It is the Toronto-based asset manager's largest US acquisition to date
CI Financial (CI) has announced a deal that gives a significant boost to its ambitions to build a globalized firm.
The asset manager is to acquire the Dallas-based registered investment advisor (RIA) RGT Wealth Advisors LLC (RGT) in a cash and shares deal. RGT has approximately US$4.7 billion in wealth assets.
The acquisition is CI’s largest US transaction to date and is projected to grow the Toronto-headquartered firm’s US wealth assets to US$21 billion. It recently announced “incredible progress” in its third quarter results.
CI Financial’s chief executive, Kurt MacAlpine, says RGT is a growing firm with strong leadership and in a key market.
“RGT provides CI with a leading presence in the important and fast-growing Texas market, one of the country’s largest regional economies with its major drivers being growth sectors such as financial services, energy, technology, telecommunications and life sciences,” he said.
RGT management will continue to hold a “meaningful ownership stake” in the business and Mark Griege, the firm’s CEO says joining CI enables the team to build on its 35-year legacy by leveraging the Canadian firm’s experience and resources.
“With the continued strength and deep experience of our firm, we are also excited to play a role in CI’s vision of building a leading, client-centric national wealth management firm in the U.S. marketplace, which allows us to continue to attract new clients, top-tier talent and grow our ownership group,” added Griege.
Fast growth
CI’s growth in the US market has been swift with the RGT deal bringing its direct US wealth management acquisitions to 10 since the start of 2020; and 13 when including those made by CI-affiliated RIAs.
However, it has also continued to expand in Canada, taking a majority stake in full-service investment advisory Aligned Capital last month.
The firm’s total wealth management assets across North America is projected to be around C$90 billion and total assets of approximately $268 billion.
Building its US wealth management platform is a strategic move to expand its platform and includes the roll-out of its CI Private Wealth brand, recently introduced in Canada to focus on high-net-worth and ultra-high-net-worth clients. This will be expanded across the US in the months ahead.
