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April 8, 2022

CI Financial reveals plan to take $133bn US wealth business public

CI Financial has revealed plans to sell up to 20% of its $133bn US wealth management business through an initial public offering (IPO) in the country.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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The Canadian asset manager, which expanded its wealth business to the US in 2020, has been aggressively expanding its footprint via M&A deals.

CI Private Wealth, the US wealth management division of the firm, will have approximately $133bn assets, once all outstanding acquisitions are completed.

CI plans to file a prospectus with the US Securities and Exchange Commission (SEC) later this year for the IPO.

Details about IPO size, conditions and timing are yet to be finalised, the firm said in a statement.

The firm, which will retain the majority interest in the business, said it will leverage the net proceeds from the stock market debt to pay down debt.

Speaking about the development, CI CEO Kurt MacAlpine said that the US wealth unit ‘now has sufficient scale to stand alone as a public company’.

He added: “After a thorough evaluation of our strategic options, we are confident that a US-listed subsidiary IPO is the best route to shareholder value creation.

“We believe this is the best path to realising our vision of becoming the leading ultra-high-net-worth and high-net-worth business in the US.”

CI follows a private partnership model, under which the owners and employees of the registered investment advisers (RIA) are given equity in the broader CI Private Wealth business in the US.

In 2021, the firm added 15 RIAs to the division.

This month CI signed a deal to buy some assets of Eaton Vance WaterOak Advisors from Morgan Stanley.

The firm is planning to continue its acquisition streak and further expand its business, according to a Bloomberg News report citing MacAlpine.

According to MacAlpine, the pace of the deals may slow down compared to last year, when several business owners were seeking to transact ahead of pending tax changes.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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