The new strategic partnership represents a monumental moment for the Canadian investment industry and the Canadian market landscape at large, as Harbourfront is among the few to attract this level of private equity investment.
- Harbourfront receives a nine-figure investment and transaction value of CAD $425 million from US private equity group, Audax Private Equity; proceeds and a special pre-investment dividend have been distributed to Harbourfront’s shareholders.
- Harbourfront sells a partial interest in its business to provide the first round of liquidity to its shareholders while validating that its innovative business model is amongst the most valuable in the Canadian financial services industry.
- Audax Private Equity’s resources and support will accelerate Harbourfront’s growth plans, which include advisor recruitment and additional acquisitions, among other plans.
VANCOUVER, British Columbia, Sept. 27, 2022 (GLOBE NEWSWIRE) -- The Harbourfront Group of Companies (“Harbourfront” or the “Company”), which includes Harbourfront Wealth Management Inc. (Harbourfront Wealth), a Canadian independent wealth management and planning advisory firm, today announced the close of its previously announced strategic investment from Audax Private Equity (“Audax”), a leading US-based strategic partner that specializes in the middle market. The transaction successfully closed on September 9, 2022, pursuant to regulatory approval.
In a release issued earlier this year, Harbourfront disclosed it secured a nine-figure investment from Audax which represents an estimated enterprise value of CAD $425 million. Prior to the transaction close, the firm disbursed a special dividend to its shareholders, primarily made up of the Company’s investment advisors.
The partnership and investment serve as an accelerant of the firm’s continued expansion and next phase of growth. Harbourfront’s management team will remain the key decision-makers of the firm’s growth strategy and operations.
“Harbourfront’s executive leadership team and growth model are strong and unparalleled to what we’ve seen from firms in the Canadian investment advisory space, and for this reason, we knew investing in Harbourfront was a sound decision. We plan to support Harbourfront in fully realizing its goals, which include aggressive growth plans across the Canadian market,” said Bill Allen, Managing Director at Audax.
Harbourfront's next phase of growth and immediate plan of action will include:
- Complete add-on acquisitions
- Sustain rapid organic growth through advisor recruitment
- Maintain employee engagement and ownership
- Invest further in the firm’s technology and
- Add additional executive expertise to the Company’s leadership team.
Notable participants of the transaction include Lynn Stibbard, CFO and COO of Harbourfront.
“Audax underwent an extensive due diligence process prior to finalizing the transaction with Harbourfront, which speaks to the high quality of our people and investment solutions that we’ve created and grown over the last 10 years. This investment represents recognition and validation of our unique independent model and that it is valued in the wealth management industry,” said Lynn Stibbard, CFO and COO of Harbourfront.
Initially introduced by Raymond James in August of 2021, Harbourfront selected Audax as its best-fit partner earlier this year after an in-depth assessment and evaluation of additional contenders.
Additional participants include Fasken, Stikeman Elliot LLP, Kirkland & Ellis, KPMG International LTD, Blake, Cassels & Graydon, Bain & Company, Audax Group, and Antares Capital.
“We’ve always been extremely well-capitalized, so we never sought out any investors but when Raymond James’ Investment Banking team approached us to survey the private equity market, we realized bringing on a third-party investor would validate our thesis, creating a catalyst for an accelerated rate of growth. Over the last 10 years, we’ve changed the lives of our clients through our exclusive retail service offerings and now, with this first liquidity round, we’ve changed the lives of our advisors who took the leap and joined us. Advisors are realizing that Harbourfront is disrupting the industry with one of the best client offerings and the ability for advisors to be partners at a firm that rapidly creates value for shareholders,” said Danny Popescu, CEO of Harbourfront.
For more information, please visit www.harbourfrontwealth.com
About Audax Private Equity
Audax Group is a leading alternative investment manager with offices in Boston, New York, and San Francisco. Since its founding in 1999, the firm has raised over $30 billion in capital across its Private Equity and Private Debt businesses. Audax Private Equity has invested over $9 billion in more than 150 platforms and 1,100 add-on companies and is currently investing out of its $3.5 billion sixth private equity fund. Through its disciplined Buy & Build approach, Audax seeks to help platform companies execute add-on acquisitions that fuel revenue growth, optimize operations, and significantly increase equity value. With more than 300 employees and over 100 investment professionals, the firm is a leading capital partner for North American middle market companies.
For more information, visit the Audax Private Equity website: www.audaxprivateequity.com
About Harbourfront Wealth Management
Founded in 2013, the Canadian-owned independent wealth management and planning advisory firm group is headquartered in Vancouver, B.C., and has a rapidly growing network that currently consists of 25 branches across Canada. The Harbourfront Group includes a registered Securities Dealer/Investment Advisory firm servicing established advisors and their high net worth clients, an Investment Fund Manager that specializes in managing sub-advised alternative investment funds, and a US SEC Registered Investment Advisory firm. Learn more: www.harbourfrontwealth.com
Media Contacts:
Sarah Mawji
smawji@harbourfrontwealth.com
604 365 1786
