Mubadala capital To acquire CI Financial For $8.6 Billion: A Game-Changer In Wealth Management
Toronto, Canada – In a landmark transaction poised to reshape the North American wealth management landscape, Mubadala Capital, the $24 billion asset management division of Abu Dhabi’s mubadala Investment Company, has reached an agreement to acquire CI Financial for $8.66 billion (CAD$12.1 billion) in cash and assumed debt.
The deal, expected to finalize in the second quarter of 2025, will see Mubadala Capital pay $23.04 (CAD$32) per share, a substantial 33% premium over CI Financial’s recent closing price. This acquisition underscores Mubadala’s strategic emphasis on expanding its footprint in the global wealth management sector. What does this acquisition mean for the future of wealth management?
Key Highlights Of The CI Financial Acquisition
- Acquisition Price: $8.66 billion (CAD$12.1 billion)
- Premium: 33% above CI Financial’s last closing price
- Share Price: $23.04 (CAD$32) per share
- Expected Closing: Second quarter of 2025
CI Financial has built a strong presence in the North American wealth sector,primarily through acquiring registered investment advisors (rias). Even though CI Financial divested a minority stake in its U.S.operations, it operates under the brand Corient in the U.S., which it adopted in August 2023, and will continue to operate independently.
Leadership and Operational continuity
crucially, the agreement ensures that CI Financial’s current leadership team, led by CEO kurt MacAlpine, will remain in place. MacAlpine is reinvesting his entire equity stake back into the transaction,signaling confidence in the company’s future under Mubadala’s ownership. following the deal’s completion, CI’s shares will be delisted from the Toronto Stock exchange.
Did You Know? Mubadala Investment Company manages a diverse portfolio of assets across various sectors, including aerospace, healthcare, and real estate, reflecting Abu Dhabi’s strategic investment priorities.
Commitment To canada
The acquisition offers significant benefits to Canada, including maintaining CI’s Canadian headquarters and operations. Mubadala Capital has committed to preserving CI’s existing workforce in Canada and intends to recruit additional staff to support future growth. Data protection protocols will remain, ensuring all personal data from Canadian operations stays within Canada. How will this acquisition affect Canadian jobs?
Advisors And Approvals
jefferies Securities is the lead financial advisor to Mubadala Capital, with BMO Capital Markets also advising. Legal counsel is provided by Blake, Cassels & Graydon and Latham & Watkins for Mubadala Capital, and by Stikeman Elliott and Skadden, Arps, Slate, Meagher & Flom for CI Financial. RBC Capital Markets is also advising CI, while FGS Longview is acting as strategic communications and public affairs advisor to Mubadala Capital.
The transaction awaits approval from two-thirds of CI shareholders and various regulatory bodies.
| Company | Role |
|---|---|
| Jefferies Securities | Lead Financial Advisor to Mubadala Capital |
| BMO Capital Markets | Financial Advisor to Mubadala Capital |
| Blake, Cassels & Graydon | Legal Counsel to Mubadala Capital |
| Latham & Watkins | Legal Counsel to Mubadala Capital |
| Stikeman Elliott | legal Advisor to CI Financial |
| Skadden, Arps, Slate, Meagher & Flom | Legal Advisor to CI Financial |
| RBC Capital Markets | Advisor to CI Financial |
| FGS Longview | Strategic Communications Advisor to Mubadala Capital |
The Evolving Landscape Of Wealth Management
The wealth management industry is undergoing a significant change, driven by technological advancements, changing demographics, and evolving client expectations. Firms are increasingly focusing on providing personalized advice, leveraging data analytics, and offering sustainable investment options. this acquisition positions Mubadala capital to capitalize on these trends by integrating CI Financial’s established platform and expertise.
Pro Tip: investors should closely monitor the evolving regulatory landscape and seek advice from qualified financial professionals to navigate the complexities of wealth management effectively.
Frequently Asked Questions About the Acquisition
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