CI Financial acquires $3.4-billion Ohio-based RIA

CI Financial Corp. has acquired Columbus, Ohio-based Budros, Ruhlin & Roe, Inc., a registered investment advisor (RIA) firm with US$3.4 billion in assets, the firm announced Tuesday.

The acquisition expands CI’s presence in the U.S. Midwest, where it already has RIA firms based in Chicago and Cincinnati, the firm said. CI’s U.S. wealth management business will consist of 16 RIAs, with offices across the U.S. and assets of approximately US$74 billion, or $91 billion, once outstanding transactions are completed.

Budros, Ruhlin & Roe, established in 1979, provides fee-only investment management and financial planning services, primarily for high-net-worth clients and foundations. The firm also offers retirement plan management for 401(k) plans and pension plans.

“Budros, Ruhlin & Roe is the leading private wealth firm in its region with a multi-decade track record of success,” said Kurt MacAlpine, CI CEO, in a release. “They share our client-centered approach and emphasis on comprehensive wealth planning.”

Said Dan Roe, co-CEO of Budros, Ruhlin & Roe: “While this is an acquisition, we also see it as an exciting merger with like-minded friends in the industry who share our fiduciary approach and high standards. We look forward to developing CI Private Wealth in the U.S. and helping this best-in-class operation benefit clients and employees alike.”

This transaction is expected to close in the fourth quarter of 2021, subject to regulatory approval and other customary closing conditions.

Also on Tuesday, CI Financial announced its earnings for the second quarter, ended June 30.

Net income attributable to shareholders was $117.6 million for the quarter, down from $120.2 million from the same quarter last year, and from $124.2 million in the previous quarter.

Quarterly adjusted earnings per share were $0.75 for the quarter, up from $0.57 from the same quarter last year, and from $0.73 in the previous quarter.

Revenue was $662.4 million for the quarter, up from $475.6 million from the same quarter last year, and from $640.4 in the previous quarter.

The firm added $50 billion in wealth assets in the second quarter through the acquisition of five U.S. RIAs, and made two deals since, including the purchase of Budros, Ruhlin & Roe.

“We have scaled up our U.S. wealth management business in a short time, and it’s making increasingly meaningful contributions to CI’s revenues and earnings,” said MacAlpine in the earnings release.

In asset management, the firm posted overall net flows of $356 million, representing its first net positive quarter since since the third quarter of 2017.

“We believe this is a direct result of the many changes we have made over the last 18 months to modernize that business,” MacAlpine said.

Rudy Mezzetta

Rudy is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on tax, estate planning, industry news and more since 2005. Reach him at rudy@newcom.ca.