CI Financial, a leading buyer of wealth management firms, said Thursday that during the second quarter, it closed the previously announced acquisitions of two U.S. registered investment advisers: Corient Capital Partners of Newport Beach, California, which has $5 billion in client assets and a focus on ultra-high-net-worth clients, and Galapagos Partners of Houston, a multifamily office with $868 million in client assets.
That's a slowdown from the breakneck pace at which CI Financial had been buying RIAs and wealth management firms in the past.
Kurt MacAlpine, CEO of CI Financial, the Canadian wealth management firm, told investors in May that 2022 was shaping up to be a slower year for RIA acquisitions and that the rate of the firm's acquisitions last year was unusual.
Meanwhile, in its second-quarter earnings report released Thursday, CI Financial reiterated its intention to sell up to 20% of its U.S. wealth management business via a U.S. initial public offering. CI Financial first made its intentions for a U.S. wealth management IPO public in April.
The company intends to file the registration for the IPO with the Securities and Exchange Commission during the fourth quarter, MacAlpine said Thursday morning during a conference call with analysts to discuss second-quarter earnings.
The company said that it intends to use the net proceeds from the IPO to pay down debt, and that a final decision on the IPO size, conditions and timing is pending and will be subject to market conditions.
At the end of June, CI Financial reported $112.6 billion of U.S. wealth management assets, an increase of 71% when compared to the end of June 2021, when it reported $65.8 billion.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
