CI Financial announces strategic investment in Congress Wealth Management of Boston

TORONTO (May 26, 2020) – CI Financial Corp. (“CI”) (TSX: CIX) and Congress Wealth Management, LLC (“Congress”) announced an agreement today under which CI will acquire a strategic interest in Congress, a Boston-based registered investment advisor firm with US$2.3 billion in assets under administration.

Congress provides wealth management and family office services to high-net-worth individuals, families, foundations, and endowments, with an emphasis on comprehensive and customized client plans. The firm was named to the Financial Times 300 Top Registered Investment Advisors (RIAs) list of 2019, the third time in four years it has received the award.

The agreement represents the further development of a collaborative partnership between CI and Congress. In February 2020, CI helped finance Congress’s purchase of Domus Capital Group, LLC, of Avila Beach, California. CI is also currently backing Congress as it works to finalize another acquisition in the near future that will bring Congress’s assets to over US$3 billion.

“We’re thrilled that CI shares our vision for growth,” said Paul Lonergan, President of Congress. “By joining with a firm with a similar philosophy and client-centered approach to wealth management, we can build scale while we enhance the spectrum of services and solutions we offer. CI’s financial strength and expertise in asset and wealth management are already accelerating our expansion.”

“Congress is a highly successful firm with experienced leadership, a commitment to continued growth, dedication to client success, and a presence in some of the most attractive markets in the U.S. – making it an excellent partner for CI as we build our U.S. wealth management business,” said Kurt MacAlpine, CI Chief Executive Officer. “I am excited to work with Paul and his team as we collectively grow our RIA business.”

This transaction, which is expected to close early in the third quarter of 2020, solves succession planning for Congress employees and shareholders. Terms were not disclosed.

The partnership with Congress is the latest step in CI’s initiative to build a growing U.S. wealth management business through the acquisition of select RIAs. This initiative supports two of CI’s three strategic priorities – globalizing the company and expanding its wealth management platform. CI’s other strategic priority is to modernize its asset management business.

“The RIA sector is the fastest-growing segment in U.S. wealth management and Congress’s location in Boston, a center for the technology, health, finance and education industries, holds additional growth potential,” said Mr. MacAlpine. “This investment also allows us to provide our Canadian clients with cross-border wealth services, another benefit of our RIA strategy.”

To date, CI has acquired majority interests in Surevest, LLC, of Phoenix and One Capital Management, LLC, of Westlake Village, California, and reached an agreement to make a strategic investment in The Cabana Group, LLC, of Fayetteville, Arkansas. The four RIAs will have a total of US$6.6 billion in assets.

“CI has now become the most active acquirer in the U.S. RIA space in both the number of acquisitions and their dollar value,” Mr. MacAlpine said. “CI’s value proposition of providing permanent capital and commitment to a business model based on comprehensive wealth planning resonates with RIA business owners. We expect this momentum to continue and to accelerate as our platform continues to grow and our brand awareness in the U.S. becomes mainstream.”

CI’s Canadian wealth management businesses, which include Assante Wealth Management (Canada) Limited and CI Private Counsel LP, had approximately C$47.5 billion in assets under administration as of April 30, 2020.

About CI Financial

CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI held approximately C$166 billion in fee-earning assets as of April 30, 2020. 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, WealthBar Financial Services Inc., BBS Securities Inc., One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.

The Financial Times 300 Top Registered Investment Advisers is an independent listing produced annually by the Financial Times. The FT 300 is based on data gathered from RIA firms, regulatory disclosures, and the FT’s research. The listing reflected each practice’s performance in six primary areas: assets under management, asset growth, compliance record, years in existence, credentials and online accessibility. This award does not evaluate the quality of services provided to clients and is not indicative of the practice’s future performance. Neither the RIA firms nor their employees pay a fee to The Financial Times in exchange for inclusion in the FT 300. This rating by the Financial Times is not indicative of our future performance and may not be representative of any one client’s experience.

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.

For further information:

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