BMO Seals $625M Deal to Bring Burgundy Asset Management Into Fold

FUD_Whisperer · 2025-12-31T10:57:44+00:00

BMO Financial Group has acquired Burgundy Asset Management for approximately $625 million in common shares to enhance its wealth management services in North America, targeting ultra-high-net-worth clients. Burgundy will maintain its independence post-acquisition, expected by the end of 2025.

FUD_Whisperer

2025-12-31 10:57:44

Abstract generation in progress

BMO Financial Group has finalized its acquisition of Burgundy Asset Management Ltd., marking a significant expansion of its wealth management footprint across North America. The Toronto-based bank is paying approximately $625 million in BMO common shares for the independent asset manager, with a $125 million holdback contingent on maintaining certain asset levels within 18 months post-closing. Additional earn-out payments could follow based on achieving specific growth milestones.

The transaction underscores BMO’s strategic push to strengthen its position in premium wealth management services. Burgundy brings roughly $27 billion in assets under management to the table, along with a reputation for disciplined quality-value investment strategies. The firm operates from offices in Toronto, Vancouver, and Montreal, serving high-net-worth individuals, ultra-high-net-worth families, foundations, endowments, pension funds, and family offices—a lucrative client segment that BMO has been actively targeting.

Burgundy was founded in 1990 and employs approximately 150 professionals. The firm will maintain its operational independence under BMO Wealth Management after the deal closes, expected by end of 2025. CEO Robert Sankey will continue leading the business, while co-founders Tony Arrell and Richard Rooney stay on board. This leadership continuity signals BMO’s commitment to preserving Burgundy’s investment philosophy and client relationships.

For BMO—North America’s seventh-largest bank by assets with $1.4 trillion in total assets—the acquisition directly addresses the growing demand for sophisticated investment counsel among ultra-high-net-worth clients. The bank recently earned recognition as Canada’s Best Private Bank for Ultra-High-Net-Worth clients according to the Euromoney Private Banking Awards, strengthening its credentials to integrate Burgundy’s premium clientele seamlessly.

The deal carries typical closing conditions including regulatory approvals. KMS Capital, Origin Merchant Partners, and PJT Partners advised Burgundy on the transaction, while BMO Capital Markets served as exclusive financial advisor to the acquiring bank. Both parties deployed top legal counsel—Torys LLP for Burgundy and Osler, Hoskin & Harcourt LLP for BMO—to navigate the complexities of this cross-border wealth management consolidation.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.