Purpose to acquire Steadyhand’s $1.3B in assets

Steadyhand, which has offices in Vancouver and Toronto and focuses on low-fee mutual funds and outcome-based investing, was founded in 2006 and has more than $1.3 billion in assets across 3,900 investors, the release said.

Chair and co-founder “Tom Bradley and the Steadyhand team share our passion for exceptional client service and goal-based investing, and we’re excited to bring their team on board to accelerate our vision to empower more people to take control of their financial futures and build lasting success,” said Som Seif, CEO and founder of Purpose, in the release.

The partnership “represents a significant step forward in our mission to provide Canadians with a better investing outcome and a simpler, more personalized client experience,” the Steadyhand website says.

In a blog post, Bradley said Purpose shares his firm’s commitment to providing advice to all Canadians.

“Most other firms are focused on clients with millions of dollars,” Bradley wrote. “Purpose shares our passion for offering Canadians an alternative to traditional bank branches or advisors who may not fully understand their needs and service expectations.”

Steadyhand also provides clients with continuity in the professionals who serve them, Bradley said in an interview.

In the blog post, he wrote that Purpose will provide enhanced investment management, including access to retirement products and improved online tools. It will also allow Steadyhand to focus on client service and advice and address the succession challenge that “hovers over every small independent firm.”

“With Purpose we get the technology” to improve client service, Bradley said when interviewed. As far as succession, “I’m going to see through the transition,” he said.

Client reaction has been bittersweet in some cases. “They’ve come to know our team and how responsive we are,” Bradley said, and clients won’t lose that under the acquisition. Still, some are “sad we’re going to a new era,” he said.

Jeff Gans, chief client officer with Purpose and president and CEO of Advisor Solutions by Purpose, said the firm expects to onboard all 20 Steadyhand staff. Steadyhand brings “an amazing team of talented individuals who really care about helping end consumers achieve their goals,” he said.

Gans said he sees opportunity to enhance Steadyhand’s client portal and client tools, although Steadyhand clients will see “a very consistent experience,” and Steadyhand’s model portfolios will continue to be “the core of the value proposition.”

Gans said wealth-based relationships with “deep” planning and advisor support will be core to Purpose’s business going forward. This acquisition “builds on our thesis and belief that advice-based relationships are essential,” Gans said. “We’re building out platforms to deliver that advice and those relationships through advisors to end clients.”

Steadyhand will amalgamate with Purpose Investments, which will manage Steadyhand’s funds and portfolios, the release said, and Steadyhand Investment Funds Inc. will operate as a subsidiary of Purpose.