CI Financial Corp (CIXX) to Acquire Dowling & Yahnke

CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX) and Dowling & Yahnke, LLC (“D&Y”) today announced an agreement under which CI will acquire the San Diego-based registered investment advisor firm with US$5.1 billion in assets.

D&Y, which does business as Dowling & Yahnke Wealth Advisors, was founded in 1991 and serves over 1,300 clients, primarily individuals, families, and non-profit organizations. D&Y provides comprehensive investment management and financial planning services tailored to clients’ individual life and legacy goals. The firm’s accolades include being named to the FT 300 Top Registered Investment Advisors list every year since the list’s inception in 2014. Additionally, Chief Executive Officer Dale Yahnke was ranked No. 23 on the Barron’s 2020 list of Top 100 Independent Financial Advisors, the 14th time he has made the list, and was named to the Barron’s Advisor Hall of Fame in 2019.

“Dowling & Yahnke is one of the top RIAs in the U.S. and we’re thrilled to welcome the team to CI,” said Kurt MacAlpine, CI Chief Executive Officer. “Dale Yahnke and his team have built an exceptional business distinguished by their dedication to clients, deep expertise in holistic wealth planning, and an enduring reputation for excellence.”

The transaction is expected to increase CI’s total U.S. assets to US$63 billion (C$79 billion), continuing the company’s rapid growth in wealth management. CI entered the U.S. registered investment advisor (“RIA”) sector in January 2020 with the goal of building the nation’s leading private wealth firm. The company has since become the fastest-growing RIA platform in the U.S. through an ambitious series of acquisitions.

“D&Y is our second-largest RIA acquisition to date and will be the sixth RIA in our group to have over C$5 billion in assets,” Mr. MacAlpine said. “Our vision and value proposition continue to resonate with advisors, and we’re honored that the country’s leading RIAs are choosing to partner with CI.”

“Our firm was founded 30 years ago on the idea of placing the best interests of our clients above all else,” said Mr. Yahnke. “A strategic partnership with CI at this time allows D&Y to reach new heights in delivering a further elevated level of professional service for those that would trust us with the responsibility of overseeing their complete financial picture.

“We are impressed by CI’s depth of experience in wealth management as well as the caliber of the firms they are assembling to create a premier, national wealth management organization. Being part of CI ensures enhanced support and services for our clients, continued growth for our firm, and new opportunities for our employees. We look forward to working with CI and its other partner firms in this exciting new stage of development for the collective team.”

D&Y will be CI’s first San Diego location and its addition is expected to more than double CI’s assets in the key southern California market. This transaction represents CI’s 18th RIA acquisition (including acquisitions by CI-affiliated RIAs) and is expected to increase CI’s total assets under management and wealth management assets globally to approximately US$230 billion (C$289 billion).

CI’s U.S expansion reflects its strategic priorities of globalizing the firm and expanding its wealth management platform. As part of this, CI will be extending the CI Private Wealth brand to its operations in the United States.

The D&Y transaction is expected to close later this quarter, subject to regulatory, stock exchange, and other customary closing conditions. Financial terms were not disclosed.

D&Y was advised by the Asset & Wealth Management Investment Banking team of Raymond James Financial, Inc. and Alston & Bird LLP. Hogan Lovells US LLP was legal advisor to CI.

All asset amounts are as at March 31, 2021.

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