Abu Dhabi-Affiliate Mubadala Capital Acquires CI Financial for $8.6B
Mubadala Capital, the $24 billion alternative asset management arm of Abu Dhabi’s Mubadala Investment Company, has agreed to pay $8.66 billion (CAD$ 12.1 billion) in cash and debt for Toronto-based wealth manager CI Financial.
Mubadala Capital will pay $23.04 (CAD$ 32) per share, representing a 33% premium to the company’s last closing price, or about $4.7 billion.
CI Financial has established its reputation in the North American wealth sector as a significant acquirer of registered investment advisors (RIAs) in recent years, although it later divested a minority stake in its U.S. operations. In the U.S., the organization functions under the name Corient, a brand it adopted in August 2023. This business will operate independently under that brand.
Since CI Financial’s entry into the US RIA sector in 2020, it has emerged as one of the industry’s most rapidly expanding wealth platforms via acquisitions and organic growth.
“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 agreement will preserve CI’s current leadership under CEO Kurt MacAlpine, who will reinvest his entire equity stake in the transaction. CI’s shares will be removed from the Toronto Stock Exchange following the completion of the transaction.
The acquisition guarantees multiple advantages for Canada, notably the retention of CI’s Canadian headquarters and operations. Mubadala Capital has pledged to preserve CI’s existing workforce in its Canadian offices and has expressed intentions for possible new recruitment to facilitate growth. The company will maintain its current technology and data protection protocols, ensuring that all personal data from Canadian operations remains within Canada.
The transaction, expected to close in the second quarter of 2025, requires approval from two-thirds of CI shareholders and various regulatory clearances.
Jefferies Securities is serving as lead financial advisor to Mubadala Capital, with BMO Capital Markets also advising. Blake, Cassels & Graydon and Latham & Watkins are providing legal counsel to Mubadala Capital, while Stikeman Elliott and Skadden, Arps, Slate, Meagher & Flom are serving as legal advisors to CI Financial. RBC Capital Markets is also advising CI, and FGS Longview is acting as strategic communications and public affairs advisor to Mubadala Capital.