TORONTO, Sept. 21, 2020 /PRNewswire/ - 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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SOURCE CI Financial Corp.