Canadian company bolsters status among fastest-growing RIA platforms in U.S. with announcement of fifth acquisition
CI Financial (CI) has announced its completed acquisition of Balasa Dinverno Foltz LLC (BDF), an Itasca, Illinois-based private wealth firm with US$4.5 billion in assets as of August 31.
With the addition of BDF, CI has increased its U.S. wealth-management assets to an estimated US$11 billion as of August 31 and established a crucial foothold in the Chicago region.
The deal, first announced on August 4, is CI’s fifth direct acquisition of an RIA this year, and the eighth overall when counting acquisitions by affiliated RIAs. Aside from being CI’s largest RIA acquisition to date, the deal with BDF cements CI’s status among the industry’s fastest-growing RIA platforms, with its first RIA acquisition announced just in the first quarter.
“BDF is a thriving, high-quality firm and we're excited to welcome the team to CI,” said CI CEO Kurt MacAlpine in a statement. “Adding a firm of BDF's size and excellence significantly accelerates our U.S. wealth strategy.”
In an interview with Bloomberg, MacAlpine said the company is pursuing a globalization strategy that includes widening both its business mix and investor base. It’s currently focusing on the U.S. by consolidating firms that cater to affluent clients by providing investment management services and advice. In the long run, CI wants to boost profits from its wealth management segment to at least $200 million.
“There’s this massive arbitrage opportunity, essentially buying smaller RIAs and putting them together versus buying large firms,” MacAlpine told Bloomberg. “The deal dynamics in Canada are very different. The market’s very concentrated, it’s very mature, and there’s not that many deals that come to market.”
In the statement confirming the BDF acquisition, MacAlpine said CI will be introducing the CI Private Wealth brand in the U.S. and Canada to distinguish the unique value proposition of its high-net-worth and ultra-high-net worth advisory businesses.
Chad Carlson, who previously held positions as wealth manager and director of Research at BDF, has been appointed as the firm’s president and Co-Chief Investment Officer. The BDF team, comprising 62 people, provides customized wealth-management services to individuals and families, business owners and institutions, and non-profit organizations.
Founded in 2001, BDF’s expertise includes practice groups focused on specialized client niches such as women, widows, business owners, lawyers, and divorcing individuals, among others.
“CI is pursuing a compelling strategy of building a national wealth management company and we're thrilled to play a key role,” Carlson said. “We share a client-centered, comprehensive approach to wealth management that helps our clients live full lives.”
