CI Financial to acquire Bowling Portfolio Management of Cincinnati, its ninth RIA transaction in 2020
TORONTO (September 21, 2020) – CI Financial Corp. (“CI”) (TSX: CIX) and Bowling Portfolio Management LLC (“Bowling”) of Cincinnati, Ohio, announced an agreement today under which CI will acquire full ownership of Bowling, a woman-owned registered investment advisory firm with US$450 million in assets under management.
Bowling represents CI’s sixth direct registered investment advisor (“RIA”) transaction this year and ninth overall (including acquisitions by affiliated RIAs), making CI one of the fastest-growing RIA platforms in the United States. When all pending transactions close, CI will hold interests in wealth management firms across the U.S. with combined assets of approximately US$11.5 billion (based on assets as of August 31, 2020).
Bowling provides customized financial planning and investment management services to high-net-worth clients. The firm is led by principals Kathy Wayner, President, Chief Executive Officer and Managing Partner, and Darren Kavesh, Chief Investment Officer and Managing Partner. The firm is a Women's Business Enterprise National Council-certified woman-owned business and has been a stalwart in the Cincinnati market since its founding in 1982.
“Bowling has outstanding leadership and a team whose investment expertise and service excellence have earned the loyalty of generations of clients,” said Kurt MacAlpine, CI Chief Executive Officer. “The acquisition of Bowling gives us a presence in Cincinnati, a strategically important business hub, and expands our business in the region. With our recent acquisition of Balasa Dinverno Foltz of Itasca, Illinois, our CI Private Wealth companies will be managing approximately US$5 billion of high-net-worth assets in the Midwest.”
“We are excited to be joining with CI in its strategy of building a new wealth management business,” said Ms. Wayner. “CI will be a great partner for our firm and our employees with its plans for growth locally and nationally. This relationship will also be incredibly beneficial for our clients, given the breadth and depth of CI’s capabilities in serving high-net-worth individuals, families and business owners.”
With the purchase of Bowling, CI continues to execute its ambitious plan to build a substantial, growing U.S. wealth management division through the purchase of quality RIAs in key locations. As part of this strategy, CI will be introducing the CI Private Wealth brand in Canada and the United States to represent its high-net-worth and ultra-high-net-worth advisory businesses.
Following the close of the Bowling transaction, Mr. Kavesh will be named President and Chief Executive Officer. Ms. Wayner will remain with the firm in a consulting capacity.
“Our team is thrilled to partner with CI, a company with decades of experience in wealth management,” said Mr. Kavesh. “Their expertise in providing comprehensive wealth solutions that address all aspects of a client’s financial life will help us provide the best possible services and drive the continued growth of the firm.”
The transaction, which is subject to regulatory approval, is scheduled to close later this year. Terms were not disclosed. Park Sutton Advisors LLC served as exclusive financial advisor to Bowling in this transaction with legal representation by Katz Teller Brant & Hild.
CI’s U.S. expansion, which began in the first quarter of 2020, supports strategic priorities of expanding its wealth management platform and globalizing the firm. CI 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.
CI is also a leader in the Canadian wealth management market, where its businesses include Assante Wealth Management and CI Private Counsel LP and assets total $50.7 billion (as of August 31, 2020). Following the previously announced acquisition of a majority interest in Aligned Capital Partners Inc. of Burlington, Ontario, CI’s North American wealth management business will reach approximately $75 billion (US$57 billion), representing a growth rate of 58% over August 31, 2019.
About CI Financial
CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI held approximately $189 billion (US$143 billion) in total assets as of August 31, 2020. CI’s primary asset management businesses are CI Investments Inc. and GSFM Pty Ltd., and it operates in wealth management through Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, CI Direct Investing (WealthBar Financial Services Inc.), BBS Securities Inc., Balasa Dinverno Foltz LLC, The Cabana Group, LLC, Congress Wealth Management, One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.
All financial amounts in Canadian dollars unless otherwise specified.
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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