Toronto-based CI Financial, one of the fastest growing RIA platforms in the U.S., today announced an agreement to acquire Budros, Ruhlin & Roe, a Columbus, Ohio- based wealth management firm with $3.4 billion in assets.
The transaction, which is expected to close in the fourth quarter subject to regulatory approval, is expected to increase the Canadian global asset and wealth management company’s total U.S. assets to $74 billion, a news release said. Financial terms were not disclosed.
CI also announced record earnings of $662.4 million for the second quarter and total assets of $304 billion, which is up 69% increase from a year ago. The company added five U.S. firms with a total of $50 billion in the second quarter, boosting its U.S. assets to $83.8 billion.
“We have scaled up our U.S. wealth management business in a short time, and it’s making increasingly meaningful contributions to CI’s revenues and earnings," CI CEO Kurt MacAlpine said in a statement.
Budros, Ruhlin & Roe, which was established in 1979, provides investment management and financial planning services, primarily for high-net-worth clientele and foundations, the release said, adding that it also offers retirement plan management for 401(k) and pension plans. The firm has more than 800 clients, much of whom it attributes to a strong referral network.
In 2011, the firm was the recipient of the Schwab IMPACT Best-in-Business Award, which recognize a firm in part for its track record of growth and excellence and use of technological solutions to help expand market reach.
MacAlpine said Budros, Ruhlin & Roe is the leading private wealth firm in its region and shares CI’s client-centered approach and emphasis on comprehensive wealth planning. “Their highly accomplished team will play a valued role in building CI Private Wealth into a national leader,” he said.
“While this is an acquisition, we also see it as an exciting merger with like-minded friends in the industry who share our fiduciary approach and high standards,” said Dan Roe, co-CEO of Budros, Ruhlin & Roe. “We look forward to developing CI Private Wealth in the U.S. and helping this best-in-class operation benefit clients and employees alike.”
John Schuman, co-CEO, said they chose CI “because it is in complete alignment with our firm’s constitution, providing our clients with the very best wealth management services, helping employees grow in their jobs and continuously striving to improve what we do and how we do it. ... It’s exciting to help define the future of an industry-leading wealth management platform in the U.S.”
This latest acquisition is CI’s 16th since entering the U.S. market in January 2020. The firm also continues to grow globally. Its net sales of $530 million in Canadian retail and overall net sales of $356 million represents the first positive quarter since the third quarter of 2017 and the strongest in six years, MacAlpine noted.
“Our global wealth management platform continues to generate strong organic growth with net inflows of $4 billion during the first half of 2021, highlighting our strong momentum and the high quality of the franchises we have acquired,” he said.