The Toronto firm will boost its US assets to US$115bn with acquisition of Columbia Pacific Wealth Management and Columbia Pacific Advisors
CI Financial is expanding its US reach with a strategic deal that takes its total US assets to US$115 billion.
The Toronto-based firm will acquire Columbia Pacific Wealth Management (CPWM) of Seattle, which has US$6.4 billion in total AUM and serves high-net-worth and ultra-high-net-worth clients, some institutions, and provides a comprehensive range of wealth management services.
Last month, Kurt MacAlpine, CI’s CEO told Wealth Professional that a series of acquisitions were just the start of its ambitions, including becoming “the leading HNW and UHNW wealth manager in the US.”
As part of the deal, the owners of CPWM will become equity partners in CI Private Wealth, the private partnership that holds CI’s US wealth management business.
“The decision by CPWM partners to take individual ownership stakes in CI Private Wealth not only shows their dedication to the continued success of their current clients, but their dedication to the growth and development of the broader partnership,” commented MacAlpine.
CI will also acquire a minority stake in Columbia Pacific Advisors, an alternative asset management firm that manages US$3.5 billion in total assets under management across a broad selection of institutional-caliber real estate private equity, direct lending, opportunistic and hedged strategies.
Read the top 10 wealth management firms in the world, ranked by Assets Under Management (AUM).
Cultural fit
MacAlpine says Columbia Pacific’s culture and vision for growth makes it a good fit for his fast-growing firm.
“Columbia Pacific has built remarkable wealth management and alternative asset management businesses centred on delivering the best possible outcomes for their clients and investors,” he said. “Their success has been driven by highly skilled and committed leadership teams with extensive experience in financial services and other businesses.”
For Columbia Pacific, which has offices in Seattle and San Francisco, CI’s investment will enable it to broaden the services it offers to its clients.
“CI has earned a reputation for investing in best-in-class teams, and we are thrilled to partner with them as they make a permanent investment in our companies,” said Alex Washburn, co-founder and managing partner of CPWM and CPA. “On behalf of our executive teams, I would like to thank our colleagues at CPWM and CPA for their drive, commitment and continuing focus on delivering outstanding service and performance to our clients and investors. We are just getting started!”
Largest business line
Once this and other deals are completed, US wealth management will become CI’s largest business line by assets, exceeding core asset management and Canadian wealth management. CI’s total assets globally are expected to reach approximately US$293 billion (C$375 billion).
