CI Financial to Divest Stake in its U.S. Wealth-Management Business to Investor Consortium – WSJ



CI Financial to Divest Stake in its U.S. Wealth-Management Business to Investor Consortium - WSJ
CI Financial to Divest Stake in its U.S. Wealth-Management Business to Investor Consortium - WSJ



CI Financial to Divest Stake in its U.S. Wealth-Management Business to Investor Consortium – WSJ



CI Financial to Divest Stake in its U.S. Wealth-Management Business to Investor Consortium – WSJ

Canadian investment company CI Financial Corporation plans to sell a majority stake in its United States wealth-management business to a consortium of investors led by value-oriented Engle Capital Management for an undisclosed price. The deal allows CI Financial to focus on expanding its wealth management, asset management, and fee-based businesses in its home country.

What is CI Financial, and what stake is it selling?

CI Financial is a Canadian investment company that is among the largest independent firms in the nation. It is selling a majority stake in its U.S. wealth-management business to an investor consortium, allowing the firm to focus on its asset management, fee-based businesses, and wealth management in Canada.

Who is buying the stake?

The investor consortium that is buying the majority stake is led by Engle Capital Management, a value-oriented investment firm that focuses on innovation and company culture. Other investors in the deal include Linda Martinson and Ashish Dhawan. The deal is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2021.

Why is CI Financial selling the stake?

CI Financial is selling the majority stake in its US wealth-management business so it can focus on its core businesses in Canada, including asset management, wealth management, and fee-based businesses. CI Financial believes that these businesses have the most significant growth opportunities and will lead to more significant benefits for shareholders.

What are the benefits of the deal for CI Financial?

The sale of the majority stake in its US wealth-management business will allow CI Financial to focus on its core businesses in Canada. It gives the company a chance to expand its asset management, wealth management, and fee-based businesses in Canada, which are areas with significant growth potential.

What are the benefits of the deal for Engle Capital Management and other investors?

Engle Capital Management and the other investors in the consortium will acquire a majority stake in a leading US wealth-management business with significant growth opportunities. The deal aligns with the company’s investment philosophy and focus on culture and innovation.

Summary:
Canadian investment company CI Financial Corporation is selling a majority stake in its US wealth-management business to an investor consortium led by Engle Capital Management. The deal will enable CI Financial to focus on its asset management, fee-based businesses, and wealth management in Canada, while Engle Capital Management and other investors will acquire a majority stake in a leading US wealth-management business with significant growth opportunities. The deal is set to be completed in the second quarter of 2021, subject to customary closing conditions. #BUSINESS

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