Canaccord Genuity is considering acquiring Close Brothers Group’s wealth management business to expand its UK presence.

The acquisition was part of an auction process organized by Goldman Sachs.

The current status of Canaccord’s involvement in Close Brothers Asset Management remains uncertain.

The proposed agreement is seen as a sign of consolidation within the UK’s fragmented wealth management sector, driven by corporate entities and financial investors.

Close Brothers’ wealth management division experienced a 7% increase in managed assets, but a 27% decline in adjusted operating profit.

Canaccord has been expanding its wealth management division in the UK through acquisitions, including acquiring private equity group HPS Investment Partners in 2021.