Canadian Imperial Bank of Commerce is boosting its U.S. capital markets presence with the purchase of a stake in Chicago-based institutional asset manager Loop Capital.
On Wednesday, CIBC announced it has taken an undisclosed minority ownership stake in Loop Capital, a financial services firm providing investment banking, brokerage, asset management and wealth management services to corporations, municipalities, hospitals, universities, institutional investors and high-net-worth individuals.
Financial terms of the deal were not disclosed.
The acquisition helps boost CIBC’s plans to further expand into the United States, with a particular focus on capital markets and wealth management.
In recent years, the bank has completed several deals to bolster its U.S. business, including the acquisition of Cleary Gull and Lowenhaupt Global Advisors in 2019; two Chicago-based private wealth managers, PrivateBancorp and Geneva Advisors, in 2017; and Atlantic Trust Private Wealth Management in 2014.
“The buildout of our U.S. wealth business has been a process for us, and it’s been quite successful,” CIBC chief executive Victor Dodig said during a quarterly call earlier this year.
Today, CIBC’s U.S. wealth business manages and administers more than US$92-billion in assets in 19 cities across the United States.
Loop Capital did not disclose its assets under management but has offices in 20 U.S. cities, with more than 175 employees.
“With the combination of Loop Capital’s deep client relationships in the U.S. and the strength of our resources and capabilities, we see this as a mutually beneficial transaction which enables us to accelerate the growth of our North American platform,” said Harry Culham, senior executive vice-president and group head of CIBC capital markets.
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