Canadian wealth manager CI Financial has agreed to take a majority interest in Dallas, Texas-based RIA RGT Wealth Advisors.
The deal consideration consists of an undisclosed cash payment and CI shares.
A $4.7bn RIA, RGT offers financial planning services to affluent individuals and family office services across the US.
The takeover of RGT marks CI’s largest wealth management deal in the US, its 10th direct acquisition in the US wealth management space this year and 13th in total including takeovers by CI-affiliated RIAs.
CI expects the latest deal, together with other previously announced transactions, to bring its total US wealth assets to around $21bn.
CI CEO Kurt MacAlpine said: “RGT is one of the leading RIA firms in the US and we are excited and honoured that they will be joining CI Financial.
“RGT also provides CI with a leading presence in the important and fast-growing Texas market, one of the country’s largest regional economies with its major drivers being growth sectors such as financial services, energy, technology, telecommunications and life sciences.”
The deal awaits regulatory nod, with completion anticipated in the final quarter of this year.
RGT CEO Mark Griege added: “CI will be an exceptional partner, bringing extensive experience and resources which will allow us to enhance our investment options, family office services and technology – ensuring that RGT continues to serve our clients at the highest level for generations to come. Importantly, we will maintain a meaningful ownership stake in our business and continue to build on our 35-year entrepreneurial legacy.”
CI and the US wealth management industry
CI’s expansion to the US wealth management arena is part of its strategy to globalise the firm and bolster its wealth management platform.
The firm expects to grow its North American wealth management assets to around $68bn and total assets to around $164 bn through its US RIA transactions announced till date.
These include the deals to purchase Stavis & Cohen Financial, Bowling Portfolio Management, and Balasa Dinverno Foltz (BDF), among others.
Additionally, CI plans to expand the CI Private Wealth brand, which was recently launched in Canada to represent its HNW and UHNW advisory businesses, to the US.