Harbourfront to buy Cumberland Private Wealth

Vancouver-based Harbourfront Wealth Group will acquire Cumberland Partners Ltd. and its subsidiaries Cumberland Private Wealth Management, Cumberland Investment Counsel and NCM Investments, Harbourfront announced Thursday.

Cumberland was founded in 1997 as an employee-owned wealth and investment management firm, and has about $5 billion in assets under management. The acquisition will grow Harbourfront’s presence in Toronto, Calgary and Kingston, Ont.

Danny Popescu, founder and executive chair at Harbourfront, said in an interview that the firms have been in touch for more than two years and recognized a mutual fit. “We see a lot of firms that wouldn’t be a good fit, [but Cumberland] is a great cultural fit.”

All Cumberland advisors will become partners in Harbourfront, including those who weren’t previously partners at Cumberland, Popescu added. Cumberland advisors will have access to Harbourfront’s technology and additional services like lead generation and marketing for growth.

Cumberland’s branch network will remain the same, as will how advisors serve their clients, Popescu said. “We very much like what they’re doing from a portfolio management perspective.”

Harbourfront did not disclose the deal’s terms.

This is Harbourfront’s fifth acquisition in three years. Last July, it bought Ottawa-based Millar Private Wealth Management Inc., which brought $800 million in client assets, following its purchase of Toronto-based Harrison & Partners in April.

Harbourfront paid a dividend in the early years, but partners voted to reinvest in the business instead. That decision helped the company grow from $4 billion in in assets under administration (AUA) in 2023 to $22 billion and 600 employees after the Cumberland deal closes, Popescu said.

“We’ve been very growth focused, investing our strong earnings back into the business in technology, investing in people and in acquisitions,” he added.

Roughly 10% of Harbourfront’s AUA growth came organically with the rest split about evenly between advisor recruitment and mergers and acquisitions, Popescu said.

The Cumberland transaction is expected to close in the third quarter, subject to regulatory approvals and other customary closing conditions.

Harbourfront has another deal under a letter of intent and Popescu said he expects to make an announcement on it before the end of the year.

This story has been updated with an interview.