Toronto company to acquire $4.7 billion Atlanta-based private wealth firm
CI Financial Corp. has announced an agreement to acquire Brightworth, of Atlanta, a registered investment advisor with approximately US$4.7 billion in assets.
This and other recently announced transactions are expected to more than double CI’s U.S. assets to approximately US$55 billion, continuing CI’s rapid growth in wealth management.
Brightworth provides comprehensive investment advisory and financial planning services to high-net-worth individuals, families, business owners, trusts, estates, charitable organizations, pension and profit-sharing plans from offices in Atlanta and Charlotte, NC. The firm’s expertise includes specialized practices focused on corporate professionals and executives, dental industry professionals, and business owners through its business exit and transition services group.
“We’re thrilled that the dynamic team at Brightworth has chosen to join CI,” said CI Chief Executive Officer Kurt MacAlpine. “They have built an exceptional firm based on a comprehensive, multi-generational approach to wealth planning combined with outstanding service. Additionally, they have developed expert teams offering highly tailored services to affluent client segments such as executives, business owners and dentists.”
The acquisition of Brightworth extends CI’s presence into the strategic southeast market, with Atlanta alone being one of the country’s largest urban economies and home to numerous Fortune 500 companies.
“We are excited to join CI and believe we have found the ideal partner and platform to best serve our clients’ growing needs and provide greater professional opportunities for our employees,” said Ray Padrón, Brightworth Chief Executive Officer.
“CI and its other partner firms bring a depth of knowledge, experience and resources that will allow us to fully recognize our commitment to service excellence and provide a best-in-class client experience. As a leading firm in our region, we look forward to joining CI’s dynamic network of firms to help build a leading integrated private wealth platform that will influence the future direction of wealth management in North America and globally.”
Supporting the transaction was Emigrant Partners, which has agreed to sell its minority interest in Brightworth to CI.
“We have had an incredible experience with Brightworth and look forward to continuing to collaborate with CI strategically,” said Karl Heckenberg, Chief Executive Officer of Emigrant Partners. “CI has become a dominant player as a majority acquirer, and the relationship between CI and our parent, New York Private Bank & Trust, is an exciting development for our business. The U.S. wealth management space is growing quickly and establishing a relationship with CI is a natural progression as Emigrant looks to expand our offering.”
This transaction is CI’s 16th since it entered the U.S. registered investment advisor market in January 2020 (including acquisitions by CI-affiliated RIAs). When this and other outstanding transactions are completed, CI’s U.S. network will have offices in 15 states and a total of approximately US$55 billion in assets – boosting CI’s total assets globally to approximately US$216 billion (C$276 billion)2. CI’s U.S expansion reflects its strategic priorities of globalizing the firm and expanding its wealth management platform. As part of this, CI will extend the CI Private Wealth brand to its operations in the United States in the months ahead.
This transaction is expected to close in the second quarter of 2021, subject to regulatory, stock exchange and other customary closing conditions. Financial terms were not disclosed.
Brightworth was advised by the Asset & Wealth Management Investment Banking team of Raymond James Financial, Inc. and Alston & Bird LLP. CI was advised by Hogan Lovells US LLP.
