Home News CI Financial to Buy Majority Stake in $4.7 Billion RIA

CI Financial to Buy Majority Stake in $4.7 Billion RIA

CI Financial Corp. (TSX: CIX; NYSE: CIXX), a dual-listed investment and wealth management company based in Canada, has agreed to purchase a majority interest in RGT Wealth Advisors LLC.

CI Financial Corp. (TSX: CIX; NYSE: CIXX), a dual-listed investment and wealth management company based in Canada, has agreed to purchase a majority interest in RGT Wealth Advisors LLC, a Dallas-based registered investment advisor with approximately $4.7 billion in wealth assets. Consideration will consist of cash and CI Financial shares.

The news follows CI Financial’s recent acquisition of Bowling Portfolio Management LLC, a Cincinnati-based registered investment advisor with $450 million in assets under management. The company began trading on the New York Stock Exchange last week.

CI Financial entered the U.S. wealth management industry earlier this year and has become one of the industry’s fastest-growing RIA platforms. The latest agreement represents its 10th direct U.S. wealth management acquisition this year and is expected to increase its total U.S. wealth assets to approximately $21 billion.

Founded in 1985, RGT Wealth Advisors’ practice specializations include wealth management and planning for corporate executives, business owners, multi-generational families, and current and retired professional athletes. The firm and its advisors have received numerous accolades, including being recognized by Barron’s magazine as one of America’s best RIA firms in 2019 and 2020.

“RGT is one of the leading RIA firms in the U.S. and we are excited and honored that they will be joining CI Financial,” said Kurt MacAlpine, CI Financial’s chief executive officer. “RGT, our largest U.S. acquisition by assets to date, is a growing firm with an exceptional team, strong leadership and well-developed expertise attuned to the needs of their clients.”

The transaction is expected to close in the fourth quarter of 2020, and financial terms were not disclosed.

Upon completion of all previously announced RIA transactions, including RGT, CI’s total U.S. wealth assets are expected to reach approximately $21 billion, boosting its total North American wealth management assets to approximately $68 billion and total assets to approximately $164 billion. CI Financial held total assets of $152 billion as of October 31, 2020.

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