Royal Bank of Canada has acquired Mesirow Financial’s correspondent clearing and custody business in a transaction aimed at boosting its own correspondent services and advisor services divisions.
RBC’s correspondent and advisor services businesses provide wealth management services—including back office systems, products and services— to more than 200 independent broker-dealer and investment advisor clients.
The acquisition, which closed on March 2, is expected to expand RBC’s clients by more than 50 client brokerage and advisory firms. That includes about $3.5 billion in additional end client assets under administration, according to RBC.
RBC said the acquisition is also expected to make RBC U.S. Wealth Management’s Correspondent Services division the six-largest clearing firm by number of broker-dealer clients. Terms of the transaction were not disclosed.
“This acquisition further accelerates the growth of our RBC Correspondent and Advisor services division, one of the pillars of our wealth management offering in the U.S.,” Head of RBC Correspondent and Advisor Services Catie Tobin said in a statement. “With similar cultures, values and business models, Mesirow Financial’s correspondent clearing business is a natural fit for RBC, which is committed to providing an expanded and flexible platform to help advisors choose the best business model to fit their needs.”
Lorie Konish writes for On Wall Street.