Bain and Abu Dhabi to Invest in CI Financial’s US Wealth Unit
CI Financial Corp., a Canadian asset manager, has announced that it has entered into an agreement with Bain Capital and Abu Dhabi Investment Authority (ADIA) to acquire a majority stake in its US wealth management business. The deal is expected to close in the second half of 2023 and will see Bain and ADIA acquire a combined 60% stake in the business.
CI Financial is a publicly traded company that provides asset management services to institutional and retail clients in Canada and the United States. The company has over $200 billion in assets under management and is one of the largest independent asset managers in Canada.
The deal with Bain and ADIA will see the two firms acquire a majority stake in CI Financial’s US wealth management business, which includes its US-based registered investment advisor, CIBC Private Wealth Management. The business has over $20 billion in assets under management and provides wealth management services to high-net-worth individuals and families.
Benefits of the Deal
The deal is expected to provide CI Financial with a number of benefits. Firstly, it will provide the company with additional capital to invest in its US wealth management business. This will enable CI Financial to expand its presence in the US market and increase its market share.
Secondly, the deal will provide CI Financial with access to the expertise and resources of Bain and ADIA. This will enable the company to leverage the experience and knowledge of two of the world’s leading investment firms.
Finally, the deal will provide CI Financial with a partner that is committed to the long-term success of the business. Bain and ADIA have a long track record of successful investments and are committed to helping CI Financial grow its US wealth management business.
CI Financial’s Growth Strategy
The deal with Bain and ADIA is part of CI Financial’s growth strategy. The company has been actively expanding its presence in the US market and has recently acquired a number of US-based asset management firms.
The acquisition of a majority stake in its US wealth management business is part of CI Financial’s strategy to become a leading provider of wealth management services in the US. The company is also looking to expand its presence in other markets, such as Europe and Asia.
The Future of CI Financial
The deal with Bain and ADIA is expected to be a major boost for CI Financial. The additional capital and expertise provided by the two firms will enable the company to accelerate its growth in the US market and expand its presence in other markets.
The deal is also expected to provide CI Financial with a strong partner that is committed to the long-term success of the business. This will provide the company with the stability and resources it needs to continue to grow and succeed in the future.