Transaction increases CI’s U.S. assets to
$55 billion and expands presence to key southeast
region
CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX), a diversified
global asset and wealth management company, today announced an
agreement to acquire Brightworth, LLC (“Brightworth”) of Atlanta, a
registered investment advisor with approximately US$4.7 billion1 in
assets.
This and other recently announced transactions are expected to
more than double CI’s U.S. assets to approximately US$55 billion2,
continuing CI’s rapid growth in wealth management.
Brightworth provides comprehensive investment advisory and
financial planning services to high-net-worth individuals,
families, business owners, trusts, estates, charitable
organizations, pension and profit-sharing plans from offices in
Atlanta and Charlotte, NC. The firm’s expertise includes
specialized practices focused on corporate professionals and
executives, dental industry professionals, and business owners
through its business exit and transition services group.
“We’re thrilled that the dynamic team at Brightworth has chosen
to join CI,” said CI Chief Executive Officer Kurt MacAlpine. “They
have built an exceptional firm based on a comprehensive,
multi-generational approach to wealth planning combined with
outstanding service. Additionally, they have developed expert teams
offering highly tailored services to affluent client segments such
as executives, business owners and dentists.”
The acquisition of Brightworth extends CI’s presence into the
strategic southeast market, with Atlanta alone being one of the
country’s largest urban economies and home to numerous Fortune 500
companies.
“We are excited to join CI and believe we have found the ideal
partner and platform to best serve our clients’ growing needs and
provide greater professional opportunities for our employees,” said
Ray Padrón, Brightworth Chief Executive Officer. “CI and its other
partner firms bring a depth of knowledge, experience and resources
that will allow us to fully recognize our commitment to service
excellence and provide a best-in-class client experience. As a
leading firm in our region, we look forward to joining CI’s dynamic
network of firms to help build a leading integrated private wealth
platform that will influence the future direction of wealth
management in North America and globally.”
Supporting the transaction was Emigrant Partners, LLC (“Emigrant
Partners”)/Fiduciary Network, LLC, which has agreed to sell its
minority interest in Brightworth to CI.
“We have had an incredible experience with Brightworth and look
forward to continuing to collaborate with CI strategically,” said
Karl Heckenberg, Chief Executive Officer of Emigrant Partners. “CI
has become a dominant player as a majority acquirer, and the
relationship between CI and our parent, New York Private Bank &
Trust, is an exciting development for our business. The U.S. wealth
management space is growing quickly and establishing a relationship
with CI is a natural progression as Emigrant looks to expand our
offering.”
This transaction is CI’s 16th since it entered the U.S.
registered investment advisor (“RIA”) market in January 2020
(including acquisitions by CI-affiliated RIAs). When this and other
outstanding transactions are completed, CI’s U.S. network will have
offices in 15 states and a total of approximately US$55 billion in
assets – boosting CI’s total assets globally to approximately
US$216 billion (C$276 billion)2. CI’s U.S expansion reflects its
strategic priorities of globalizing the firm and expanding its
wealth management platform. As part of this, CI will extend the CI
Private Wealth brand to its operations in the United States in the
months ahead.
This transaction is expected to close in the second quarter of
2021, subject to regulatory, stock exchange and other customary
closing conditions. Financial terms were not disclosed.
Brightworth was advised by the Asset & Wealth Management
Investment Banking team of Raymond James Financial, Inc. and Alston
& Bird LLP. CI was advised by Hogan Lovells US LLP.
About CI Financial
CI Financial Corp. is an independent company offering global
asset management and wealth management advisory services. CI
managed and advised on approximately C$236.5 billion (US$185.7
billion) in client assets as at February 28, 2021. CI’s primary
asset management businesses are CI Global Asset Management (CI
Investments Inc.) and GSFM Pty Ltd., and it operates in Canadian
wealth management through Assante Wealth Management (Canada) Ltd.,
CI Private Counsel LP, Aligned Capital Partners Inc., CI Direct
Investing (WealthBar Financial Services Inc.), and CI Investment
Services Inc.
CI’s U.S. wealth management businesses consist of BDF LLC,
Bowling Portfolio Management LLC, The Cabana Group, LLC, Congress
Wealth Management, LLC, Doyle Wealth Management, LLC, One Capital
Management, LLC, The Roosevelt Investment Group, LLC, RGT Wealth
Advisors, LLC, Stavis & Cohen Private Wealth, LLC and Surevest
LLC.
CI is listed on the Toronto Stock Exchange under CIX and on the
New York Stock Exchange under CIXX. Further information is
available at www.cifinancial.com.
1 As at February 28, 2021.
2 Projections assume the completion of
transactions with Brightworth, Barrett Asset Management, LLC
(“Barrett”) of New York, and Segall Bryant & Hamill, LLC
(“SBH”) of Chicago and are based on asset levels as at February 28,
2021.
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI Financial Corp.
(“CI”) and its products and services, including its business
operations, strategy and financial performance and condition.
Forward-looking statements are typically identified by words such
as “believe”, “expect”, “foresee”, “forecast”, “anticipate”,
“intend”, “estimate”, “goal”, “plan” and “project” and similar
references to future periods, or conditional verbs such as “will”,
“may”, “should”, “could” or “would”. These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which by their nature are inherently
uncertain and beyond management’s control. Although management
believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, such statements
involve risks and uncertainties. The material factors and
assumptions applied in reaching the conclusions contained in these
forward-looking statements include that the acquisitions of
Brightworth, Barrett and SBH will be completed and their asset
levels will remain stable, the investment fund industry will remain
stable and that interest rates will remain relatively stable.
Factors that could cause actual results to differ materially from
expectations include, among other things, general economic and
market conditions, including interest and foreign exchange rates,
global financial markets, changes in government regulations or in
tax laws, industry competition, technological developments and
other factors described or discussed in CI’s disclosure materials
filed with applicable securities regulatory authorities from time
to time. The foregoing list is not exhaustive and the reader is
cautioned to consider these and other factors carefully and not to
place undue reliance on forward-looking statements. Other than as
specifically required by applicable law, CI undertakes no
obligation to update or alter any forward-looking statement after
the date on which it is made, whether to reflect new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210315005212/en/
Investor Relations Jason Weyeneth, CFA Vice-President,
Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com
Media Relations United States Bernardo Soriano,
Gregory FCA for CI Financial 914-656-3880
cifinancial@gregoryfca.com
Canada Murray Oxby Vice-President, Corporate
Communications 416-681-3254 moxby@ci.com
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