CI Financial plans IPO of US$133B U.S. wealth business

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

The firm will sell as much as 20 per cent of the business through an initial public offering and will file a prospectus with the US Securities and Exchange Commission later this year, according to a statement Thursday. Toronto-based CI said it will use the proceeds to pay debt. The shares gained as much as 3.5 per cent.

“We’re doing this for strategic considerations,” Chief Executive Officer Kurt MacAlpine said in an interview.

CI has sought to capitalize on surging demand for financial advice by buying smaller competitors. The US wealth business, which opened a Miami office last year as a base of operations, made more than 30 acquisitions since entering the market in 2020. It rapidly ramped up assets, which will total about US$133 billion after all of those deals are completed , according to the statement.

While the firm plans to remain an active buyer, it expects the pace of deals to slow, MacAlpine said. Last year was particularly active “as many business owners were looking to transact in advance of pending 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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