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Direct Investment  + Financial Advisory  + IPOs  + RIAs & Financial Advisors  | 
CI Financial Prepares IPO of Its US Wealth Division

CI Financial Prepares IPO of Its US Wealth Division

CI Financial has begun the process to hold an initial public offering (IPO) of its US wealth-management unit.

The US division, which manages about $183bn in assets and is now CI Financial’s largest business line by assets, has submitted a draft registration statement with the US Securities and Exchange Commission (SEC) for an IPO.

A date for the IPO has not yet been set.

Toronto-based CI Financial has often discussed holding an IPO of its wealth business to pay down debt, which totaled $3bn at the end of September 2022, and separate its Canadian and US businesses.

The fund management company’s borrowing has become an issue for investors. In November, CI Financial sold $400 million worth of bonds at a yield of 7%.

Plans to offload up to 20% of the US wealth arm through an IPO were announced in April. CI Financial will retain the remaining stake.

This move also comes amid the firm’s recent expansion in the US through purchases of registered investment advisory businesses.

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About Joe Palmisano

Joe Palmisano is Editorial Director for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.