Prior to joining Claymore, Mr. Kelterborn was a lawyer with law firms in Toronto and Bermuda and served as Associate General CounselCorporate at Nortel Networks. He also oversaw the majority of the firms international businesses, which during his tenure included employees in Canada, Europe, Japan, Israel and Latin America and strategic partnerships in Asia and Australia and New Zealand. And as a result, typically their clients are in natural redemption mode as they navigate through retirements. Maybe you can just share with us, what the margins would be on that business. His responsibilities included strategic asset allocation, quantitative research and alternative indexing activities, as well as sitting on the executive and tactical asset allocation committees for its Strategy and Planning Department. And once again that was a speculation based upon the breakdown of the platform. CI Financial Corp.s CIX-T chief executive Kurt MacAlpine saw one of the largest jumps in total compensation, to $10.60-million, up more than 75 per cent from Newcom Media Inc. We use cookies to make your website experience better. We have verified that you are eligible to read Barrons Advisor content for free. As Were excited to continue expanding and enriching our U.S. network with high-quality RIAs like Radnor, said Kurt MacAlpine, CI Chief Executive Officer. Please go ahead. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. As Head of Investment Management, Mr. Lewis leads a team of more than 100 investment professionals at CI Global Asset Management and oversees the continued development of the firms integrated global investment platform. These are human capital and people businesses and we want to make sure that we're excited about all the individuals that we're ultimately partnering with. So historically, a lot of our flows and assets sit with legacy MFDA advisers that have been in the industry for an extended period of time. Please complete the form below and click on subscribe for daily newsletters from Wealth Professional. And I would say the other area that I have a lot of excitement for is our fixed income and the relationship that we've struck with DoubleLine and the very early success that we've experienced there on a go-forward basis. HEAD OFFICE. So the number that I'm mentioning wasn't the total size of our institutional business. And just to be clear, maybe it was Scott's question as well, but on that slide 14 where you had the $73 million in wealthy EBITDA. Thanks. Thank you, Kurt. Related to: Kurt Macalpine. And then the third part of our institutional business would be sub-advisory mandates, which is really broken into two pieces. Prior to joining Claymore, Mr. Kelterborn was a lawyer with law firms in Toronto and Bermuda and served as Associate General CounselCorporate at Nortel Networks. In terms of when we choose to pass and we absolutely pass on a lot of platforms that get presented to us we're really looking for high-quality well-run businesses, great profitability and dynamic management teams that collectively feel that they will benefit and we will all benefit from working together as opposed to working independently. So, the three transactions, plus Bowling which we announced earlier in the quarter, so it would be the combination of those four plus Aligned. As everyone knows M&A in and of itself is quite lumpy. The next question will come from Graham Ryding with TD Securities. So we had a working relationship. And how does that landscape look for you? Kurt MacAlpine has been on an eye-opening run of RIA deals -- $16 billion in managed assets-- in less than ten months, but some industry watchers say he's flying too high in an overvalued market. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. The next question will come from Gary Ho with Desjardins Capital Market. And I think that's really resonating. On one hand you'd see more call it financially oriented buyers that are essentially looking to take equity stakes in individual's businesses and then participating in the ongoing cash flows of those business. An error has occurred, please try again later. Prior to joining WisdomTree in July 2015, Mr. MacAlpine was a Partner at McKinsey, a global management consulting firm, based in its New York office. Yes. He also previously worked at PwC LLP, where he performed audit and business advisory services for multinational and mid-sized broker dealers. In his role as a Partner, he managed global consulting teams working with some of the largest asset and wealth managers in the world on topics related to strategy, distribution, marketing, international expansion, mergers and acquisitions, and product development. Kurt Macalpine, 62 Lives in Boston, MA. Please go ahead. After the speakers remarks, there will be a question-and-answer session. The company acquired 13 registered investment advisors in the US in 2020, along with Canadian advisor network Aligned Capital Partners. Yes. Just maybe one last one if I could. Just one follow-up. Two increasingly important categories where we are growing our market share. In the past 10 days, we have announced three new transactions: Stavis & Cohen, a U.S. $570 million women-owned Houston based RIA with a focus in financial planning and servicing corporate executives in the oil and gas industry; Doyle Wealth Management a U.S. $1.1 billion RIA based in the Tampa Bay Area a popular destination for Canadian retirees; and Roosevelt Investments a U.S. $2.7 billion RIA based in New York City our first acquisition in the world's largest financial market. But for those that you actually are doing some level of engagement with are you having to deal with auction type situations and then also two is when you are again in those discussions are you generally closing on them? Good morning. That is helpful. The velocity of deals that we're able to do is picking up. We don't break out the specific numbers. In his role as a Partner, he managed global consulting teams working with some of the largest asset and wealth managers in the world on topics related to strategy, distribution, marketing, international expansion, mergers and acquisitions, and product development. But the way, we had structured our investment platforms we were only able to deliver the scale at the individual boutique level. Okay. As the President and Chief Operating Officer of CI, the total compensation of Darie Urbanky at CI is CAD$1,225,000. It also excludes any strategic or cost synergies, asset management product sales, business model improvements or planned but unannounced transactions. If we were to do a wealth deal -- sorry an asset management deal, it would either be to acquire a capability we don't have or to expand the footprint to a market that we're not currently in. I know it sounds like a minor distinction, but that is very different from us, doing an acquisition and saying, we're going to buy your business. Is there an opportunity to continue to streamline your fund lineup? One would be capability expansions. This slide provides a snapshot of our new investment management organizations. They have a phenomenal focus on serving corporate executives in the oil and gas industry, which creates a very interesting energy corridor opportunity for us partnering with Assante. We are also taking this opportunity to better structure our investment platform to foster improved communication and collaboration across the organization, positioning us to deliver the full-scale and capabilities of CI to our clients not just the capabilities of our legacy investment boutiques. So think about the spectrum of competitors that exist. So when we look at opportunities there's two things that have to remain intact for us to be willing to do a deal. View Reputation Profile. But yes, the margins on the institutional business are lower than what we would see on retail. So while we have experienced a couple of lumpy quarters of redemptions, virtually all of those have come from bank and insurance-owned platforms that are moving those assets in-house, specifically to an in-house team doing essentially the same thing. So you're right, it's not a cost-cutting effort. You must click the activation link in order to complete your subscription. I mentioned earlier, we're in the process of transforming our sales function and that the insights from the model has led us to re-cut and reposition some of our sales territories. https://www.barrons.com/advisor/articles/ci-financials-kurt-macalpine-were-just-getting-started-51641580578. And that kind of leads me to the second question, which is I think on your financial statement you disclosed the purchase price of roughly $400 million for the U.S. RIA acquisition that's closed up to September. And that was really the next tranche of deals. It might be, it might not be. And then on top of that if you look at the marketplace, I'd say somewhere around $0.90 on the dollar ex-CI of money in the space right now is private equity or private equity related. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. Prior to that, he was a sell-side analyst covering asset and wealth managers at Piper Jaffray. And then just on the RIA acquisition pipeline like how would you describe the size of it today? Kurt has worked with some of the largest asset managers in the world and has a thorough understanding of the industry, best practices and new developments, David Miller, director and chairman of CIs governance, human resources and compensation committee, said in a statement. So any M&A that you would see us doing would be in one of those two areas aligned against the three strategic priorities that we had outlined. Why? I assume this is low margin. Thanks and good morning. So the approach would be different. We've detected you are on Internet Explorer. In this series of videos and articles, TD Wealth professionals share practical strategies that helped them build rewarding careers. This copy is for your personal, non-commercial use only. He was also a member of the CDPQ asset allocation committee. I don't like to give guidance on anything as I think oftentimes it's just guessing. It has informed our digital marketing campaigns, all of our e-mail campaigns that we're doing today are based off of insights that we're receiving from that model. So if the opportunity presents itself, it's financially attractive accretive and a great opportunity to diversify and transform the business we'll look. So I remain very optimistic. So it is a lever that, we could use, but we'll do it in a very disciplined manner when they do. So growing and building and improving the business is critically important to our strategy. I would say the vulnerabilities remain the vulnerabilities that we currently have. Trading is expected to begin next Tuesday the 17th, under the symbol CIXX. I will share more details on the investment platform changes in a few moments. We anticipate that the rebranding effort will be fully completed by Q1 2021. Mr. MacAlpine holds a Bachelor of Commerce degree from Saint Marys University and an MBA from Queens University. WebKurt MacAlpine Chief Executive Officer and Director, CI Financial. Mr. Lewis has over 20 years of global investing experience and has held senior leadership positions at several organizations, including two of the worlds largest institutional investors. Kurt Macalpine . I will now provide an update on the progress we've made on some of our strategic initiatives. The ability for any boutique to deliver scale benefits was driven by the scale they had generated independently. It's a smaller portion of the line, Scott. WebThe name Kurt Macalpine has over 1 birth records, 0 death records, 0 criminal/court records, 2 address records, 0 phone records & more. Sure. CI The next question will come from Tom MacKinnon with BMO Capital. Thank you for the question. CIs total assets have grown to $241 billion (at March 31, 2021) since he joined the company. in theoretical physics and a B.Sc. Please disable your ad-blocker and refresh. At WisdomTree, MacAlpine was responsible for all client-facing functions and oversaw most of its international businesses. At WisdomTree, a global asset manager and exchange-traded fund sponsor based in New York, Mr. MacAlpine was responsible for all client-facing functions globally, including distribution, marketing, data intelligence and strategy, business development and client solutions. Yeah. If you take Doyle Wealth Management, the greater Tampa Bay Area is one of the biggest hotbeds for Canadian retirees' period. All of our initiatives will support one or more of these strategic priorities. But it is something that we're monitoring. I mean, the biggest challenge was we would constantly get feedback from clients that, it's complex and challenging to do business with CI. This new approach allows us to deliver CI's full-scale to our clients, organize ourselves by investment capability, share information more freely throughout the organization, ideally leading to better problem-solving and investment outcomes, reduce complexity in our investment organization, creating a more client-friendly platform, create consistency in our objectives address gaps in our platform holistically and align the compensation model across teams. When I look at our institutional business overall what I'd say is there's probably, three different chunks of business. When it comes to alternatives, investors should capitalize with caution, Fraud losses in Canada hit new all-time high, Location matters when it comes to family business tax. I would say if you think about the journey we've been on the first few deals that we had started with or prioritized were firms that I had professional relationships with in prior lives. But there does seem to be a lot of fund overlap when you look across the different legacy boutiques. On the sales front, although the company continues to be in redemptions, we generated strong gross sales results, which increased 23% from a year ago and 8% sequentially. Hi. As we think about globalizing what I would say is, I'm not sure if we'll do something to globalize. Like what sort of, hit rate do you think you would be able to get looking out over the next year? So I feel fantastic about the progress we've made. He joined CI Financial in May 2021 from WisdomTree Investments, Inc., a publicly traded asset manager where he served as Executive Vice President and CFO since 2008. And on day one everything is -- everything that you do is what we do. Can you quantify how much of that comes from the line to get a sense on the U.S. RIA traction? Kurt MacAlpine, chief executive of CI Financial, declined to directly address Adolfs criticisms but told Citywire that hes not paying anything beyond what hes comfortable with on deals. After submitting your request, you will receive an activation email to the requested email address. We have no further questions at this time. Kurt MacAlpine, CI Financial May 17, 2021 CEO CI FINANCIAL Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through And I think we're off to a really great start in Liquid Alternatives. CI GAM has been climbing the ladder in terms of ETF assets and now has the fifth most in Canada with $11.7 billion. To read this article, please provide the information below so we can confirm that you work in the industry. Would those be. If I look at what you're doing in the U.S. with respect to RIAs I wonder if you could compare your business model to say competitors here and we certainly know there's one publicly listed competitor. Sure. We continue to scale our wealth management platforms in the U.S. having completed or announced 12 transactions for the year-to-date, representing nearly $22 billion of AUM. That business has been relatively flat for us over the past little while and we have the new head of institutional now that's working to grow it. I want to be clear that this is not a forecast. Please. Our investment professionals have full conviction that this new model will deliver better outcomes and a better experience for our clients. Bloomberg Markets Americas. He has extensive experience in the global asset and wealth management industry, having previously served as Executive Vice-President and Head of Global Distribution for WisdomTree Asset Management and as a Partner and Leader of the North American Asset Management Practice at McKinsey & Company. Thank you for the question. And I would call this a close second or 1A and it's a human capital business and the primary relationship in any wealth managers between the adviser team and the client in particular. We had another strong quarter as markets and our AUM continued to rebound. So we're doing things more digital. Copyright 1996-2023 KM Business Information Canada Ltd. If you experience any issues with this process, please contact us for further assistance. So I would say the focus so far has been wealth management clearly given the velocity of deals we've done in the RIA space. There will be over time, but that wasn't really the focus of the effort. And there could be opportunities for us to acquire specialized capabilities alternatives, as an example or something like that. Our marketing expense to date, we've essentially been self-funding this initiative within the existing marketing expense base. So they're taking some form of stake in the business and allowing the business to continue to operate on a freestanding independent basis. There's a scenario where all of it redeems and every scenario in between. Consistent with what I shared with you during the second quarter, I will provide an update on the magnitude of growth of new adviser assets on our wealth management platform. So through our strategic integrated collaborative approach we will naturally work our way to an integrated platform. As a reminder, here is a quick review of our three strategic priorities which are modernizing asset management, expanding wealth management and globalizing our company. Thank you. Prior to WisdomTree, Mr. Muni served as Chief Accounting Officer of International Securities Exchange Holdings, Inc (ISE), one of the worlds leading electronic options exchanges, where he lead ISEs successful public offering in 2005. So every month essentially, we capture all of the inputs from various levels of engagement and the model gets smarter and more detailed. But what do you bring to the table that they don't? And why would that be? We look forward to connecting next quarter. CI's SG&A in the third quarter was $108.8 million down from $109 million last quarter and $124.6 million in the third quarter last year. One of the I guess, call it more minor reasons based upon interest from RIAs is the ability to take stock as part of the transaction. In the third quarter U.S. AUM grew 10% to $4.7 billion on net sales of $300 million and market performance. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. And we have announced 12 deals in the marketplace than it was several months ago when we were starting to build story and build that momentum from scratch. And what we're trying to do Gary and Scott, just to clarify the reason this is important is, we're obviously transforming our business relatively quickly from all of our economic profits coming from asset management to more balance. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. And there is a few firms that fit this mold and may be called serial aggregators or something like that. The board is confident that his deep industry knowledge, proven leadership and experience in developing and executing growth-oriented strategic initiatives will ensure that CI remains a leader in a rapidly changing business environment, he added. To the extent that, we can use our stock accretively to do these types of transactions, it is something we would consider using as part of the purchase price which would reduce our free cash flow obligations. Once we started to do deals in this space we started to hit the radar of a lot of the banks that are working with these firms to help them transact. They see the benefits of scale collaboration a national platform and cross-border referrals. In October, we saw a 19% improvement in Canadian retail net sales and a 63% improvement in institutional net sales on a sequential basis. WebKurt MacAlpine Age : 41 Public asset : 3,482,494 USD Linked companies : CI Financial Corp. Summary Currently, Kurt MacAlpine occupies the position of Chief Executive But if you look at what we disclosed last quarter, what we've disclosed this quarter, Aligned was not in last quarter, they are in this quarter, as are a few other businesses. 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