Less than a month after pulling the trigger to sell its telecommunications company to Rogers Communications Inc., the Shaw family is injecting millions into ultrahigh-net-worth wealth manager Grayhawk Investment Strategies Inc.
On Wednesday, Calgary-based Grayhawk will announce it has completed a $13-million financing round led by Power Corp.’s alternative-asset management arm Sagard Holdings Inc., and also included members of the Shaw family.
Shaw Communications Inc. chief executive officer Brad Shaw has been an individual investor in Grayhawk since it launched in 2015, and will now be joined by his siblings and their extended family members.
“Our family has had the opportunity of watching Grayhawk Wealth evolve from its earliest beginnings,” Mr. Shaw said in a statement. “We believe strongly in their independence, open architecture, and global investment platform, combined with their proven focus on building deep and meaningful relationships with all members of our family. We believe this partnership will set our family up for continued success for generations to come.”
The amount of the investment is undisclosed but the Shaw family’s participation will make them “one of the largest independent shareholders in the firm,” said Grayhawk founder and co-CEO Michael Kaumeyer. “[Their participation] is a reflection of the family’s needs as it pertains to the stewardship of their investable wealth,” Mr. Kaumeyer said.
Grayhawk manages about $1-billion in assets and caters to high- and ultrahigh-net-worth households across Canada. Those accounts typically have more than $30-million in investable assets and can include multiple generations of family wealth.
Serving Canada’s richest people remains a competitive landscape for independent wealth managers, but the competition is starting to get smaller. There are 157 independent brokerage firms in Canada, according to the Investment Industry Association of Canada, down from just more than 200 firms that were operating five years ago. Wealthy people are drawn to ultrahigh-net-worth boutique firms as their financial planning needs are often more complex that those of the average investor.
Grayhawk operates in Montreal, Vancouver, Calgary and Toronto. Co-CEO Peter Mann says the latest round of financing will accelerate the company’s expansion plans.
This is the second round of financing for Grayhawk. Last November, Sagard Holdings acquired an undisclosed majority stake in the wealth manager. At the time, Sagard CEO Paul Desmarais III said the deal would help the asset manager target Canadian entrepreneurs.
“Over the last 12 months, Grayhawk Wealth has significantly advanced its mission of serving successful Canadian families with their wealth management strategies and investment needs,” Mr. Desmarais said. “We believe the Grayhawk Wealth team’s distinctive approach to clients will enable them to grow their footprint.”
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