Mubadala Capital moves to take CI Financial private with $4.7bn offer

Mubadala Capital, the alternative asset management division of Mubadala Investment Company, has announced a definitive agreement to acquire CI Financial Corporation in a landmark transaction worth $4.7 billion Canadian dollars. The deal, which will take CI Financial private, offers shareholders $32.00 per share in cash—a significant 33% premium over the company’s last closing price and a 58% premium over its 60-day volume-weighted average trading price.

This transformative agreement, approved unanimously by CI Financial’s independent board members, provides the company with a stable infusion of long-term capital while ensuring continuity in its Canadian operations, leadership, and strategic vision. Chief Executive Officer Kurt MacAlpine will continue to lead the organisation, maintaining its headquarters in Toronto.

A new era for CI Financial with Mubadala Capital

The acquisition is designed to support CI Financial’s growth across its asset and wealth management businesses, including its U.S. operations under the Corient brand. Mubadala Capital, managing $24 billion USD in global assets, emphasised its commitment to long-term investment, stability, and independence for CI Financial’s operations.

CEO Kurt MacAlpine highlighted Mubadala’s alignment with CI Financial’s mission to deliver superior wealth management services while fostering business growth. The firm’s philanthropic initiatives and privacy protocols, including retaining all Canadian personal data domestically, will remain intact.

Additionally, Mubadala Capital intends to invest an extra $750 million upon closing to strengthen CI Financial’s financial position by reducing preferred equity, ensuring its operational agility and investment-grade debt ratings.

Benefits to shareholders and Canada

CI Financial shareholders stand to benefit from substantial returns, while the Canadian market will gain a stronger, well-funded player in the financial services industry. The premium offer provides a high-value outcome, backed by financial and strategic stability.

According to Lead Director William E. Butt, the deal represents an exceptional opportunity for shareholders and aligns with CI Financial’s ongoing transformation. The acquisition’s benefits also extend to Canada’s broader economy, with the creation of growth opportunities and the reinforcement of the company’s domestic footprint.

Approval process and closing timeline

The transaction is structured under the Business Corporations Act of Ontario and requires shareholder approval at a meeting scheduled for January 2025. Regulatory clearance and court approvals are also prerequisites for the deal to proceed, with the acquisition expected to close in the second quarter of 2025.

Mubadala Capital has addressed potential challenges with the inclusion of termination fees to secure the agreement’s integrity. A $150 million fee applies should CI Financial terminate the deal under certain conditions, while a reverse termination fee of $225 million will apply if Mubadala fails to meet regulatory requirements.

Industry impact and future opportunities

This acquisition bolsters CI Financial’s position as a global wealth management leader, managing over $518 billion in assets as of September 2024. The transaction underscores Mubadala Capital’s strategy of partnering with top-performing firms in private markets, creating a platform for continued success.

By preserving CI Financial’s unique operating models, such as Corient’s Private Partnership structure, the deal ensures seamless service delivery and fosters collaboration within the organisation. CI Financial’s Canadian and U.S. teams will remain focused on expanding their client base and offering innovative financial solutions.