CI’s U.S. wealth management assets surpass
US$100 billion in less than two years
CI Financial Corp. (“CI”) (TSX: CIX, NYSE: CIXX) and
RegentAtlantic Capital, LLC (“RegentAtlantic”) today announced an
agreement under which CI will acquire RegentAtlantic, a registered
investment advisor with US$6.0 billion in assets under
management.
Founded in 1982, RegentAtlantic serves high-net-worth
individuals and families and institutions on the East Coast and
across the United States from offices in Morristown, N.J., and New
York City. It offers a comprehensive range of wealth planning
services, including financial planning and investment management,
customized to the needs of each client.
“RegentAtlantic’s success stems from a disciplined wealth
management process focused on the distinct needs of high-net-worth
clients, an approach that has created deep client loyalty and
contributed to the firm’s strong growth,” said Kurt MacAlpine, CI
Chief Executive Officer. “RegentAtlantic is a great strategic and
cultural fit with the existing firms and leadership within CI
Private Wealth and fully supports our vision of building the
country’s leading wealth management firm.”
“There is an ever-growing need for quality financial advice and
that presents an opportunity for firms like ours. CI Private Wealth
will be the ideal partner for our team as we embark on the next
phase of our growth and development,” said George Stapleton, Chief
Executive Officer of RegentAtlantic. “We look forward to working
with our CI Private Wealth colleagues, who represent some of
America’s other leading RIAs, and are confident this collaboration
will benefit our team and our clients.”
As part of the transaction, all partners in RegentAtlantic will
become equity partners in CI Private Wealth, the private
partnership that will hold CI’s U.S. wealth management business. As
part of the transaction, Fiduciary Network, LLC (“FN”) which first
invested in RegentAtlantic in 2007, exchanged convertible
indebtedness of Regent into non-convertible, unsecured,
fixed-interest indebtedness of CI Financial with a term of three
years, subject to early repayment rights of FN and prepayment
rights of CI Financial.
RegentAtlantic’s accolades include being named to the Barron’s
list of Top 100 RIA Firms in 2020 and 2021, and the Financial Times
list of Top 300 RIAs in 2020. The firm’s offering includes
specialty service areas focused on business owners, corporate
executives, non-profits, food and beverage industry entrepreneurs,
women on Wall Street, retirement, senior care, and collectibles. It
also provides private trust services through RegentAtlantic Private
Trust and 401(K) plan management for businesses.
RegentAtlantic will deepen CI’s presence on the East Coast and
be CI’s third RIA affiliate with an office in New York City.
The transaction will also push CI’s U.S. assets past the
US$100-billion mark for the first time since CI entered the U.S.
wealth management sector in January 2020 – making CI one of the
industry’s fastest-growing firms. Following the completion of all
announced transactions, CI’s U.S. assets are expected to reach
approximately US$105 billion (C$130 billion), while its total
assets globally are anticipated to reach US$291 billion (C$360
billion).
This transaction is expected to close later this month, subject
to regulatory and other customary closing conditions. The Asset
& Wealth Management Investment Banking Group of Raymond James
& Associates, Inc. served as advisors to RegentAtlantic. CI was
advised by Hogan Lovells US LLP. Financial terms were not
disclosed.
Asset amounts are as at November 30, 2021 for RegentAtlantic and
October 31, 2021 for CI.
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$331.8 billion (US$267.8
billion) in client assets as at October 31, 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 CI Assante Wealth Management (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 Barrett Asset
Management, LLC, BDF LLC, Budros, Ruhlin & Roe, Inc., Bowling
Portfolio Management LLC, Brightworth, LLC, The Cabana Group, LLC,
Congress Wealth Management, LLC, Dowling & Yahnke, LLC, Doyle
Wealth Management, LLC, Matrix Capital Advisors, LLC, McCutchen
Group LLC, One Capital Management, LLC, Portola Partners Group LLC,
Radnor Financial Advisors, LLC, The Roosevelt Investment Group,
LLC, RGT Wealth Advisors, LLC, Segall Bryant & Hamill, 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.
Participation in Barron’s Top 100 RIA Firms ranking is by
invitation only and limited to firms that meet the minimum
eligibility requirements. As with all Barron’s rankings, Barron’s
does not disclose the proprietary formula. Some general guidance on
Barron’s methodology: Participating firms were evaluated and ranked
on a wide range of quantitative and qualitative data, including
assets overseen by the firm, revenue generated by the firm, level
of technology spending, number of clients, size of staff, diversity
across staff, and placement of a succession plan. The number of
firms invited to participate in 2021 was not disclosed by Barron’s
nor were the number of firms that meet the legibility requirements.
The ranking is not indicative of the RegentAtlantic’s past or
future performance. Neither the Firm nor its executives pay a fee
to Barron’s in exchange for the ranking. Barron’s is a registered
trademark of Dow Jones & Company, L.P. All rights reserved.
The Financial Times 300 Top Registered Investment Advisers is an
independent listing produced annually by Ignites Research, a
division of Money-Media, Inc., on behalf of the Financial Times.
The FT 300 is based on data gathered from RIA firms, regulatory
disclosures, and the FT’s research. The listing reflected each
practice’s performance in six primary areas: assets under
management, asset growth, compliance record, years in existence,
credentials and online accessibility. Over 750 qualified firms
applied for the award, 20 of which have offices in New Jersey, and
300 were selected (40%). This award does not evaluate the quality
of services provided to clients and is not indicative of the
practice’s future performance. Neither the RIA firms nor their
employees pay a fee to The Financial Times in exchange for
inclusion in the FT 300.
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
RegentAtlantic, GLAS Funds, LLC, Gofen and Glossberg, LLC, and R.H.
Bluestein & Co. will be completed and their asset levels will
remain stable, that 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/20211206005195/en/
Investor Relations Jason Weyeneth, CFA Vice-President,
Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com
Media Relations United States Trevor Davis, Gregory FCA
for CI Financial 443-248-0359 cifinancial@gregoryfca.com
Canada Murray Oxby Vice-President, Corporate Communications
416-681-3254 moxby@ci.com
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