CI Financial agrees to take-private deal valuing firm at $8.7B

CI Financial agrees to take-private deal valuing firm at $8.7B
Kurt MacAlpine, CEO of CI Financial.
The financial giant once known for its aggressive US acquisition strategy is now being snapped up by a Middle Eastern sovereign wealth manager.
NOV 25, 2024

Editor's note: This story has been updated to reflect valuations and prices in US dollars. An earlier version of the story provided figures in Canadian dollars.

CI Financial, the Canadian parent company of Corient, has been acquired and will be taken private in a deal that values CI's enterprise at approximately $8.7 billion.

The deal announced Monday, which values CI's equity at about $3.4 billion, is with Mubadala Capital, the alternative asset management arm of Mubadala Investment Company.

All issued and outstanding CI shares will be acquired for a cash consideration of $22.90 per share, a 33 percent premium on the last closing price prior to the announcement of the transaction. 

CI will continue to operate with its current structure and management team. Kurt MacAlpine, CEO of CI, will continue in his role. The shares held by members of senior management will enter into equity rollover agreements.

The deal, unanimously approved by a special commitee of independent members of CI's board, recommends that CI shareholders vote in favour of the transaction. 

“This transaction, with its significant cash premium, represents an exceptional outcome for CI shareholders and provides certainty to shareholders while CI pursues its ongoing transformation,” said William E. Butt, CI’s lead director and chair of the special committee, said in a statement Monday. “It also provides significant benefits to Canada, by providing long-term capital to underpin the building of a Canadian champion in the wealth and asset management industries.”

Mubadala Investment Company is an Emirati sovereign investor headquartered in Abu Dhabi managing $302 billion in assets. 

“We are fully aligned with the strategy and direction of the firm and look forward to working with the CI management team to continue to build this outstanding business and ensure that CI continues to deliver superior services to its clients,” said Hani Barhoush, managing director and CEO of Mubadala Capital.

The deal, once approved, will provide valuable capital to support CI’s expansion into the US market under the Corient brand. Previously, MacAlpine had indicated Corient, formerly known as CI Private Wealth, would go public via an IPO in 2026

“We’re excited to continue to execute our U.S. strategy with our incredibly talented team,” said MacAlpine. “Notably, the transaction preserves Corient’s structure and its unique Private Partnership model, under which 250 of our colleagues are equity Partners in Corient. Our partnership model is highly differentiated in our industry – it allows us to deliver the best of the firm to all clients and creates a culture of collaboration and unified purpose.”
 

Latest News

Women take the lead in most households' financial decisions, CFP Board finds
Women take the lead in most households' financial decisions, CFP Board finds

New research reveals women's influence in family decision-making, their top financial goals, and how concern for other household members helps shape their priorities.

Creative Planning expands in California with Maxwell Wealth Strategies
Creative Planning expands in California with Maxwell Wealth Strategies

The $345 billion RIA giant is extending its footprint in the West Coast as it lands its first deal for 2025.

Client retention is job number one
Client retention is job number one

Advisors leaning heavily toward fee-based services today enjoy a key competitive edge over commission-based practices – and it all hinges on preserving client loyalty.

Fed's Barr sounds off on risks from AI's speed
Fed's Barr sounds off on risks from AI's speed

The top cop at the Federal Reserve speaks out on possible herding behavior, with economic "gains being realized only by a small group."

60-year-old New York broker-dealer files bankruptcy, closes down
60-year-old New York broker-dealer files bankruptcy, closes down

Stoever, Glass & Co. Inc. opened in May 1964 and focused on municipal bonds.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.