IGM Financial Corp. will remain the second-largest shareholder in U.S.-based Rockefeller Capital Management following the entrance of several new investors in a financing deal announced on Tuesday.
The new group of investors, led by Mousse Partners, Progeny 3 and Abrams Capital, join existing investors Viking Global Investors, the Rockefeller family and the Desmarais family. Canada’s Desmarais family controls IGM’s parent company, Power Corp.
Neither the amount raised nor the terms of the deal were disclosed. However, IGM said in a release that the deal gives Rockefeller, an independent financial services firm that’s focused on ultra-high-net-worth families, an enterprise value of US$6.6 billion.
“The continued support from our existing investors underscores the strength and momentum of our firm as we enter this next phase of growth,” said Gregory J. Fleming, president and CEO of Rockefeller Capital Management in a release. “This recapitalization represents a significant step forward, fully aligned with Rockefeller Capital Management’s long-term strategic objectives.”
IGM acquired a 20.5% equity stake in Rockefeller Capital Management in mid-2023, paying US$622 million. At the same time, it sold its Investment Planning Counsel business to Canada Life for $575 million.
Based on the transaction valuation, IGM’s current interest in Rockefeller is valued at US$1.13 billion (C$1.58 billion), up around 45% from its initial investment.
“We are proud of the ongoing and rapid progress that Rockefeller has made in establishing themselves at the top end of the U.S. wealth management industry,” said James O’Sullivan, president and CEO of IGM in a release. “The financial metrics of the transaction speak for themselves. We will remain the only wealth manager in their ownership structure and Rockefeller’s second largest shareholder. Our interests remain strategic and long term.”
IGM will sell a small portion of its equity interest to support the goals of the transaction, the details of which are expected to be finalized when the deal is closed, it said in the release.
The transaction is expected to close before the end of the year.
Rockefeller manages $187 billion in client assets across its Rockefeller Global Family Office, Rockefeller Asset Management and Rockefeller Global Investment Banking businesses. The firm serves high-net-worth and ultra-high-net-worth individuals, families, institutions and corporations from offices across the United States and in London.