IGM Financial, a Canadian personal financial services firm, has completed a $50m investment in US-based digital wealth advisor Personal Capital.
The investment would initially offer IGM a 10% ownership stake in Personal that would eventually increase to 15% within 12 months. The rest of the stake will be held by Personal’s management team and existing investors.
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The company added that it will invest another $25m in the digital wealth advisor in 2017.
IGM Financial president and CEO Jeff Carney will now become a member of Personal’s Capital board of directors.
Carney has over 25 years of experience at investment management firms and banks in Canada and the US, and worked in senior executive roles at several financial organisations in North America.
Commenting on the deal, Carney said: "This opportunity will enable us to participate in the emerging digital wealth management industry in the United States. As founder and CEO of Personal Capital, Bill Harris brings over 25 years of experience building financial technology, notably serving as CEO of Intuit and PayPal.
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By GlobalData"Bill’s proven leadership together with the depth of talent of his management team, their combined experience and innovative technology, makes this is an attractive investment for IGM Financial."
Personal Capital CEO Bill Harris added: "Demand for our advisory services and supporting tools is only growing, and we are excited to have IGM Financial join us and our current investors in helping more people reach their long- term financial goals, whether that be starting a family, buying a home, or getting ready for retirement."
