BMO Expands Wealth Management Portfolio with Burgundy Asset Management Acquisition

BMO Expands Wealth Management with Burgundy Asset Management Acquisition

BMO Financial Group has made a significant move to strengthen its position in the wealth management sector by announcing the acquisition of Burgundy Asset Management Ltd. The agreement, which was signed recently, marks an important step for BMO as it looks to cater more effectively to high-net-worth and ultra-high-net-worth individuals, families, and institutions across Canada.

Burgundy Asset Management is renowned as an independent wealth management firm, boasting approximately $27 billion in assets under management as of May 31, 2025. The firm's comprehensive approach includes discretionary investment management services tailored for private clients, foundations, endowments, pensions, and family offices. This strategic acquisition signifies an expansion of BMO Wealth Management and aims to bolster the bank's existing offerings in the Canadian Investment Counsel space.

Recognized for its client-centric philosophy, BMO has recently received accolades as Canada's Best Private Bank for Ultra-High-Net-Worth clients at the Euromoney Private Banking Awards. With the acquisition, BMO aims to build on its legacy of delivering personalized wealth management solutions that address the specific needs of affluent clients.

The deal is valued at approximately $625 million and will be executed through BMO common shares. A notable condition of the sale includes a $125 million holdback, contingent upon Burgundy maintaining specific assets under management for a period of 18 months post-closing. Additionally, contingent payments might be available based on future growth benchmarks.

Deland Kamanga, Group Head of Wealth Management at BMO Financial Group, emphasized Burgundy's esteemed reputation in the investment management landscape. He stated, "Burgundy Asset Management is one of Canada’s most respected independent investment managers known for its high calibre team, rigorous investment process and dedicated service to private clients, institutions, and family offices. The acquisition will build on BMO’s heritage as a client-focused wealth manager while expanding our wealth advice and private investment counsel offering."

After the completion of the acquisition, Burgundy will function as a part of BMO Wealth Management, maintaining its operational independence under the leadership of its Chief Executive Officer, Robert Sankey. Co-Founders Tony Arrell and Richard Rooney are also expected to remain involved, ensuring continuity and stability for existing clients.

Tony Arrell, Chairman and Co-Founder of Burgundy Asset Management, expressed optimism about the partnership with BMO, stating, "It has always been our intention to build Burgundy for the long run, so we can serve our clients and their families across generations. We are happy to be joining BMO, a North American leader, and believe this is a great opportunity to continue to serve our clients well into the future."

Founded in 1990, Burgundy has developed a robust reputation for its disciplined and quality-driven approach to investment. The firm serves a diverse clientele from its offices in Toronto, Vancouver, and Montreal, employing a dedicated team of professionals focused on delivering robust investment strategies.

As one of the largest banks in North America, BMO Financial Group commands total assets of $1.4 trillion as of April 30, 2025, and has been serving customers for over 200 years. The firm operates a diverse portfolio that includes commercial banking, investment banking, and wealth management services, helping approximately 13 million customers across North America and beyond.

The transaction's successful completion is anticipated by the end of the 2025 calendar year, pending necessary regulatory approvals and other customary closing conditions. Both organizations are committed to ensuring that the merger proceeds smoothly and benefits their clients in the long run.

In conclusion, BMO's acquisition of Burgundy Asset Management represents a strategic enhancement of its wealth management capabilities, allowing it to provide tailored investment solutions to high-net-worth clientele while upholding a commitment to excellence in service delivery. This merger illustrates BMO's dedication to growing its market share in the competitive landscape of wealth management and investment services.