CI Financial nearly triples net income in fourth quarter

Global wealth firm sees 33% full-year revenue growth following gains from U.S. acquisitions

CI Financial nearly triples net income in fourth quarter

CI Financial has capped off its latest quarter with a near-tripling of its net income and substantial gains from recent U.S. wealth firm acquisitions.

Counting certain adjustments related to its acquisitions, legal and restructuring charges, and other factors, CI announced that it collected $123.7 million in net income for the fourth quarter, compared to $43.8 million in the previous period.

During the most recent quarter, CI finalized the acquisitions of eight registered investment advisors in the U.S., all focused on high-net-worth and ultra-high-net-worth clients, with combined assets of approximately $43.3 billion. It also acquired minority stakes in two alternative investment firms: Columbia Pacific Advisors, LLC of Seattle, and GLAS Funds, LLC of Cleveland.

The firm’s total revenues for the quarter grew by 15.3% as compared to the third quarter, while its total expenses decreased slightly.

Looking at the whole of 2021, CI’s revenues reached $2.7 billion off the back of 33% annual growth, reflecting the impact of acquisitions, favorable market conditions and positive organic growth across the franchise. Those acquisitions, as well as higher variable costs associated with higher asset levels, led expenses to grow 52% to $2.1 billion.

“In the U.S., we significantly expanded our wealth management business by completing the acquisitions of eight registered investment advisors and taking minority stakes in two alternative asset managers in the fourth quarter alone,” said CI CEO Kurt MacAlpine. “At $151 billion in assets, U.S. wealth management is now our largest business line.”

CI’s Canadian wealth platform grew by 20% year-on-year to $80.6 billion. AUM in the firm’s asset-management business rose by 11% from a combination of strong investment performance and positive net sales.

“The significant turnaround in net sales stems from actions taken to modernize our asset management business, including integrating our boutique investment teams into a single global platform and introducing a broad range of innovative investment solutions,” MacAlpine said.

CI is continuing on its U.S. acquisition path. It has entered into an agreement to acquire Corient Capital Partners, LLC, a Newport Beach-based wealth management firm that oversees US$5.0 billion on behalf of ultra-high-net-worth individuals and families across the U.S.

“The team’s extensive experience and success in serving ultra-high-net-worth individuals and families will deepen CI Private Wealth’s presence and expertise in this important segment, and Corient’s location in the Los Angeles region, one of the country’s largest and most dynamic economies, is a solid foundation for continued strong growth,” MacAlpine said.