CI Financial acquires USD2.6bn Radnor Financial Advisors

CI Financial Corp (CI) is to acquire Radnor Financial Advisors (Radnor), a wealth and investment management firm serving primarily high-net-worth families in the Greater Philadelphia region.

Radnor brings approximately USD2.6 billion to CI’s fast-growing US registered investment advisor (RIA) platform, which now has a national presence with offices across the country. This and one other recently announced transaction are expected to increase CI’s US assets to approximately USD68 billion.

“Radnor Financial Advisors is an exemplary RIA that is well recognised for its best-in-class client service and team,” says Kurt MacAlpine, CI Chief Executive Officer. “For over 30 years, Radnor has delivered a suite of services that encapsulate wealth and investment management. We look forward to helping them expand their services and continue to deliver for their incredible client base.”

From its founding in 1989, Radnor has primarily catered to high-net-worth individuals and families and established a niche in serving senior corporate executives. Because of the firm’s client base, it has developed a specialty in executive compensation and financial planning. Additionally, Radnor has built a team that includes a comprehensive accounting and income tax division, and fiduciary income tax-return preparation services.

“Advanced capabilities in tax advice and preparation are extremely valuable for high-net-worth clients and Radnor’s expertise in this area will be a great addition to our platform,” says MacAlpine.

“We are excited to join the growing CI network of like-minded firms to continue Radnor’s growth, with a clear focus on providing superior client service, maintaining a fiduciary responsibility and expanding professional opportunities for our staff,” says Michael Mattise, Managing Partner, President and Chief Investment Officer of Radnor.

“As a firm with a close-knit, family-like atmosphere and an eye toward multigenerational service and stability, we feel that partnering with CI builds on our over 30-year history and will provide a strong path forward for our clients, team and business partners. We look forward to leveraging the resources, infrastructure and deep expertise that will come from being part of the CI family while continuing to offer the exceptional client experience that we have become known for.”

Emigrant Partners, LLC/Fiduciary Network (Emigrant Partners), supported the transaction and is selling its minority interest in Radnor to CI.

“We continue to deepen our working relationship with CI Financial, which has become a dominant player as a majority acquirer,” says Karl Heckenberg, Chief Executive Officer of Emigrant Partners. “CI and Emigrant have complementary business models and it’s exciting to see the types of opportunities we can create for RIAs looking to achieve specific objectives. We’ve enjoyed an incredible relationship with the Radnor team and we believe their next 30 years will be even more successful than the last 30.”

The acquisition marks CI’s 19th in the US (including acquisitions by CI-affiliated RIAs) since January 2020, making it one of the country’s fastest-growing wealth management platforms. Following the completion of all outstanding transactions, CI’s total assets are expected to reach USD247 billion (CAD298 billion).

All asset amounts are as at 31 May, 2021.

This transaction is expected to close in the third quarter of 2021, subject to regulatory approval and other customary closing conditions. Radnor was advised by Alston & Bird LLP and CI was advised by Hogan Lovells US LLP. Financial terms of this transaction were not disclosed.