CI Financial acquires majority stake in U.S. RIA firm Surevest Wealth Management
TORONTO (November 26, 2019) – CI Financial Corp. (“CI”) (TSX: CIX) announced today that it has acquired a majority stake in Surevest Wealth Management (“Surevest”), a Phoenix-based registered investment advisory firm.
The transaction is the first step in CI’s initiative to build a significant and growing presence in the U.S. registered investment advisor (“RIA”) market. This initiative supports two pillars of CI’s three strategic priorities – expanding its wealth management platform and globalizing the firm. The third strategic priority, as announced on November 7, 2019, is to modernize its asset management business.
“The U.S. has the world’s largest and most accessible wealth management market and RIAs are its fastest-growing segment,” said Kurt MacAlpine, CI Chief Executive Officer. “As a well-capitalized company with extensive experience in wealth management and a unique value proposition relative to other firms, CI is in a strong position to acquire leading RIAs and foster their continued expansion.”
As part of this initiative, CI has signed a letter of intent to acquire a second U.S.-based RIA firm and expects to announce the details of this transaction later this year.
“The role of financial advisors is more important today than ever before,” said Mr. MacAlpine. “They continue to provide tremendous value to clients in an increasingly complex and challenging financial environment and it’s that value which underlies the growth of RIAs. CI offers financial strength and wealth management expertise and we will be partnering with ambitious RIAs that are seeking to expand their businesses. Synergies with our existing wealth management business include the ability to offer clients a true cross-border wealth management solution.”
Surevest provides a wide range of fee-only financial planning and investment management services through offices in Phoenix and Los Angeles. It specializes in servicing high-net-worth individuals through a concierge approach to wealth management. Surevest is led by industry veteran Robert Luna, who founded the firm in 2002. He holds an MBA from the Anderson School at the University of California Los Angeles (UCLA) and the Certified Investment Management Analyst and Accredited Investment Fiduciary® designations. In addition to serving as Chief Executive Officer and Chief Investment Strategist, Mr. Luna regularly appears on CNBC, Fox Business News and other media outlets to offer his insights on the markets and business trends.
“Robert Luna is a well-respected industry leader who has built an outstanding team of highly qualified and experienced financial professionals and we are very proud to welcome them to CI,” Mr. MacAlpine said.
“I am thrilled to partner with CI as we grow our company,” Mr. Luna said. “They share our commitment to the value of advice and our approach of providing clients with a personalized and comprehensive approach to wealth management.”
CI’s wealth management businesses, including Assante Wealth Management (Canada) Limited and CI Private Counsel LP, have posted exceptional growth, reaching C$48 billion in assets under advisement as of October 31, 2019.
Terms of the Surevest transaction were not disclosed.
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$178 billion in fee-earning assets as of October 31, 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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