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.