Royal Bank of Canada (RBC) is, reportedly, looking at potential acquisition to expand its wealth management business, grow its presence in alternative assets, and beef up US distribution.
Speaking at Reuters Global Wealth Management Summit in New York, George Lewis -group head of RBC Wealth Management and RBC Insurance-said: "On the asset management side, we have a viable organic strategy but relatively small business here compared to worldwide. We would be interested in acquisitions that broadened capability in that business.
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"The alternative space is one where we are intent on increasing our capabilities particularly on the real estate management side," he said.
Lewis revealed that RBC will consider acquisitions of as much as C$2 billion, but the pace will be ‘measured and careful’.
"Opportunities in that C$1 to C$2 billion cumulative range over the next couple of years, that would be very much the size we are looking for, whether that comes in one or two or three components," Reuters quoted him saying.
RBC has made two major acquisitions in the wealth management business in the last six years, buying Phillips, Hager & North Investment Management in 2008 and BlueBay Asset Management in 2010.
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By GlobalDataLewis said he expects another purchase can be made within the next "couple of years."
