Acquisition continues ambitious
cross-border growth initiative and will boost CI’s total assets to
C$261 billion
CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX), a diversified
global asset and wealth management company, and Segall Bryant &
Hamill, LLC (“SBH”) today announced an agreement under which CI
will acquire SBH, a leading high-net-worth-focused registered
investment advisor and multi-office institutional investment
management firm headquartered in Chicago.
The addition of SBH, once completed, is expected to double CI’s
total U.S.-based assets to US$46.1 billion1 and demonstrates the
firm's commitment to continued cross-border growth and unwavering
belief in the importance of financial advice, planning and
investment management.
SBH is both a registered investment advisor (“RIA”) and an
institutional asset manager. On a stand-alone basis, SBH’s US$6.0
billion2 wealth management platform is CI’s largest U.S.
acquisition to date by asset size. CI is also excited to build on
the strong momentum of SBH’s institutional platform, which offers a
broad array of both traditional and alternative investment
strategies.
“Acquiring Segall Bryant & Hamill is a major step forward as
we continue our U.S. expansion,” said Kurt MacAlpine, CI Chief
Executive Officer. “SBH has built an incredible business and formed
a committed team that embodies the characteristics we look for in
our acquisitions. SBH has also displayed a proven ability to adapt
to changing market dynamics to deliver a consistently superior
level of client service and investment performance through deep
fundamental research. I am pleased to announce that the SBH team
will remain intact and be a key driver of CI’s growth in the
U.S.”
With US$23.1 billion2,3 in assets on its platform and 122
employees, SBH serves a broad array of wealth management,
intermediary and institutional clients from offices in Chicago,
Denver, Philadelphia, St. Louis and Naples, Florida. Since its
founding in 1994, SBH has specialized in providing strong
risk-adjusted returns across multiple asset classes to deliver
clients customized portfolio solutions and an exceptional client
experience.
“The interests of our clients have been at the center of every
strategic decision we have made since the firm’s founding over 25
years ago,” said Philip Hildebrandt, Chief Executive Officer of
SBH. “Our clients will benefit from the synergies that result when
like-minded organizations leverage their talents and resources to
enhance the client experience. CI is a strong strategic partner for
SBH, providing the capital resources of a large, global investment
firm while allowing us to retain our client-centric approach. We
are excited to become part of the growing CI family of
companies.”
With this acquisition, CI has established a significant presence
in U.S. wealth management, both in asset size and geographic reach.
It marks CI’s 14th U.S. acquisition (including acquisitions by
CI-affiliated RIAs) since January 2020. Following the completion of
the SBH transaction, CI’s total North American wealth management
assets are expected to be approximately US$82 billion (C$104
billion) and total assets are expected to reach approximately
US$205 billion (C$261 billion).1
Cambridge International Partners served as the exclusive
financial advisor to SBH. This transaction is expected to close in
the second quarter of 2021, subject to regulatory, stock exchange
and other customary closing conditions. Financial terms of this
transaction were not disclosed.
About Segall Bryant & Hamill
Segall Bryant & Hamill, LLC is an independent investment
firm headquartered in Chicago, with offices in Denver,
Philadelphia, St. Louis, and Naples, Florida. The firm was
established in 1994 and had over US$23 billion3 in assets under
management/assets under advisement as at December 31, 2020. SBH
offers a range of investment strategies and customized solutions
for institutional, advisor and wealth management clients, including
domestic, international and global equity, fixed income and
alternatives.
About CI Financial
CI Financial Corp. is an independent company offering global
asset management and wealth management advisory services. CI
managed and advised on approximately C$231 billion (US$182 billion)
in client assets as at December 31, 2020. CI’s primary asset
management businesses are CI Global Asset Management (CI
Investments Inc.) and GSFM Pty Ltd., and it operates in Canadian
wealth management through Assante Wealth Management (Canada) Ltd.,
CI Private Counsel LP, Aligned Capital Partners Inc., CI Direct
Investing (WealthBar Financial Services Inc.), and CI Investment
Services Inc.
CI’s U.S. wealth management businesses consist of Balasa
Dinverno Foltz LLC, Bowling Portfolio Management LLC, The Cabana
Group, LLC, Congress Wealth Management, LLC, Doyle Wealth
Management, LLC, One Capital Management, LLC, The Roosevelt
Investment Group, LLC, RGT Wealth Advisors, LLC, Stavis & Cohen
Private Wealth, LLC and Surevest LLC.
CI is listed on the Toronto Stock Exchange under CIX and on the
New York Stock Exchange under CIXX.
1 Based on reported assets for SBH and CI as at December 31,
2020.
2 As at December 31, 2020.
3 Model UMA assets of approximately US$209 million are included
in the AUA portion of the AUM/AUA total.
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI Financial Corp.
(“CI”) and its products and services, including its business
operations, strategy and financial performance and condition.
Forward-looking statements are typically identified by words such
as “believe”, “expect”, “foresee”, “forecast”, “anticipate”,
“intend”, “estimate”, “goal”, “plan” and “project” and similar
references to future periods, or conditional verbs such as “will”,
“may”, “should”, “could” or “would”. These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which by their nature are inherently
uncertain and beyond management’s control. Although management
believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, such statements
involve risks and uncertainties. The material factors and
assumptions applied in reaching the conclusions contained in these
forward-looking statements include that the acquisition of SBH will
be completed and its asset levels will remain stable, the
investment fund industry will remain stable and that interest rates
will remain relatively stable. Factors that could cause actual
results to differ materially from expectations include, among other
things, general economic and market conditions, including interest
and foreign exchange rates, global financial markets, changes in
government regulations or in tax laws, industry competition,
technological developments and other factors described or discussed
in CI’s disclosure materials filed with applicable securities
regulatory authorities from time to time. The foregoing list is not
exhaustive and the reader is cautioned to consider these and other
factors carefully and not to place undue reliance on
forward-looking statements. Other than as specifically required by
applicable law, CI undertakes no obligation to update or alter any
forward-looking statement after the date on which it is made,
whether to reflect new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210125005665/en/
Investor Relations Jason Weyeneth, CFA
Vice-President, Investor Relations & Strategy 416-681-8779
jweyeneth@ci.com
Media Relations United States Trevor-Davis, Gregory FCA
for CI Financial 610-415-1145 cifinancial@gregoryfca.com
Canada Murray Oxby Vice-President, Corporate
Communications 416-681-3254 moxby@ci.com
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