Toronto-based mega-buyer CI Financial announced the acquisition of Dowling & Yahnke, a $5.1 billion wealth and investment firm in San Diego.
Including sub-acquisitions, this marks CI’s 18th deal since entering the U.S. wealth management space in early 2020.
The transaction is expected to increase CI’s total U.S. assets to $63 billion, and to $230 billion, globally.
“D&Y is our second-largest RIA acquisition to date and will be the sixth RIA in our group to have over $4 billion in assets,” said Kurt MacAlpine, CI’s chief executive officer. “Our vision and value proposition continue to resonate with advisers, and we’re honored that the country’s leading RIAs are choosing to partner with CI.”
Daniel Seivert, chief executive of Echelon Partners, expects the deals coming out of CI Financial to continue to get larger.
“Once a serious acquirer gets over $50 billion, it is likely best to do deals of $5 billion or more,” he said. “There are only so many of these firms and at any given time only a few are for sale. With over 30 larger acquirers there is meaningful competition for these larger deals.”
Seivert added that, “Dowling Yahnke is a great firm in a great market, giving CI additional strength in both California and San Diego.”
Founded in 1991, D&Y serves more than 1,300 clients and non-profit organizations.
Co-founder Dale Yahnke described the sale as a “strategic partnership” that “allows D&Y to reach new heights.”
“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,” Yahnke added. “Being part of CI ensures enhanced support and services for our clients, continued growth for our firm, and new opportunities for our employees.”
The most aggressive RIA buyer since the start of 2020, CI Financial shows no signs of slowing the pace of deals. Part of the growth strategy involved listing its shares on the New York Stock Exchange in November to help with the financing of deals.
CI Financial, one of Canada’s largest independent wealth management companies, also trades on the Toronto Stock Exchange.
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