Edmonton-based exempt-market dealer Raintree Capital Inc. moved into the portfolio management business with the launch of Raintree Wealth Management.
“[The platform will] provide a more holistic approach for all of our clients,” says Peter Kinkaide, CEO of both Raintree Capital and it’s new wealth-management division.
The wealth-management arm is meant to expand Raintree’s current “Core + Explore” investment philosophy, in which Raintree Financial Solutions offers investors private securities while their traditional investments are handled by a portfolio manager.
In the past, Raintree’s 60 registered financial advisors would refer clients to a third-party manager to handle the “core” portion of a client’s portfolio. Some of those managers have included Toronto-based Newport Private Wealth Inc., Vancouver-based Connor Clark & Lunn Investment Management and Toronto-based robo-advisor Wealthsimple Financial Inc.
Now, Raintree advisors have the option to either continue referring clients to those same managers or to Raintree’s own discretionary platform.
“Historically, we’ve partnered with third-party portfolio managers,” says Kinkaide, “but now we’re entering into the business directly as a portfolio manager as well.”
Raintree is currently licensed in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec and has placed more than $700 million into alternative investments and referred over $350 million to portfolio managers.
Raintree’s move into wealth management is part of the firm’s plans to expand not just its business, but its advisor force as well.
“We really think we have a unique model that’s going to be very attractive to advisors,” Kinkaide says, “particularly in a new CRM2 environment.”