Harbourfront Wealth Group plans to return approximately $1 billion to its advisers, employees, and other shareholders following a strategic investment from Boston-based private equity firm Berkshire Partners, the Vancouver-based wealth manager announced. While details regarding the size of Berkshire’s investment or stake were not disclosed, Harbourfront’s founder and executive chair, Danny Popescu, confirmed the intended shareholder distribution.

Advisers at the firm have been given the choice to sell their shares to Berkshire for cash or to roll over their ownership stake and continue growing their businesses within Harbourfront. The new investment is expected to enable Harbourfront to further invest in technology and human resources through operating cash flow.

Popescu outlined a strategy for Harbourfront to pursue partial share sales to private equity investors approximately every five years, providing advisers with periodic liquidity options. The company has received multiple offers from private equity and pension funds over the past two years but chose Berkshire for its alignment with growth plans and a valuation that was deemed satisfactory. Harbourfront currently manages $22 billion in assets under administration (AUA), with the Berkshire deal valuing the firm at approximately $1.78 billion.

This investment serves as a second endorsement of Harbourfront’s ownership model, which emphasizes adviser independence, Popescu said. The firm’s initial private equity backing came in 2022 from Boston-based Audax Private Equity, when Harbourfront managed about $4 billion in AUA and was valued at $425 million. Audax will retain a significant interest in Harbourfront following the completion of the Berkshire deal.

Founded in 2013, Harbourfront employs 600 people across more than 60 branches and operates through a regulated investment dealer, an investment counsel portfolio management division, an estate planning firm, and a U.S. registered investment adviser (RIA). The firm has expanded its AUA more than fivefold in four years through organic growth, adviser recruitment, and acquisitions. Earlier this year, Harbourfront appointed Richard McIntyre as chief executive officer.

On June 4, shortly before announcing the Berkshire partnership, Harbourfront acquired Cumberland Partners Ltd., a Toronto- and Calgary-based wealth and investment manager with $5 billion in AUA. This marked Harbourfront’s fifth acquisition since 2023.

Industry observers view Berkshire’s investment as part of a broader trend of U.S. private equity firms targeting Canadian independent wealth managers. Joe Millott, partner at Fort Capital Partners in Toronto, noted that Canadian independent wealth managers have traditionally traded at lower valuation multiples than their U.S. counterparts, despite offering attractive growth prospects, making Canada an appealing market for U.S. investors.

Similar activity has been seen from U.S. consolidators such as Focus Financial Partners and Corient Private Wealth LLC, both expanding their presence in Canada through acquisitions and organic growth.

Popescu highlighted that the Canadian wealth management sector is approximately 15 years behind the U.S. in advisers transitioning from traditional brokerages to independent models. He noted that much of Canada’s wealth remains with banks, but the shift toward independence is accelerating. Harbourfront aims to capitalize on this trend by attracting advisers seeking alternatives to large conglomerates, with plans to grow its enterprise value by roughly four times over the next five years.

Popescu envisions Harbourfront becoming a leader in the independent wealth management space over the next two decades.

The Berkshire transaction remains subject to regulatory approvals and is expected to close in the second half of 2026.