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Alternative Market Briefing

CI announces plan to sell part of its US wealth business via IPO

Friday, April 08, 2022

Laxman Pai, Opalesque Asia:

CI Financial, the Canadian-based asset management firm which has been aggressively buying up registered investment advisors in the United States, plans to take its $133 billion U.S. wealth management business public.

The integrated global wealth and asset management company said in a press release that it plans to sell up to 20% of its U.S. business via an initial public offering that will be a U.S.-listed subsidiary of the publicly traded parent firm.

CI Financial will remain the majority shareholder of the unit after the offering and plans to use the proceeds to pay down debt. It intends to submit paperwork for the IPO with the U.S. securities regulator later this year.

"Since entering the U.S. wealth sector in early 2020, CI has become the country's fastest-growing wealth platform and the U.S. wealth management business has grown to become CI's largest business unit by assets," said the release.

"The growth in our U.S. wealth management business is incredible; however, in our opinion, the value we have created isn't reflected in our share price today," said Kurt MacAlpine, CI Chief Executive Officer. "After a thorough evaluation of our strategic options, we are confident that a U.S.-listed subsidiary IPO is the best route to shareholder value creation. The U.S. wealth management business now has sufficient scale to stand alone as a public company, creating an attractive, long-term destination for clients and advisors. We believe ......................

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