CI Financial Closes on Investment in Cabana

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CI Financial Corp. of Toronto (TSX: CIX) announced Friday that it has completed its previously announced acquisition of interests in two investment advisor firms: Congress Wealth Management LLC of Boston and The Cabana Group LLC of Fayetteville.

The transactions have added a total of $5 billion in assets to CI’s wealth management business. Cabana accounts for $1.1 billion of that.

CI Financial now holds interests in four U.S.-based registered investment advisors with total assets of $8.1 billion. 

“We have made rapid progress in building our U.S. wealth management business, becoming one of the fastest-growing RIA platforms in the U.S. since we entered the market a few months ago,” CI Financial CEO Kurt MacAlpine said in a news release. “Our unique value proposition for RIAs is resonating in the market and I expect us to continue to realize strong growth going forward.

“Our wealth strategy is driven by our belief that the financial advisor is more important than ever as our clients’ financial lives become increasingly complex,” he continued. “RIAs constitute the fastest-growing segment of U.S. wealth management and these firms are an excellent complement to our Canadian wealth platform. Not only is there potential for synergies in investment and wealth planning services, but we are now able to offer true cross-border services to our Canadian clients.”

Cabana, which offers a comprehensive suite of investment management and wealth planning services, was ranked the fastest-growing RIA in the U.S. in 2018 by Financial Advisor magazine. The magazine ranked it again in 2019, as the second fastest-growing RIA.

Cabana is also the parent company of Cabana Asset Management, which offers a lineup of risk-managed portfolios called “The Target Drawdown Series” to its retail clients and on a sub-advisory basis to RIAs and advisors across the country.