Canada’s CI Financial has reported a 65% year-over-year increase in its total assets for the third quarter of this year, amid accelerated M&A activities, especially in the US.
In the quarter that ended on 30 September 2021, the firm’s total assets jumped to a new record of C$320.4bn ($254.64bn). The figure was C$194.4bn in the prior year period.
CI CEO Kurt MacAlpine said: “It was another record financial quarter for CI and included a new all-time high for asset levels and the best net flows in our asset management business in over six years – reflecting the successful ongoing transformation of our company.
“CI is C$126bn larger, much more diversified by business line, geography, and product category and more competitive than it was just one year ago.”
Canadian wealth management assets were C$76.8bn at the end of Q3 2021, versus C$51.1 in the year-ago period. US wealth management assets increased to C$96.9bn from C$14.9bn on a year-over-year basis.
CI’s total wealth management assets were C$173.8bn at the end of Q3 2021.
CI also posted record-high adjusted earnings per share (EPS) of C$0.80 for the third quarter of the year. Adjusted net income was C$159.2m, up from C$133.3m recorded in Q3 2020.
Net income attributable to shareholders was C$43.8m, down 66% from the same period last year.
CI’s total revenues climbed 29.79% to C$661.3m in Q3 2021 from C$509.5m registered a year ago.
Accelerating M&A activities in the US
During Q3 2021, CI finalised acquisitions of US-based registered investment advisors (RIAs) Radnor Financial Advisors and Portola Partners Group.
The firm also acquired $4.4bn wealth management firm Budros, Ruhlin & Roe in addition to signing a number of acquisition agreements.
As part of its strategy to support its evolving US business, CI is set to establish its US headquarters in Miami.
MacAlpine commented: “In US wealth management, we are seeing many of the country’s largest and most successful registered investment advisors choosing to join CI, attracted by the exceptional businesses we have in place and our vision for a national platform.
“These include firms dedicated to serving high-net-worth and ultra-high-net-worth individuals and families across the US. Including all recently announced transactions, our US wealth business will exceed US$98bn, up from zero at the start of 2020.”