An Atlanta money management business catering to wealthy clients and endowments is being sold to a Canadian financial company for $210 million.
Atlantic Trust Private Wealth Management, owned by Atlanta-based Invesco, will be purchased by CIBC. In a statement, CIBC executives said the deal offers “an attractive entry” into the American private wealth market. CIBC recently acquired a Canadian investment firm and plans to expand its reach in North America.
Atlantic Trust has $20 billion in assets under management and clients in 12 cities.
At the end of 2012, Atlantic Trust represented 3 percent of all of Invesco’s assets under management and its sale is expected to reduce annualized net revenue by $115 million.
Invesco chief financial officer Loren Starr told analysts in a conference call that the sale makes strategic sense as Invesco shifts its focus toward selling more of its own products. Atlantic Trust offered a wide range of investments from numerous companies.
Very few Invesco products were cross-sold to Atlantic Trust clients, he said.
“We’re making the statement that we’re not pursuing this line strategically, it’s not where we are,” Starr said.
Invesco will use the money from the sale to buy back stock, Starr said. The deal is expected to close in the second half of the year.
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