Firm takes total assets to $204 billion, with approximately 1,100 advisory teams in Canada alone
CI Financial Corp. has completed the acquisition of a majority interest in Aligned Capital Partners Inc., a full-service investment advisory firm based in Burlington, Ontario with over 200 financial advisors administering approximately $10 billion in assets.
The acquisition, which was first announced on August 5, 2020, significantly expands CI's presence in the Canadian wealth management sector and increases CI's total assets to $204 billion – exceeding $200 billion for the first time in the company's history.
In Canada, CI now has approximately $61 billion in wealth management assets – a 20% increase – and 1,100 advisor teams. Including CI's U.S. businesses, CI's wealth management assets now total a record $76 billion. (Totals based on assets as of September 30, 2020.)
"We are proud to welcome Aligned Capital and its advisors to the CI Financial group," said Kurt MacAlpine, CI Chief Executive Officer. "The Aligned team has achieved rapid growth due to its innovation, exceptional support for advisors and commitment to improving clients' lives. The firm is an excellent fit for CI."
Aligned Capital achieved revenue growth of 1,237% from 2013-2018, ranking first in wealth management, sixth in financial services and 78th overall on the 2019 Growth 500 list of Canada's fastest-growing companies. The company will continue to be operated by its existing management team led by Christopher Enright, Founding Partner, President and Managing Director, and Michael Greer, Founding Partner, Executive Vice-President and Managing Director.
"CI's financial strength and extensive experience in wealth management make them the ideal partner for us, our advisors and our clients," said Mr. Enright. "Most importantly, we share a vision for wealth management centred on supporting advisors with the tools and resources they need to provide a high level of service customized to the individual objectives of each client."
"This transaction is a major step forward in executing on our strategic priority of expanding CI's wealth management platform," said Mr. MacAlpine. "For the year-to-date, we have onboarded $27 billion in new advisor assets, versus $1 billion in each of 2019, 2018, and 2017. Our growing scale in wealth management will allow us to realize important synergies while supporting continued investment in enhanced services for clients and advisors."
In addition to the acquisition of Aligned Capital, CI has built its wealth management platform through growth in its existing Canadian wealth business, which includes Assante Wealth Management (Canada) Limited and CI Private Counsel LP, and through six direct acquisitions of U.S. registered investment advisor ("RIA") firms and three indirect transactions (made by the affiliated RIAs).
CI has agreed to acquire Bowling Portfolio Management LLC of Cincinnati, Ohio, and holds ownership interests in:
- Balasa Dinverno Foltz LLC ("BDF") of Itasca, Illinois
- The Cabana Group, LLC, of Fayetteville, Arkansas
- Congress Wealth Management, LLC of Boston, Massachusetts
- One Capital Management, LLC, of Westlake Village, California
- Surevest, LLC, of Phoenix, Arizona.
In 2019, CI adopted the strategic priorities of expanding its wealth management platform, as well as modernizing its asset management business and globalizing the firm.