CI Financial Corp., the aggressive Toronto-based acquirer of American RIA firms, today announced an agreement to buy certain assets of Eaton Vance WaterOak Advisors, an $11.4 billion Boston firm owned by Morgan Stanley/, that formerly did business as Eaton Vance Investment Counsel (EVIC).
The EVIC transaction is expected to close in the fourth quarter of 2022, subject to regulatory approvals and other customary closing conditions, according to a news release. Financial terms were not disclosed.
Eaton Vance, which was acquired by Morgan Stanley in 2021, was the dedicated wealth management affiliate of Eaton Vance Corp. Since 1924, the firm has been providing comprehensive wealth management services, including investment management, financial, estate and tax planning, and family office and trust services, the release said.
“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,” David McCabe, co-president of EVIC, said in a statement. “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.”
CI CEO Kurt MacAlpine said, “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.” He added: “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.”
As for Morgan Stanley, the transaction signaled another move to rationalize its recent acquisitions and unload RIA-related assets that came with those deals. In 2020, it bought E*Trade and subsequently kept the discount broker's retail trading business while discarding its RIA custodial operation.
With headquarters in Toronto and Miami, CI entered the U.S. RIA sector in January 2020 and has become one of the country’s fastest-growing wealth management platforms. The completion of this and other outstanding transactions are expected to increase its U.S. assets to about $133 billion and $168 billion in Canada.