Igm Financial Inc. · TSX:IGM
Igm Financial — Merger or Acquisition (April 2023)
19 slides from Igm Financial's merger presentation, Apr 4, 2023
Slide 1: IGM Financial Acquires Stake in Rockefeller Capital Management
IGM Financial Acquires Stake in Rockefeller Capital Management Analyst Presentation April 4, 2023
Slide 2: Conference Call Participants
Conference Call Participants JAMES O‘SULLIVAN KEITH POTTER GREGORY J. FLEMING PRESIDENT & CEO EXECUTIVE VICE- PRESIDENT & CEO IGM FINANCIAL PRESIDENT & CFO ROCKEFELLER CAPITAL IGM FINANCIAL MANAGEMENT 2
Slide 3: Caution concerning forward-looking statements
Caution concerning forward-looking statements Certain statements in this presentation, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM Financial Inc.’s (“IGM Financial or the “Company”) and Rockefeller Capital Management L.P.’s (“
Slide 4: Non-IFRS Financial Measures & Other Financial Measures
Non-IFRS Financial Measures & Other Financial Measures This report contains Non-IFRS financial measures that do not have standard meanings prescribed by IFRS and may not be directly comparable to similar measures used by other companies. These measures and ratios are used to provide management, inve
Slide 5: Acquisition of a strategic equity interest in Rockefeller Capital Management
Acquisition of a strategic equity interest in Rockefeller Capital Management Rockefeller – a leading U.S. A risk-smart entry into the independent financial U.S. wealth management services advisor firm market for IGM Financial Pre-eminent destination for New growth platform for elite U.S. financi
Slide 6: Strategic Overview
Strategic Overview IGM Financial acquires a 20.46% stake in Rockefeller Capital Management to become the second largest investor alongside Viking Global Investors; Expands capabilities in the high-net-worth (HNW) and ultra-high-net-worth (UHNW) segments Strategic investment for IGM • Advancement and
Slide 7: U.S. Wealth Market is the Biggest and Deepest in the World
U.S. Wealth Market is the Biggest and Deepest in the World Millionaire Breakdown by Country1 39% of millionaires worldwide or ~25 million adults1 Other, 24% • During 2021, added 2.5 million new millionaires, the largest increase in millionaire numbers recorded, for any country, in 20+ years U.S., 39
Slide 8: Rockefeller Capital Management is a Globally Respected Contemporary Brand
Rockefeller Capital Management is a Globally Respected Contemporary Brand Built on the Legacy of the Rockefeller Family Office 1882 JOHN D. 2018 1884 1901 1913 1921 ROCKEFELLER SPELMAN ROCKEFELLER THE ROCKEFELLER INTERNATIONAL OPENS FIRST COLLEGE UNIVERSITY FOUNDATION HOUSE FULL-SERVICE FAMILY OFFIC
Slide 9: Rockefeller Capital Management Today
Rockefeller Capital Management Today: a leading independent financial services firm Rockefeller Global Family Office business complemented by Strategic Advisory and Asset Management, increasing organic growth opportunities ROCKEFELLER CAPITAL MANAGEMENT PARTNERSHIP WITH ROCKEFELLER FAMILY ROCKEFELLE
Slide 10: Rockefeller Capital Management Today: Leadership Team
Rockefeller Capital Management Today: Run by a strong and well respected leadership team, has a well respected brand, and builds the business with elite advisors on a modern financial services platform Experienced Leadership Globally Respected Brand Modern Technology Stack ► Led by Gregory J. Flemin
Slide 11: Proven National Growth Model Attracting Top Advisors
Proven National Growth Model Attracting Top Advisors; Focused on HNW and UHNW Segments 3 Rockefeller Global Family Office (RGFO) locations in 2018 to 44 today1 Advisor Team Growth Rockefeller Office Locations 120 120 teams across 44 U.S. offices as of March 31, 2023 Chicago Saratoga San Francisco 91
Slide 12: Rockefeller Capital Management Has Delivered Strong Client Asset and Revenue Growth
Rockefeller Capital Management has Delivered Strong Client Asset and Revenue Growth, Powered by both Organic and Inorganic Growth Drivers Inorganic growth through recruiting Client Assets1 (US$B) Revenue (US$MM) top private wealth advisors Assets Under Management & Advisement Rockefeller Global Fami
Slide 13: Rockefeller Capital Management Has Demonstrated Ability to Grow
Rockefeller Capital Management has Demonstrated Ability to Grow and is Positioned to Deliver Strong Future Growth Rockefeller Capital Management Business Model Rockefeller Global Family Office Growth Strategy ► Premier Wealth Management franchise for HNW and UHNW ► Recruit high-quality advisor teams
Slide 14: Valuation Reflective of Growth Profile
Rockefeller Capital Management Valuation Reflective of Growth Profile RCM Revenue & Adjusted EBITDA1 RCM Enterprise Value to Adjusted EBITDA Multiple1,2 (US$MM) Revenue Adj. EBITDA ~21x $577 $398 $248 ~13.5x $138 $88 $7 $35 ($40) 2019 2020 2021 2022 2023 2024 Forecast Forecast RCM Revenue Growth % ~
Slide 15: Summary of Transactions
Summary of Transactions 1) IGM Financial acquires an equity interest in Rockefeller Capital Management to expand 2) Canada Life to Acquire Investment Planning capabilities in the high-net-worth and ultra-high-net-worth segments Counsel a) IGM Financial to purchase 20.46% of Rockefeller Capital Manag
Slide 16: Strategic Rationale for the Sale of Investment Planning Counsel Inc.
Strategic Rationale for the Sale of Investment Planning Counsel Inc. 1) Unlocks embedded value with valuation multiple reflecting the capabilities, scale and distinct structure of IPC in Canada (~16x 2022 Adjusted EBITDA1) – Q4/22 analyst presentation sum-of-the parts valued IPC at C$342MM2 2) Stren
Slide 17: Financial Q&A
Financial Q&A
Slide 18: Financial Appendix
Financial Appendix
Slide 19: RCM IFRS Earnings and Adjusted EBITDA
RCM IFRS Earnings and Adjusted EBITDA 2019 2020 2021 2022 RCM Net Income - IFRS $ (57.9) $ (28.9) $ (33.3) $ (63.1) Share-based compensation - 2.8 9.7 35.8 Depreciation & amortization 6.7 6.0 7.5 10.2 Loan amortization 9.3 21.5 41.4 69.2 Interest & taxes 1.7 5.8 9.6 35.8 RCM Adjusted EBITDA1 (40.2)