Canada’s National Bank Financial Group has bought a 12.5 per cent stake in Winnipeg brokerage firm Wellington West Holdings for $35.8 million to expand its wealth management operations throughout the country.

"Our investment reflects National Bank Financial Group's commitment to invest in wealth management businesses across the country and expand our distribution alternatives, even in the current challenging market environment," said Luc Paiement, National Bank's executive vice-president of wealth management in a statement.

Wellington has 48 branches across Canada, revenue of $134 million and approximately $10 billion in assets under management.

The deal will see National Bank paying $54.50 a share of the employee-owned Wellington, valuing the firm's shares based upon a recent $12.50 million rights issue by the firm.

Wellington has the option to receive another $35 million in additional financing from National Bank over the next the three years if it meets targets.

National Bank has first refusal to buy up to another five per cent of Wellington.

Last week National announced the purchase of wealth management company Retirement Option Group for an undisclosed sum.