Corient just locked down its first big RIA deal of 2024 in Maine, perhaps critical to its CI Financial parent nailing down a suitcase of cash from Abu Dhabi

It took H.M. Payson & Co. (HMP) 170 years to grow into a $7.9-billion AUM RIA in Maine, but a flick of the pen to make it part of a deal to reboot a Miami rollup, owned by a Canadian firm that needed a boost from Abu Dhabi to fulfill its mission.

Corient, an RIA rollup with $184 billion of managed assets, announced acquiring the 32-employee Portland wealth manager on Wednesday (Dec 20) after a year of tepid deal-making.

Notable was not only the sheer size of the deal – more than doubling Corient's take for the year – but also that it followed by 23 days the sale of its parent, CI Financial. 

The buyer, Mubadala Capital, manages a portion of Abu Dhabi's sovereign wealth fund. It took the company private, cashed out Bain Capital, and provided a much-needed capital infusion – not least to plump Corient's M&A budget.

Corient CEO and Partner Kurt MacAlpine says the Payson deal checked key boxes for quantity and quality.

“HMP’s position as Maine’s largest RIA and its legacy of exceptional service make it a natural fit for Corient," he said. 

Never stop

Daniel Lay, president and managing director at HMP, said joining Corient means “we can immediately offer more to our clients.

"We were impressed by Corient’s private partnership, which fosters collaboration and ensures that resources and expertise from across the firm will be available to serve our clients.”

Mubadala was also likely encouraged by its acquisition target doing deals even as its own deal percolated, one big M&A player told RIABiz in a not-for-attribution comment.

“Never stop doing deals,” the source said. “The closing may get delayed, but you keep going.”

“It buys down the multiple for Mubadala, which is great for them,” the M&A source added. “The acquired business – Payson --was bought for a lower multiple than what Mubadala valued Corient.”

Creating value

The wealth manager is executing on Abu Dhabi's "Economic Vision 2030" plan to reduce its dependence on volatile oil revenue. It names technology, finance, and renewable energy as key tenets.

HMP is looking to keep pace with the needs of increasingly affluent and sophisticated investors in Maine, where the economy is diversifying at a rapid pace beyond fisheries and forests.

Though the HMP price was not disclosed, many RIAs in 2024 have sold for multiples in the high single digits, sources say.

Mubadala Capital's $3.4 billion CI Financial acquisition was valued at 10.8 times the company's expected EBITDA in 2025, according to sources in a Toronto Globe & Mail article.

“Once it's acquired, all EBITDA is valued at the higher platform multiple, so it creates equity value for the shareholders of Corient, thus, making the cost of Corient look cheaper,” the source says. 

On the clock

Corient is wise to keep buying big RIAs, but it may not reflect CI's bigger deal simmering in the background, says Mike Wunderli, managing director at ECHELON Partners.

“I don’t think it’s a sign of how things are going either way,” he says. "Rather, this is exactly what you’d expect following the Bain deal. 

"Whether or not things are going well, once a PE firm makes an investment like this, they’re going to get moving quickly. They are on the clock with their investors and are expected to make moves to spur growth.

“Judging whether the HMP deal in particular is a good one … depends,” he adds.

“On paper, the HMP deal looks like a good land for Corient, with respect to its size, scope, and client market segment,” he says.

“The key to whether or not it’s a ‘good’ deal for Corient depends on how much they paid, how much debt they used (and its impact on their overall capital structure), and how well they are able to integrate HMP and maximize value.”