Citi and Insigneo closed the transaction under which the Miami-based independent broker-dealer and Registered Investment Advisor (RIA) acquired Puerto Rico-based broker-dealer Citi International Financial Services, LLC (CIFS) and Citi Asesores de Inversion Uruguay S.A. (Citi Asesores), an investment advisory firm in the country’s free-trade zone.
The transaction has received regulatory approval.
With the acquisition of CIFS and Citi Asesores, Insigneo will now exceed $17B in client assets and serve over 400 investment professionals. The acquired entities will continue to operate independently under the Insigneo brand.
“We’re prepared for a seamless transition of the businesses we are acquiring, and we welcome all incoming employees, investment professionals and their clients, to Insigneo’s growing independent platform,” added Raul Henriquez, Insigneo’s Chairman and CEO
Citi maintains all existing bank deposit relationships with wealth clients moving to Insigneo, which offers a broad spectrum of investment products and wealth management capabilities, according the firm information.
“Citi will continue to serve institutional clients through its Puerto Rico and Uruguay branches, as it has done so for the past 104 and 107 years; respectively. The U.S. Consumer Wealth team and the bank remain deeply committed to Latin America, where Citi has operated for more than a century and built an unmatched network across 20 countries. Citi’s U.S. Consumer Wealth business will continue to serve clients using the Citigroup Global Markets Inc. broker dealer”, the press release says.
“The closing of the deal allows Citi to simplify its U.S. Consumer Wealth Management business model, focused on providing leading wealth management solutions through Citi Global Markets Inc. broker-dealer and investment advisor, while strengthening our banking relationships with our existing clients in Uruguay, Puerto Rico, and throughout Latin America. In addition, it provides us an opportunity to expand banking services over time with Insigneo’s growing client base,” said Scott Schroeder, head of U.S. International Personal Bank at Citi.
The transaction is the latest in a series of ongoing strategic moves and acquisitions as Insigneo continues to execute on its business model, which received a boost with the recent $100M financing commitment by global investment firms Bain Capital Credit and J.C. Flowers & Co.