This news service talks to CIBC Private Wealth about its recent acquisition of Lowenhaupt Global Advisors.

CIBC Private Wealth Management recently acquired prominent firm Lowenhaupt Global Advisors. The move continues an M&A trend in the sector. The acquirer argues that this deal will deepen its expertise in areas such as family wealth advice at a time when intergenerational transfers are major issues.

LGA is part of the 110-year-old Lowenhaupt & Chasnoff business which also revealed a new role for Charles Lowenhaupt, partner and chairman of the eponymous organization. Some 15 years ago, Lowenhaupt & Chasnoff separated the advisory firm from the law firm to allow full SEC transparency in the advisory business and to maintain the attorney-client privilege in the law firm. Hence Lowenhaupt Global Advisors was born. Since then Charles Lowenhaupt has chaired both companies. However, with CIBC Private Wealth's acquisition of the advisory firm, Charles Lowenhaupt is no longer involved with their business. (Charles Lowenhaupt is a member of this publication’s editorial advisory board.) 

Family Wealth Report interviewed Jack Markwalter, CEO of CIBC Private Wealth Management, about the transaction and why it has done it. 

”We have known LGA for over 70 years, and have enjoyed a mutual respect and admiration. For decades, many of their clients have chosen to work with CIBC Private Wealth Management to manage their portfolios. Buying LGA further enhances what we are doing in the family office space for our clients with $25 million or more AuM. We have a history of working with very wealthy families and LGA will broaden, strengthen and deepen that expertise,” he said. 

CIBC Private Wealth provides a number of services, which the LGA deal will reinforce, he said. They are personal financial management; investment and property management; entity management and wealth transfer; family education and legacy planning. 

“The LGA team will be fully integrated into CIBC Private Wealth. They will continue working day to day with their clients, but will now have additional resources,” Markwalter said. 

Asked what he thinks is driving industry M&A, he said: “Yes, we are seeing consolidation. But our primary focus is on organic growth. This means taking great care of existing clients, and bringing in new clients through referrals and intermediary relationships. When it comes to inorganic growth, we are very selective and only look for opportunities where there is specific expertise or the ability to expand in key markets. And there absolutely must be a good cultural fit.” 

The LGA deal is not CIBC Private Wealth Management’s first. It bought Geneva Advisors two years ago, for example. “We believe LGA will be a great cultural fit, as well, and their clients will have the same service as before plus additional resources - technology, knowledge and expertise,” Markwalter said.  

“This acquisition deepens our presence in St. Louis and adds to our already significant presence in New York,” he said, noting that the LGA deal adds 17 people. 

Canadian Imperial Bank of Commerce acquired Atlantic Trust from Invesco more than five years ago, and the CIBC Private Wealth Management brand was adopted last year.