Canadian Imperial Bank of Commerce’s (CIBC) have acquired Atlantic Trust Private Wealth Management for $210m, in a move adding $20bn to it’s assets under management (AuM).
PBI estimates this will put the banks AuM at close to $34bn, after adding $1.4bn last year when they bought MFS McLean Budden Private Wealth Unit.
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Atlantic Trust , a subsidiary of Invesco, gives CIBC a chance to strengthen their position in the lucrative US wealth management sector.
The acquisition follows the purchase of MFS McLean Budden and a 41% stake in US wealth management firm American Century.
"The Atlantic Trust acquisition aligns with our strategy to grow our wealth management business in North America," said CIBC President and CEO Gerry McCaughey.
"This transaction further enhances our private wealth management offering to high-net-worth clients and is consistent with our acquisition of MFS McLean Budden in Canada."
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By GlobalDataCanada Banks pushing forwards
CIBC is part of a group of Canadian banks who have produced strong results under cautious strategies, while other countries and banks have suffered severely from the financial crisis of 2008.
In October 2012 Gary Whitfield, managing director and head of private wealth management at CIBC, told PBI the company were looking for further investments and highlighted the positive position the bank was in.
"Over the past six years, CIBC has built one of the strongest capital positions of any bank in the world," he said.
Earlier in 2012, the company sold their Hong Kong and Singapore wealth managed business, which had $1.94bn AuM, in a move to realign its operations.
The deal for Atlantic Trust is expected to be finalised later this year.
