This past November’s announcement that French financial services company Société Générale Group is acquiring Canadian Wealth Management Group Inc. will do nothing to deter Alberta’s swagger.

The France-based giant has decided to make its entry into Canada’s wealth-management market by partnering with Calgary-based CWM, skipping the traditional Toronto stage.

“It’s a real credit to Calgary,” says CWM founder and CEO Paul Boeda. “Société Générale sees Calgary — and Alberta — as an important financial centre, and it has chosen to establish it as its first entry into the Canadian market.”

Société Générale’s wealth-management arm, SG Private Banking, will acquire 100% of CWM, including its staff of more than 20 and $650 million in assets under management. However, while taking on CWM’s book of business, the new owner will preserve CWM’s identity.

“The name will not change and the staff will not change,” says Boeda. “Société Générale looks at it as buying into a business — not just acquiring a book of customers. It is interested in the business and the philosophy behind it.”

Société Générale’s presence will be most evident in the depth of the resources it can offer portfolio managers. It already serves more than 27 million customers worldwide and has access to serv-ices that a small firm such as CWM does not.

TWO YEARS IN THE MAKING

For Société Générale, the deal provides an entry into a new region. Its foray into Western Canada has been two years in the making, says Société Générale (Canada) CEO Edouard-Malo Henry. “As a European bank, we were historically focused on Toronto and Montreal,” he says, adding that Société Générale and Calgary’s booming oil and gas sector stand to benefit from each other.

With the acquisition, Société Générale gains a full set of operations in Calgary that includes investment banking, derivatives, structured finance and wealth management, Henry says.

“From the very beginning, it was clear there was chemistry with CWM,” he says.

Boeda agrees. “It’s a fit I didn’t even think was possible,” he says. “It’s attractive because its idea is to build a platform on what we already have. We’re honoured, as a small firm, to attract such a large and high-quality institution.”

CWM has been Boeda’s focus for the past 25 years. To him, the sale of CWM is more than just a strategic move. Although he intends to stay on in a capacity similar to his current role, selling the company he created is a step toward retirement. But he’s not there yet, he insists.

“If I’m in good health and still enthusiastic, I’ll stay — and I’m very enthusiastic,” Boeda says. “What’s critical is that the company will continue to grow without me there all the time. It’s a case of having more control over my time.”

The acquisition is subject to regulatory approval, which is expected this month.

“In the future,” Henry says, “we would like to expand this model to the rest of Canada.” IE