CI Financial Announces Sale of its Minority Stake in Congress Wealth Management
April 27 2023 - 1:01PM
Business Wire
CI shareholders receive return of
approximately three times initial investment
CI Financial Corp. (“CI”) (TSX: CIX) announced today it has
reached an agreement to sell its minority stake in Congress Wealth
Management, LLC (“Congress”) to Audax Private Equity.
Congress, led by President Paul Lonergan, serves clients across
the U.S. from its Boston headquarters and offices in six other
cities. CI, which first invested in Congress in the third quarter
of 2020, holds its stake in the firm through CI Private Wealth, LLC
(“CIPW”), its integrated U.S. wealth management subsidiary.
“Congress is a great firm and our partnership with Paul and his
team has been fantastic,” said Kurt MacAlpine, CI Chief Executive
Officer.
“However, CI’s investment in Congress was made almost three
years ago, prior to the establishment of the CI Private Wealth
differentiated private partnership model. To fully benefit from its
features, only active contributors to the business can be CIPW
Partners. Unfortunately, the ownership structure at Congress
precludes it from fully integrating into CIPW. CI and Congress
believe that minority ownership is not the best structure to
maximize the client and employee experience, and that Audax will be
an excellent partner to support the next chapter of growth for
Congress.”
CI received a return of approximately three times its initial
investment in Congress and will use the proceeds from the
transaction to pay down debt.
“The investment from CI was extremely productive and we are
exiting on the best of terms,” said Mr. Lonergan. “In addition to
finding a solution that works for our ownership, we are also eager
to pursue additional M&A opportunities thanks to the backing
from Audax Group.”
“I want to thank Paul and the entire team at Congress for their
hard work and dedication over the last three years,” said Mr.
MacAlpine. “They are an incredibly talented team and I wish them
all the best.”
The transaction is expected to close in May 2023.
About CI Financial
CI Financial Corp. is a diversified global asset and wealth
management company operating primarily in Canada, the United States
and Australia. Founded in 1965, CI has developed world-class
portfolio management talent, extensive capabilities in all aspects
of wealth planning, and a comprehensive product suite. CI manages
and advises on approximately C$391.1 billion (US$289.4 billion) in
client assets (as at March 31, 2023).
CI operates in three segments:
- Asset Management, which includes CI Global Asset Management,
which operates in Canada, and GSFM Pty Ltd., which operates in
Australia.
- Canadian Wealth Management, which includes the operations of CI
Assante Wealth Management, Aligned Capital Partners, CI Private
Wealth (Canada), Northwood Family Office, CI Direct Investing and
CI Investment Services.
- U.S. Wealth Management, which includes CI Private Wealth
(U.S.), an integrated wealth management firm providing
comprehensive solutions to ultra-high-net-worth and high-net-worth
clients across the United States.
CI is headquartered in Toronto and listed on the Toronto Stock
Exchange (TSX: CIX). To learn more, visit CI’s website or LinkedIn
page.
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI Financial Corp.
(“CI”) and its products and services, including its business
operations, strategy and financial performance and condition.
Forward-looking statements are typically identified by words such
as “believe”, “expect”, “foresee”, “forecast”, “anticipate”,
“intend”, “estimate”, “goal”, “plan” and “project” and similar
references to future periods, or conditional verbs such as “will”,
“may”, “should”, “could” or “would”. These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which by their nature are inherently
uncertain and beyond management’s control. Although management
believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, such statements
involve risks and uncertainties. The foregoing list is not
exhaustive and the reader is cautioned to consider these and other
factors carefully and not to place undue reliance on
forward-looking statements. Other than as specifically required by
applicable law, CI undertakes no obligation to update or alter any
forward-looking statement after the date on which it is made,
whether to reflect new information, future events or otherwise.
CI Global Asset Management is a registered business name of CI
Investments Inc., a wholly owned subsidiary of CI Financial
Corp.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230427005833/en/
Investor Relations Jason Weyeneth, CFA Vice-President,
Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com
Media Relations Canada Murray Oxby Vice-President, Corporate
Communications 416-681-3254 moxby@ci.com United States Jimmy Moock
Managing Partner, StreetCred 610-304-4570 jimmy@streetcredpr.com
ci@streetcredpr.com
CompX (AMEX:CIX)
Historical Stock Chart
From Mar 2024 to Apr 2024
CompX (AMEX:CIX)
Historical Stock Chart
From Apr 2023 to Apr 2024