled with profitability despite commanding significant client assets. The acquisition expands iA’s total assets under administration to approximately $145 billion, positioning it as a formidable competitor against bank-owned wealth managers.
For Richardson Wealth’s 170 advisory teams managing approximately 37,000 high-net-worth households, the deal promises enhanced technological capabilities and a broader product shelf. Kish Kapoor, President and CEO of RF Capital, emphasized that the merger would “accelerate our growth trajectory while maintaining the independence our advisors and clients value.”
Market reaction was immediate and decisive. RF Capital shares surged 43% to $14.76 by midday trading, while iA Financial saw its stock climb 2.4%, reflecting investor confidence in the acquisition’s strategic rationale.
The transaction comes amid increasing consolidation in Canada’s wealth management industry, where scale has become essential for profitability. Independent firms have faced growing pressure from rising compliance costs and technology investments required to remain competitive.
“This is about survival through scale,” noted Daniel Straus, analyst at National Bank Financial. “Independent wealth managers need significant assets under administration to justify the infrastructure investments required in today’s market.”
Industry experts point to several factors driving iA’s acquisition strategy. The aging Canadian population continues to create surging demand for wealth management services, while next-generation investors increasingly expect sophisticated digital offerings alongside personalized advice.
For RF Capital, which rebranded from GMP Capital in 2020 following the sale of its capital markets business, the deal represents the culmination of a strategic review initiated last year. The company had struggled to achieve consistent profitability despite its significant asset base, posting a $6.3 million loss in its most recent quarter.
The transaction remains subject to regulatory approval and is expected to close in the fourth quarter of 2024. iA Financial indicated it would finance the acquisition through existing cash resources and available credit facilities, maintaining its strong capital position.
As the dust settles on this landmark deal, the Canadian wealth management landscape faces further evolution. Independent firms continue consolidating to compete with bank-owned wealth managers, while digital disruptors apply pressure from below. For clients, the consolidation promises enhanced services but potentially fewer independent options.
What remains clear is that iA Financial has made a decisive move to position itself as a major player in Canadian wealth management. The question now becomes: will other mid-sized financial institutions follow suit, or has iA secured the last significant independent wealth manager in the market?
