CI Financial plans to spin off its U.S. wealth management unit after an expansion fueled by dozens of acquisitions.
The firm will sell as much as 20% of the business through an initial public offering and will file a prospectus with the Securities and Exchange Commission later this year, according to a statement. Toronto-based CI said it will use the proceeds to pay debt. The shares gained as much as 3.5%.
“We’re doing this for strategic considerations,” CEO Kurt MacAlpine said in an interview.
CI has sought to capitalize on surging demand for financial advice by buying smaller competitors. The U.S. wealth business, which opened a Miami office last year as a base of operations, has made more than 30 acquisitions since entering the market in 2020. It rapidly ramped up assets, which will total about $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.
