Toronto-based wealth manager CI Financial has agreed to buy a stake in Fayetteville, Arkansas RIA Cabana Asset Management that is a unit of The Cabana Group.
The deal makes CI the largest shareholder in Fayetteville-based Cabana, which manages over $1.1bn in assets.
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It offers CI’s US RIA business more than $3.4bn in total assets.
The deal is slated to complete later this quarter. The value of the transaction was not divulged.
The move forms part of CI’s strategy to expand its reach in the US RIA space that is said to be the “fastest-growing segment in North American wealth management”.
Cabana’s service suite includes wealth management, portfolio construction, retirement plan, tax and estate planning, and insurance, among others.
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By GlobalDataThe firm has branches in Arkansas, Texas and Colorado.
Cabana delivers risk-managed portfolios to retail clients and on a subadvisory basis to US advisers and RIAs.
The firm’s Target Drawdown Portfolios are designed to curb losses within a predetermined drawdown parameter. The portfolios have been currently launched only in the US.
CI CEO Kurt MacAlpine said: “The Target Drawdown Series – both recently and over the longer term – has generated strong demand and helped to fuel Cabana’s rapid growth.
“Given current market conditions and the ongoing need for effective retirement solutions, there is a tremendous and timely opportunity to offer the Target Drawdown Series to a wider audience in both the U.S. and Canada.”
In 2019, CI Financial bolstered its presence in the US RIA market by picking majority stakes in Surevest Wealth Management and One Capital Management.
