CI Financial, one of Canada’s largest asset management and wealth management firms, will take a majority stake in the Westlake Village, Calif.-based registered investment advisor One Capital, which has $1.6 billion in client assets under management. It is CI’s second acquisition of a U.S.-based RIA in as many months.
The move furthers CI’s initiative to build a U.S. presence by acquiring wealth management firms. According to CEO Kurt MacAlpine, CI Financial is moving forward on a new strategic direction established in early November, focusing on the need to modernize asset management, expand its wealth management capabilities and establish a global presence.
“I firmly believe that the role of the financial advisor is more important today than ever before, given the changes in pension systems, combined with extended longevity and increasing complexity throughout retirement,” MacAlpine said. “CI Financial, through its existing businesses in Canada and its new businesses in the U.S., is well positioned to capitalize on this opportunity.”
CI Financial was founded in 1965 and went public in 1994, growing to have more than $36.7 billion in assets under advisement and about $136.7 billion in fee-based managed assets. Late last month, the firm announced it had acquired a 70% stake in Surevest, a Phoenix-based RIA. At the time, the firm also revealed it had already signed a letter of intent to acquire an additional RIA in the U.S., One Capital.
In addition to its U.S.-based RIA acquisitions, CI Financial has also established its affiliate business GI Global Investments, with offices in Boston and San Francisco, and the investment management firm has expanded throughout the globe, including to Hong Kong, New Zealand and Australia.
The terms of the deal between One Capital and CI were not disclosed, and it is expected to close within the first quarter of next year.