CI Financial announced Monday that it entered into a definitive agreement with an affiliate of Mubadala Capital, the alternative asset management division of Abu Dhabi-owned Mubadala Investment Company, to take CI private in a transaction valued at about Canadian $4.7 billion. The deal is expected to close in the second quarter of 2025.
CI shareholders will receive CA$32 in cash per share, which CI said represents a 33% premium over the stock’s last closing price and 58% over the 60-day volume-weighted average trading price.
The offer, which CI said was unanimously approved by a special committee of independent members of its Board of Directors, values CI’s enterprise at about CA$12.1 billion.
The firm said that the transaction will provide it with long-term, stable capital and support its growth strategy wealth and asset manager as well as its expansion in the U.S., where it operates as Corient.
“Mubadala Capital invests with a long-term outlook and represents long-term capital – providing stability and certainty for CIʼs clients and employees,” said Kurt MacAlpine, CEO of CI. “With this transaction, CI has never been better positioned to fulfil our mission of delivering outstanding services and solutions to our clients.”
He added: “The transaction preserves Corient’s structure and its unique Private Partnership model, under which 250 of our colleagues are equity Partners in Corient. Our partnership model is highly differentiated in our industry – it allows us to deliver the best of the firm to all clients and creates a culture of collaboration and unified purpose.”
“This transaction, with its significant cash premium, represents an exceptional outcome for CI shareholders and provides certainty to shareholders.”
William E. Butt, CI’s Lead Director and Chair of the Special Committee
“This transaction, with its significant cash premium, represents an exceptional outcome for CI shareholders and provides certainty to shareholders while CI pursues its ongoing transformation,” according to William E. Butt, CI’s Lead Director and Chair of the Special Committee.
The deal also “provides significant benefits to Canada, by providing long-term capital to underpin the building of a Canadian champion in the wealth and asset management industries,” said Butt.
“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.
“We look forward to partnering with CI’s talented team to capitalize on new opportunities in the asset and wealth management sectors.”
Hani Barhoush, Managing Director and CEO of Mubadala Capital
“We look forward to partnering with CI’s talented team to capitalize on new opportunities in the asset and wealth management sectors and build on the company’s successes,” according to Oscar Fahlgren, Chief Investment Officer, Mubadala Capital.
CI To Keep Canadian Headquarters
CI will remain headquartered in Canada and its existing operations and structure in Canada will stay in place, the firm said. That includes maintaining CI’s existing technology and data protection practices, including maintaining all personal data in Canada for Canadian operations.
The transaction will maintain CI’s existing leadership and its team across CI’s multiple offices in Canada, while also creating the opportunity for new hiring in Canada to support growth, it said.
Mubadala Capital has a team of more than 200 people spanning five offices, including in Abu Dhabi, New York, London, San Francisco and Rio de Janeiro, according to the company.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.
