Big Ben, Westminster Bridge on River Thames in London, the UK. English symbol. Lovely puffy clouds, sunny day
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Canaccord Genuity Group Inc. is taking on a new investor for its wealth management business in the U.K.

The Toronto-based brokerage firm said New York’s HPS Investment Partners, LLC will acquire £125 million ($219 million) worth of convertible shares in its U.K. subsidiary, Canaccord Genuity Wealth Group Holdings (Jersey) Ltd.

The transaction is subject to regulatory approval and other closing conditions. The stake represents a 21.93% equity interest in Canaccord’s U.K. business on an “as converted” basis.

The net proceeds of the deal, approximately £120 million ($210 million) will be returned to the Canadian parent company, Canaccord Genuity, it said in a release.

“The proceeds from this investment provide us with options and flexibility to redeploy capital towards strategies to advance our firm-wide growth, enhance our long-term profitability, and provide optimal returns for our shareholders,” said Dan Daviau, president & CEO of Canaccord Genuity.

The firm said the management and operations of the U.K. division will remain unchanged and that HPS is expected to remain as a strategic and financial partner for future growth.

“We are delighted to have found in HPS a long-term partner to further our strategic growth ambitions and consolidate CGWM U.K.’s position as one of the leading wealth management firms in the U.K.,” said David Esfandi, CEO of the U.K. business.