IGM Financial Makes Additional Investment in Personal Capital

IGM Financial (TSX:IGM) has made an additional $25 million investment in Personal Capital, a market-leading digital wealth advisor based in the US, bringing its total investment in the company to $75 million (US). This increases IGM Financial’s ownership stake in the company from 10 to 15 percent with the remaining interest owned by Personal Capital’s management team and existing investors.
As quoted in the press release:

IGM Financial Inc. invested an initial $50 million in Personal Capital in May 2016. An additional $25 million investment was contingent upon the firm hitting a growth milestone by the end of the second quarter of 2017. The firm surpassed that milestone by adding $1.5 billion under management in the last year to over $3.4 billion in assets, marking over 80% growth in less than 12 months.
“Personal Capital continues to experience rapid growth in the affluent investor segments of the market by offering a unique, compelling and valuable proposition for its clients,” said Jeff Carney, President and Chief Executive Officer of IGM Financial Inc. “We are very pleased that the company has outpaced its performance target, giving us further opportunity to participate in the emerging digital wealth management industry in the United States.”

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