TORONTO (December 23, 2019) – CI Financial Corp. (“CI”) (TSX: CIX) and One Capital Management, LLC (“One Capital”) announced today that CI has entered into an agreement to acquire a majority interest in One Capital, a registered investment advisor managing US$1.6 billion in client assets based in Westlake Village, California.
The transaction is part of CI’s initiative to build a U.S. presence through the acquisition and expansion of registered investment advisor (“RIA”) firms, the fastest-growing segment of the American wealth management sector. This is CI’s second acquisition of an RIA in the past four weeks. In late November, CI agreed to acquire a majority interest in Surevest Wealth Management of Phoenix.
“Last month, we rolled out a new strategic direction for CI Financial, centered on three priorities – modernizing asset management, expanding wealth management and globalizing the company,” said Kurt MacAlpine, Chief Executive Officer of CI. “Our acquisition of One Capital expands and strengthens our wealth management platform and helps to globalize our company.”
One Capital is a highly successful and uniquely positioned wealth management company. It has strong leadership and well-developed expertise in advanced wealth planning, including specializations in family office services and a division focused on the needs of professional athletes and entertainers. One Capital has developed a robust cross-border servicing capability that CI will make available to the 300,000 Canadian families that have their primary financial relationship with CI’s wealth management companies.
“CI Financial is an ideal partner as we embark on the next stage of our firm’s development,” said Patrick Bowen, President of One Capital. “CI provides financial strength, capabilities in operations and technology, and the experience and expertise developed in operating one of Canada’s largest wealth management firms. Most importantly, CI is fully committed to this market and to supporting our growth aspirations, which are based on a deep understanding of our clients and a marriage of investment management with advanced wealth planning.”
“I firmly believe that the role of the financial advisor is more important today than ever before, given the changes in pension systems, combined with extended longevity and increasing complexity throughout retirement,” Mr. MacAlpine said. “CI Financial, through its existing businesses in Canada and its new businesses in the U.S., is well positioned to capitalize on this opportunity.
“We are making significant investments to position CI as the most attractive wealth planning destination for clients and for financial advisors seeking a partner to help them grow and expand their businesses.”
CI has established leadership in the Canadian wealth management sector through Assante Wealth Management (Canada) Limited and CI Private Counsel LP, which together accounted for approximately C$48.4 billion in assets under advisement as of November 30, 2019.
The transaction is expected to close in the first quarter of 2020. Terms were not disclosed. For more information on One Capital, please visit its website.
About CI Financial
CI Financial Corp. (TSX: CIX) is an independent Canadian company offering global asset management and wealth management advisory services. CI held approximately C$180 billion in fee-earning assets as of November 30, 2019. Its primary operating businesses are CI Investments Inc., Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, GSFM Pty Ltd., WealthBar Financial Services Inc., and BBS Securities Inc. Further information is available at www.cifinancial.com.
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 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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