CapIntel, which provides a management platform for wealth management firms, has penned a partnership deal with IG Wealth Management, the latter a part of the Power Financial Corporation group of companies.
Toronto-based CapIntel has developed a platform for wealth management firms that it says is meant to bridge “sales process gaps” and eliminate inefficiencies. The startup’s platform spans modelling investment comparisons, preparing compelling proposals, and tracking compliance checkpoints.
“IG Wealth Management is at the forefront of anticipating and addressing shifting client expectations.”
Founded in 2017, CapIntel claims to have over 9,000 advisors using its platform. Its website lists partnerships with BMO Insurance, BMO Globe Asset Management, and a couple of firms. CapIntel also claims to have three of the Big Five Banks using its platform.
Through the partnership with IG Wealth Management, over 3,000 of the firm’s Canadian advisors will use CapIntel’s technology.
“We’re continuously looking for ways to enhance the tools and resources our advisors have at their disposal to address evolving client needs efficiently,” said Damon Murchison, president and CEO of IG Wealth Management. “CapIntel was a perfect fit for us. They’re as passionate as we are about leveraging technology to improve the advisor and client experience.”
IG Wealth Management and CapIntel are planning to roll out the application to advisors this year, though did not provide a specific timeline.
IG Wealth Management is part of the IGM Financial group of companies, which, in turn, is part of Power Corp. IG Wealth Management provides consumers with financial planning and advisory services, with advisors across Canada. Its parent company is a leading diversified wealth and asset management company with approximately $265.2 billion in total assets under management and advisement as of September 30.
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“We are thrilled to announce this partnership with IG Wealth Management,” said James Rockwood, CEO of CapIntel. “As one of Canada’s largest wealth and asset management companies, this partnership demonstrates the value of our product and marks a shift towards wealth managers and financial advisors focusing their efforts on creating better client experiences.”
CapIntel has raised over $2 million from angel investors, to date, through Creative Destruction Lab and NEXT Founders, which it participated in.
Making partnerships for Canadian startups is nothing new for IG Wealth Management. Last year, it penned a deal with Winnipeg FinTech startup Conquest Planning as IGM Financial invested in the company alongside Portage Ventures (the venture capital arm of subsidiary Sagard Holdings, a subsidiary of Power Corp.).
Investing in Canadian FinTech companies has been an active strategy for the Power Corp group of companies, led by Paul Desmarais III (chairman and CEO of Sagard). Through its holdings, Sagard’s portfolio includes significant investments in Wealthsimple, Borrowell, Koho, League, and Dialogue.
The Power Corp. group of companies’ biggest payoff in the space to date has been Wealthsimple. A hit with Canadian consumers, Wealthsimple secured $750 million CAD at a $5 billion valuation in May. This included a $500 million secondary offering to the PCC Group, which consists of Power Corp, IGM Financial, and Great-West Lifeco. The PCC Group continues to be the largest shareholder in Wealthsimple with a combined 43 percent equity interest and 60 percent of the voting rights, an interest that is valued at $2.1 billion (an 8.3 times increase and a compound annual return on investment of 79 percent).
