CI targets U.S. registered investment advisorsBy The IJ Staff | November 27 2019 09:43AM
CI Financial Corp. has purchased a majority stake in Phoenix-based Surevest Wealth Management for an undisclosed amount as it moves to build a large presence in the U.S. registered investment advisor (RIA) market.
The company said the transaction supports two pillars of CI's three strategic priorities – expanding its wealth management platform and globalizing the firm. The third strategic priority, as announced on November 7, 2019, is to modernize its asset management business.
CI in strong position to buy U.S. firms
"The U.S. has the world's largest and most accessible wealth management market and RIAs are its fastest-growing segment," said Kurt MacAlpine, CI’s chief executive officer. "As a well-capitalized company with extensive experience in wealth management and a unique value proposition relative to other firms, CI is in a strong position to acquire leading RIAs and foster their continued expansion."
As part of this initiative, CI signed a letter of intent to acquire a second U.S.-based RIA firm and expects to announce the details of this transaction later this year.
Financial advisors provide value
"The role of financial advisors is more important today than ever before," said MacAlpine. "They continue to provide tremendous value to clients in an increasingly complex and challenging financial environment and it's that value which underlies the growth of RIAs.”
Surevest provides a wide range of fee-only financial planning and investment management services through offices in Phoenix and Los Angeles, specializing in servicing high-net-worth individuals.
CI's wealth management businesses, including Assante Wealth Management (Canada) Limited and CI Private Counsel LP, have C$48 billion in assets under advisement as of Oct. 31, 2019.