Toronto-based aggregator CI Financial announced the acquisition of a $5 billion RIA Tuesday, along with record fourth-quarter financial results.
The $305 billion financial conglomerate, which has acquired more than $120 billion worth of U.S. wealth management assets since entering the market two years ago, is buying Newport Beach, California-based Corient Capital Partners.
Founded in 2015, Corient combines a holistic advisory model with an alternative investments platform that will join CI Private Wealth, CI Financial’s U.S. business.
“We are excited to join CI Private Wealth and partner with what are, without question, some of the highest-quality firms in our industry,” Corient partner Darren Henderson said in a prepared statement.
“The CI Private Wealth partnership model supports the continued enhancement of the services we offer our clients, while as partners, we will participate fully in the development of a new, national private wealth firm,” Henderson added.
The deal, which is expected to close by the end of June, also serves as a liquidity event for Merchant Investment Management, which has had a minority ownership stake in Corient since 2020. Tim Bello, Merchant managing partner, confirmed that the Corient sale marks the first time in Merchant’s five-year history that the private investor has sold an investment from its $110 billion portfolio.
CI Financial's fourth-quarter earnings report describes 2021 as “the most successful year in the history of CI in terms of financial performance and asset gathering,” Chief Executive Kurt MacAlpine said in a statement.
CI’s $302 billion in total assets represents a 66% increase over the same period last year, with much of the growth attributable to acquisitions of registered investment advisers through the U.S. operation, CI Private Wealth.
The Dec. 31 quarter ended with CI’s U.S. operations representing $119 billion of its assets, making it the company’s largest business unit.
During the quarter, CI completed the acquisitions of eight RIAs with combined assets of approximately $34 billion.
Insiders say the Wall Street giant is looking to let clients count certain crypto holdings as collateral or, in some cases, assets in their overall net worth.
The two wealth tech firms are bolstering their leadership as they take differing paths towards growth and improved advisor services.
“We think this happened because of Anderson’s age and that he was possibly leaving,” said the advisor’s attorney.
The newly appointed leader will be responsible for overseeing fiduciary governance, regulatory compliance, and risk management at Cetera's trust services company.
Certain foreign banking agreements could force borrowers to absorb Section 899's potential impact, putting some lending relationships at risk.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
From direct lending to asset-based finance to commercial real estate debt.
