Congress Wealth Management (CWM), an RIA affiliated with Canada’s CI Financial, has acquired Columbia-based Pinnacle Advisory Group for an unknown sum.
The acquired company provides wealth management and family office services to HNW individuals, families, foundations, and endowments.
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Headquartered in Boston, the company has offices in Westport, Scottsdale, and Orange County.
The deal adds $2.4bn in assets to CWM and increases the size of its business by 70%.
Furthermore, Pinnacle’s offices in Columbia and Miami increase CWM’s business to $5.8bn and expands its reach to new markets on the East Coast and in South Florida.
The transaction, which closed on 30 April 2021, was financially backed by CI, which holds a strategic interest in CWM.
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By GlobalDataCWM president Paul Lonergan referred to Pinnacle as an ideal addition to the firm.
Commenting on the deal, Lonergan added: “We are also fortunate to have CI Financial as a strategic partner. Given the size and complexity of the transaction, we could not have executed this without their ongoing support.”
The addition of Pinnacle bolsters CWM’s financial planning, trust planning, and tax expertise. The combination with CWM allows Pinnacle to offer a broader range of investment products and strategies to its customers.
Pinnacle CEO and founding partner John Hill said: “We believe there are tremendous complementary advantages by combining our firm with Congress Wealth.
“We were extremely impressed with Congress’s year-over-year growth rate, and their ability to execute a comprehensive expansion strategy.”
CI CEO Kurt MacAlpine said that CWM and Pinnacle exemplify the high quality of the firms within CI’s network and the benefits of partnership.
MacAlpine further said: “Paul and his team have been an exceptional addition to our group and have more than doubled Congress Wealth’s assets since we made our investment last year. The addition of Pinnacle is the latest step in the firm’s continued growth and development.”
CI, which forayed into the US wealth management market in early 2020, acquired a strategic stake in CWM in last May.
The move was part of CI’s planned expansion the US in line with its strategic ambition of globalising the firm and bolstering its wealth management platform.
The Pinnacle transaction and other recently completed acquisitions will increase CI’s US assets to approximately $58bn, while its total combined AUM and wealth management assets will reach $225bn.
Last month, CI agreed to acquire full ownership of the alternative fixed-income investment firm Lawrence Park Asset Management, in which it held a minority stake.
