CIX to Acquire Former Eaton Vance Investment Counsel Div CI Financial to Acquire Former Eaton Vance Investment Counsel Division, Expanding U.S. Wealth Management Strategy
Acquisition will bolster CI’s Boston presence and boost CI’s U.S. assets to US$133 billion
MIAMI & TORONTO & BOSTON, March 31, 2022--(BUSINESS WIRE)--CI Financial Corp. ("CI") (TSX: CIX; NYSE: CIXX) today announced an agreement under which CI will acquire certain assets of Eaton Vance WaterOak Advisors, formerly Eaton Vance Investment Counsel ("EVIC") of Boston.
Prior to its acquisition by Morgan Stanley in 2021, EVIC served as the dedicated wealth management affiliate of Eaton Vance Corp. The firm, which traces its history to 1924, provides comprehensive wealth management services – including investment management, financial, estate and tax planning, and family office and trust services – to help its clients maintain financial security over the long term. As of February 28, 2022, the Boston-based EVIC team acted as advisor for US$11.4 billion in assets on behalf of families, endowments, foundations and other institutions.
"With nearly a century of success, Eaton Vance Investment Counsel has earned its reputation as one of the country’s leading registered investment advisors and we are proud to welcome them to CI Private Wealth," said Kurt MacAlpine, CI Chief Executive Officer. "This is one of our largest U.S. acquisitions by assets to date and aligns us with a growing firm with a rich history, an exceptional team, industry-leading wealth management capabilities and loyal, sophisticated clients."
"We’re excited about joining CI Private Wealth and what this partnership means for our clients, our employees and our firm as we solidify the long-term future of our business," said David McCabe, Co-President of EVIC. "CI was an ideal choice for our firm and our clients, given the company’s long experience in asset management and wealth management and its dedication to building the leading U.S. wealth management business focused on the ultra-high-net-worth and high-net-worth client segments. CI will be an exceptional partner, bringing extensive resources, which will ensure that we continue to serve our clients at the highest level for generations to come."
Since entering the U.S. RIA sector in January 2020, CI has become one of the country’s fastest-growing wealth management platforms. The completion of this and other outstanding transactions are expected to increase CI’s U.S. assets to approximately US$133 billion (C$168 billion), with CI’s total assets globally reaching approximately US$311 billion (C$394 billion).
The EVIC transaction is expected to close in the fourth quarter of 2022, subject to regulatory approvals and other customary closing conditions. The Asset & Wealth Management Investment Banking Group of Raymond James & Associates, Inc. served as exclusive financial advisor to CI, and Hogan Lovells US LLP served as CI's legal counsel. Financial terms were not disclosed.
Financial amounts are as at February 28, 2022.