CI continues it scorching pace of M&A deals in the North American wealth management space, initiated in 2020.

Canada-based CI Financial is investing in Columbia Pacific of Seattle, buying the firm’s wealth management arm with $6.4 billion of assets under management. The move continues CI’s buying spree that has produced a raft of deals since the start of 2020.

CPWM serves high net worth and ultra-HNW clients on the West Coast and the rest of the US. Additionally, CI will acquire a minority stake in Columbia Pacific Advisors, an alternative asset management firm that manages $3.5 billion in total assets under management across a broad selection of institutional-caliber real estate private equity, direct lending, opportunistic and hedged strategies, CI said in a statement yesterday.

As part of the transaction, CPWM owners will become equity partners in CI Private Wealth, the private partnership that holds CI’s broader US wealth management business.

Berkshire Global Advisors served as exclusive financial advisor to CPWM and CPA, and Stradley Ronon Stevens & Young, acted as legal advisor. CI’s legal advisor was Hogan Lovells US. The transactions are expected to close later this month, subject to regulatory and other customary closing conditions. The financial terms were not disclosed.

CPWM is led by managing partners Alex Washburn and Peder Schmitz, president Derek Crump, and Tyler Gaspard. The company was founded by Washburn, Schmitz, Stan Baty, and Dan Baty.

CPA, founded in 2006, has participated in over $10 billion in transactions since its inception.

Following the completion of the Columbia Pacific transactions, the leadership teams at CPWM and CPA will remain in place, CI Financial said. 

Rising AuM
When these and other outstanding transactions are completed, CI’s US wealth management assets are expected to be approximately $115 billion. As a result, US wealth management will become CI’s largest business line by assets, exceeding core asset management and Canadian wealth management. CI’s total assets globally are expected to reach approximately $293 billion.

CI said that its Columbia Pacific transaction will deepen its presence in the Pacific Northwest and on the West Coast, following CI’s October agreement to invest in McCutchen Group, a Seattle-based registered investment advisor focused on UHNW clients.