Royal Bank of Canada has struck a deal to buy UK-based money manager BlueBay Asset Management for roughly $1.56 billion.
The deal is expected to expand RBC’s global reach from three geographic wealth management businesses to four (Canada, U.S., U.K. and Emerging Markets).
The new deal is aimed at replicating RBC Wealth Management’s success in the ultra high net worth segment in Canada across international markets.
“This acquisition will further RBC’s strategy to leverage our position as a Top 10 global wealth manager, and continue to expand our asset management solutions for the benefit of our clients around the world,” said George Lewis, group head, RBC Wealth Management. “BlueBay is an ideal fit with RBC’s growing asset management business and we are confident that this transaction will benefit clients, employees and shareholders of both firms.”
BlueBay is one of Europe’s largest independent managers of fixed income funds and products, with US$40 billion in assets under management on behalf of institutional and high net worth investors in the UK, Europe, the U.S., the Middle East, Asia and Australasia.
“RBC’s strength and stability make it an ideal partner for BlueBay,” said Hugh Willis, CEO of BlueBay. “Its commitment to its clients and its high standards of business practices mirror our own and lie at the heart of the excellent cultural fit between our firms. We greatly look forward to working together in providing our clients with world class investment solutions.”
The deal highlights RBC Wealth Management’s continued drive for growth by leveraging the capabilities and expertise of its most profitable business, RBC Global Asset Management.