Canadian Imperial Bank of Commerce (CIBC) has acquired a minority ownership in Chicago-based Loop Capital to grow its business in the US market.
Financial terms of the transaction have not been revealed.
Loop Capital offers brokerage, asset management, wealth management and investment banking services to HNW individuals, institutional investors, corporations, municipalities, hospitals, universities.
The firm has footprint in 20 US cities and a team of 175 employees globally.
CIBC’s investment will allow Loop Capital boost collaboration on future client activity in areas including capital markets and wealth management.
Loop Capital chairman and CEO Jim Reynolds said: “We have worked closely with the team at CIBC for many years, and this is a great opportunity to continue to pursue mutually beneficial growth opportunities for our respective platforms.
“Further, CIBC and Loop have cultural alignment and share a keen focus on serving clients that will allow us to continue to garner growth.”
Following its takeover of The PrivateBank in 2017, CIBC has been focusing on accelerating its organic growth by investing in acquisitions with firms.
These include the acquisitions of Cleary Gull and Lowenhaupt Global Advisors in 2019, and Geneva Advisors in 2017.
The bank said the latest deal is a further step in expanding its product offering for clients and further accelerating US growth.
CIBC Capital Markets Group head and senior executive vice-president Harry Culham said: “With the combination of Loop Capital’s deep client relationships in the US 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, while collaborating to deliver a full suite of financial services solutions to clients.”