How Guardian Capital helped solve a succession-planning problem

But over time and with the encouragement of its consultants and advisory board, the firm decided to look outside and consider a broader goal. Aside from planning for succession, it sought to create a strategic partnership with a third party.

That ultimately led to an arrangement with Guardian Capital, a $53-billion AUM institution, which has agreed to acquire a majority stake of The RaeLipskie Partnership.

“I think from a strategic point of view, we see an opportunity in Canada where there are investment counselling and management firms that are going through succession,” says Doce Tomic, Head of Wealth Management at Guardian Capital. “Wealth firms, in turn, are looking for an organization to work with them so that they can be part of the puzzle for the future.”

Under the agreement, Guardian will acquire a 60% ownership interest in The RaeLipskie Partnership; Lipskie will retain a significant ownership in the company and continue on as president. A group of senior staff and portfolio managers at RaeLipskie will also acquire a stake in the firm. The transaction is expected to close in the third quarter.

During RaeLipskie’s search for potential partners, Lipskie says Guardian stood out as one of Canada’s highest-quality investment managers “with an impeccable reputation for integrity and fairness.” Tomic, meanwhile, highlighted his firm’s desire to depart from what some other acquirers do, which is to swallow up smaller organizations and assimilate them into a larger group.