CI Financial completes acquisition of a majority stake in Aligned Capital; CI’s total assets surpass $200 billion for the first time

TORONTO (October 20, 2020) – CI Financial Corp. (“CI”) (TSX: CIX) today announced it has completed the acquisition of a majority interest in Aligned Capital Partners Inc. (“Aligned Capital”), 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.

 

About CI Financial

 

CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. 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.), CI Investment Services (BBS Securities Inc.), Balasa Dinverno Foltz LLC, The Cabana Group, LLC, Congress Wealth Management, LLC, One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.

 

All financial amounts in Canadian dollars unless otherwise specified.

 

The Growth 500 rankings are compiled annually by Canadian Business based on five-year revenue growth. Companies must apply to be considered. For more information, go to: https://www.canadianbusiness.com/growth-500-canadas-fastest-growing-companies/.

 

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.

 

For further information:

CI Financial Corp.

Murray Oxby

Vice-President, Corporate Communications

416-681-3254

moxby@ci.com

GET THE LATEST NEWS

Enter your e-mail address to have CI Financial news and announcements delivered directly to your inbox.


CONTACT US

How can we help you?

HEAD OFFICE

2 Queen Street East,
Twentieth Floor
Toronto, Ontario
M5C 3G7
(416) 364-1145
1-800-268-9374

 

INVESTOR RELATIONS

Douglas J. Jamieson

Executive Vice-President, Finance

and Chief Financial Officer

(416) 681-6508

 

MEDIA CONTACT

Murray Oxby

Vice-President,

Corporate Communications

(416) 681-3254

 

REGISTRAR & TRANSFER AGENT

Computershare Investor Services

100 University Avenue,

Eighth Floor

Toronto, Ontario

M5J 2Y1

1-800-564-6253