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Industry Spotlight > RIAs

CI Financial Plans IPO for U.S. Wealth Unit

By Janet Levaux

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CI Financial says it intends to sell up to 20% of its U.S. wealth management business through a U.S. initial public offering later this year and has not yet filed a registration statement with the Securities and Exchange Commission. 

The news comes a week after CI Financial, which is based in Toronto and Miami, said it was buying the wealth management business of RIA Eaton Vance WaterOak Advisors from Morgan Stanley; this deal involved $11.4 billion of client assets and operations formerly doing business as Eaton Vance Investment Counsel, or EVIC, of Boston. 

Once this transaction is wrapped up, the assets on CI’s RIA platform in the U.S. — CI Private Wealth — are expected to be about $133 billion, according to the firm, which has made 30-plus acquisitions since 2020.

“The growth in our U.S. wealth management business is incredible; however, in our opinion, the value we have created isn’t reflected in our share price today,” said CI Financial CEO Kurt MacAlpine, in a statement. “After a thorough evaluation of our strategic options, we are confident that a U.S.-listed subsidiary IPO is the best route to shareholder value creation.”

The company says it plans to use the IPO’s net proceeds “to pay down debt,” with CI remaining the majority shareholder of the U.S. wealth management business. At present, it “has no intention of spinning out or otherwise divesting its remaining ownership interest;” and details on the size of the IPO, its timing and other conditions are “subject to market conditions.”

In January, Dynasty Financial Partners filed a registration statement with the SEC for an IPO to raise $100 million. The firm, led by Shirl Penney and based in St. Petersburg, Florida, plans to list on the Nasdaq under the symbol DSTY. As of year-end 2021, its network included about 45 RIAs with close to 300 financial advisors and $65 billion in client assets.

CI’s U.S. wealth management business also includes: Barrett Asset Management; Balasa Dinverno Foltz; Bowling Portfolio Management; Brightworth; BRR OpCo; The Cabana Group; CPWM; Congress Wealth Management; Dowling & Yahnke; Doyle Wealth Management; Gofen & Glossberg; Matrix Capital Advisors; McCutchen Group; OCM Capital Partners; Portola Partners Group; Radnor Financial Advisors; RegentAtlantic Capital; The Roosevelt Investment Group; RGT Wealth Advisors; R.H. Bluestein & Co.; Segall Bryant & Hamill; Stavis & Cohen Private Wealth; and Surevest.

(Photo: Shutterstock)

Janet Levaux

@Think_JanetL

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