CI Financial Corp. continues to expand into the U.S. wealth management market with the purchase of two registered investment advisory companies and an application to list its shares on the New York Stock Exchange.
The investment giant, which has about $202-billion in assets under management, announced on Thursday it has filed a registration statement with the U.S. Securities and Exchange Commission asking for approval to list the company’s common shares on the NYSE.
“The timing for this listing makes sense, given the rapid growth in our U.S. wealth management business,” CI’s chief executive officer, Kurt MacAlpine, said in a statement.
Mr. MacAlpine said the move to a U.S. exchange will “broaden” the company’s investor base and increase CI’s corporate profile in the U.S. market.
At the same time, the company announced plans to buy 100 per cent of Florida-based Doyle Wealth Management, a registered investment adviser (RIA) company that manages about US$1.1-billion in assets. Co-founders Robert Doyle and Jillian Doyle will continue to lead the company after the close later this year.
The company’s location, the Tampa Bay area, is popular with Canadian snowbirds, and the expansion will allow CI and Doyle to offer cross-border services to Canadian clients, Mr. MacAlpine said.
This is the second deal this week by CI, which on Tuesday bought a majority interest in Stavis & Cohen Financial LLC, a Houston-based RIA firm that manages about US$570-million in assets. The company is led by co-founders Deborah Stavis, who is CEO, and Eddie Cohen, who is chief investment officer.
“Their specialization in serving corporate executives in the oil and gas sector presents strategic synergies with our Western Canadian wealth management business, allowing us to seamlessly serve industry clients both north and south of the border,” Mr. MacAlpine said earlier this week when the deal was announced.
Terms of the two latest deals were not disclosed, but both are expected to close by the end of the year.
In the United States, an RIA company typically follows an independent business model – meaning it is not part of a larger brokerage – and advisers have a legal fiduciary obligation to act in the best interests of clients. The U.S. RIA market has more than 17,000 companies, but has seen a wave of consolidation in recent years.
The two deals are in line with CI’s plans to globalize the company while growing its wealth-management businesses. Since entering the U.S. market in February, CI has boosted its U.S. wealth assets under management to more than US$14-billion through 11 RIA acquisitions in California, Arizona, Texas, Florida, Arkansas, Illinois, Ohio and Massachusetts. As part of its strategy, CI will also introduce the CI Private Wealth brand in Canada and the United States to encompass its high-net-worth and ultrahigh-net-worth advisory businesses.
Mr. MacAlpine said the NYSE listing will support the acquisition of more U.S. wealth management firms "by allowing us to offer CI Financial stock as part of the purchase price, an attractive option for many sellers.”
Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.