CI Financial Corp. (“CI Financial”) (TSX: CIX) and One Capital Management, LLC (“One Capital”) announced that CI Financial has entered into an agreement to acquire a majority interest in One Capital. (“CI Financial builds on U.S. wealth expansion strategy with acquisition of a majority interest in RIA One Capital Management”)
Based in Westlake Village, California, One Capital is a Registered Investment Advisor (“RIA”) managing US$1.6 billion in client assets.
The transaction is part of CI Financial’s initiative to expand its wealth management platform and globalize the firm by building a U.S. presence through the acquisition of RIA firms. The deal is expected to close in the first quarter of 2020.
This is the second acquisition of an RIA in the past month. In late November, CI Financial acquired a majority interest in Surevest Wealth Management of Phoenix. (“CI Financial acquires majority stake in U.S. RIA firm Surevest Wealth Management”)
Prior to these acquisitions, CI Financial‘s wealth management businesses, including Assante Wealth Management (Canada) Limited and CI Private Counsel LP serviced 300,000 Canadian families and had C$48 billion in assets under management.
The terms of the One Capital and Surevest transactions were not disclosed.
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CI Financial Corp (TSX:CIX)
- www.cifinancial.com
- Headquartered in Toronto, Canada, CI Financial is an asset management and wealth management advisory holding company.
- Through its subsidiaries, the company firm manages separate client focused equity, fixed income, and alternative investments portfolios, and also manages mutual funds, hedge funds, and fund of funds.
- Its primary operating businesses are CI Investments Inc., Assante Wealth Management (Canada) Ltd., BBS Securities Inc., CI Private Counsel LP, and WealthBar Financial Services Inc.
- CI Financial is currently trading at $21.89, up almost 28% year-to-date, with a market cap of $4.9 billion.
Figure 1: CI Financial (TSX:CIX) – 1-Year Stock Chart
