CI Financial Plans US$133B IPO of U.S. Wealth Management Business


CI Financial Corp. plans to spin off its US wealth management unit after an expansion fueled by dozens of acquisitions.

The company will sell up to 20% of the business through an initial public offering and file a prospectus with the U.S. Securities and Exchange Commission later this year, according to a statement on Thursday. Toronto-based CI said it would use the proceeds to pay the debt.

“We’re doing this for strategic considerations,” general manager Kurt MacAlpine said in an interview.

CI sought to capitalize on the growing demand for financial advice by buying smaller competitors. The American wealth management firm, which opened an office in Miami last year as its base of operations, has made more than 30 acquisitions since entering the market in 2020. It has rapidly increased its assets, which will total approximately $133 billion once all of these transactions are completed. , according to the press release.

While the company plans to remain an active buyer, it expects the pace of transactions to slow, MacAlpine said. Last year was particularly active “as many business owners were looking to complete transactions ahead of the ongoing tax changes,” he said.

CI plans to continue growing its wealth management business organically and through mergers and acquisitions, the CEO said.

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