CI Financial Corp - CEO, Kurt MacAlpine
CEO, Kurt MacAlpine
Source: CI Financial
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  • Wealth management company, CI Financial Corp (TSX:CIX) is acquiring a substantial interest in Cabana Asset Management, an Arkansas-based registered investment advisor
  • Once the deal finalises, CI will become the largest shareholder in Cabana Asset Management, though the exact terms of the deal remain undisclosed
  • Registered investment advising is one of the fastest growing segments of the wealth management industry and provides investment advice to high-income individuals
  • CI Financial hopes to develop a robust registered investment advisory business based in the US and has announced two similar deals with registered investment advisors this year. 
  • Before the market opens, CI Financial Corp (CIX) is trading at C$14.18 per share, with a market cap of $3.15 billion

Wealth manager, CI Financial Corp (TSX:CIX) is acquiring a substantial interest in Cabana Asset Management, an Arkansas-based registered investment advisor.

Once the deal finalises, CI will become the largest shareholder in Cabana Asset Management, though the exact terms of the deal remain undisclosed

Registered investment advising, is one of the fastest growing segments of the wealth management industry, and provides investment advice to high-income individuals.

Cabana’s signature Targeted Drawdown Portfolio is designed to minimise risk to its investors, while still benefiting from favourable swings in the market.

Impressively, Targeted Drawdown Portfolio have managed to post positive net flows every month this year and remain positive during every week during the recent global instability.

Kurt MacAlpine, CEO of CI Financial, found Cabana’s Target Drawdown Series particularly compelling.

“The Target Drawdown Series – both recently and over the longer term – has generated strong demand and helped to fuel Cabana’s rapid growth.

“Given current market conditions and the ongoing need for effective retirement solutions, there is a tremendous and timely opportunity to offer the Target Drawdown Series to a wider audience in both the U.S. and Canada,” he said.

This is the third deal with a US-based registered investment advisor this year. The company has plans to attain majority stakes in Surevest Wealth Management and One Capital Management, based in Phoenix and California, respectively.

CI Financial hopes, through deals like these, to develop a robust registered investment advisory business based in the US.

Once the new deal with the Cabana finalises, CI’s budding US-based venture will have approximately C$4.84 billion in assets under management.

Before the market opens, CI Financial Corp (CIX) is trading at $14.18 per share, with a market cap of $3.15 billion.

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