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CI Financial to acquire majority interest in Stavis & Cohen of Houston, its second acquisition of a leading woman-owned wealth firm and 10th RIA acquisition of 2020

·6 min read

Specialization in serving energy industry executives presents cross-border growth opportunity

CI Financial Corp. ("CI") (TSX: CIX) and Stavis & Cohen Financial LLC ("SCF") today announced an agreement under which CI will acquire a majority interest in the Houston-based registered investment advisor firm with approximately US$570 million in assets.

The transaction will increase CI’s U.S. assets to approximately US$13 billion and its total North American wealth assets to approximately US$59 billion or C$78 billion, based on assets as at September 30, 2020.

SCF is a leading Houston-based woman-owned wealth management firm led by co-founders Deborah Stavis, Chief Executive Officer, and Eddie Cohen, Chief Investment Officer. The team helps high-net-worth families reach their lifetime and multi-generational goals by providing individualized guidance and support in all aspects of wealth planning.

"CI is the ideal partner for our clients, our employees and our business as we move to the next phase of our development," said Ms. Stavis. "CI understands and shares our mission of helping families navigate the complexities of accumulating, preserving and distributing assets to achieve their goals through an in-depth planning approach. Their deep experience in both asset and wealth management complements our services, enhances the value we offer our clients, and supports our growth."

"Deborah has been a financial planning pioneer in Houston and she and Eddie and their team have built an exceptional business with deep ties in the community," said Kurt MacAlpine, CI Chief Executive Officer. "We look forward to working with Stavis & Cohen to grow their business in Houston, a dynamic and attractive market for us. Their specialization in serving corporate executives in the oil and gas sector presents strategic synergies with our Western Canadian wealth management business, allowing us to seamlessly serve industry clients both north and south of the border."

Since entering the U.S. registered investment advisor ("RIA") market in the first quarter, including SCF, CI has acquired or agreed to acquire seven RIAs directly and 10 overall (including transactions by CI’s affiliates), continuing CI’s record as one of the industry’s fastest-growing RIA platforms. Once all outstanding transactions close, CI will hold interests in RIAs with combined assets of approximately US$13 billion and offices in California, Arizona, Texas, Arkansas, Illinois, Ohio and Massachusetts. As part of its strategy, CI will be introducing the CI Private Wealth brand in Canada and the United States to represent its high-net-worth and ultra-high-net-worth advisory businesses.

SCF’s service offerings include retirement planning, investment management, risk management, estate planning and business succession, as well as specializations in serving energy industry executives, business owners and financially independent women. Together, Ms. Stavis and Mr. Cohen have over 75 years of industry experience, including 24 years leading wealth management firms. They have both taught investment, retirement and estate planning at the Rice University Susanne M. Glasscock School of Continuing Studies since 1984, exemplifying SCF’s commitment to using education to support and empower clients.

The SCF transaction, which is subject to customary closing conditions, including regulatory approval, is expected to close prior to year-end. Terms were not disclosed. Park Sutton Advisors LLC served as exclusive financial advisor to SCF in this transaction.

CI’s U.S. expansion supports its strategic priorities of expanding its wealth management platform and globalizing the firm. CI’s most recently announced acquisition, which is also expected to close prior to year-end (subject to customary closing conditions, including regulatory approval), was an agreement to acquire Bowling Portfolio Management LLC of Cincinnati, Ohio, a Women's Business Enterprise National Council-certified woman-owned business led by Kathy Wayner, President, Chief Executive Officer and Managing Partner.

CI also holds interests in:

  • Balasa Dinverno Foltz LLC of Itasca, Illinois

  • The Cabana Group, LLC of Fayetteville, Arkansas

  • Congress Wealth Management, LLC of Boston, Massachusetts

  • One Capital Management, LLC of Westlake Village, California

  • Surevest, LLC of Phoenix, Arizona.

CI is a leader in the Canadian wealth management market, where its businesses include Assante Wealth Management, CI Private Counsel LP and Aligned Capital Partners Inc. ("Aligned Capital"). CI completed the acquisition of Aligned Capital on October 19, 2020, boosting its Canadian wealth assets to approximately $61 billion. Following the close of all pending transactions, CI’s North American wealth management business will have approximately $78 billion in assets, an all-time high. This represents a growth rate of 62% over September 30, 2019. The transactions have increased CI’s total asset and wealth management assets to a record $206 billion. (Totals based on asset levels as of September 30, 2020.)

About CI Financial

CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI’s primary asset management businesses are CI Investments Inc. and GSFM Pty Ltd., and it operates in wealth management through Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, Aligned Capital Partners Inc., CI Direct Investing (WealthBar Financial Services Inc.), CI Investment Services Inc., Balasa Dinverno Foltz LLC, The Cabana Group, LLC, Congress Wealth Management, One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.

All financial amounts in Canadian dollars unless otherwise specified.

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201103005723/en/

Contacts

CI Financial – Canada
Murray Oxby
Vice-President, Communications
416-681-3254
moxby@ci.com

United States
Trevor Davis, Gregory FCA for CI Financial
610-415-5931
cifinancial@gregoryfca.com