CI Financial Corporation has been closing a lot of deals in the United States over the last 12 months, and now the financial firm is pursuing a listing in the American stock market. However, the company is looking to close an even more ambitious deal for a global audience of investors.
Globalizing CI Financial Corp has become a priority. The move to Wall Street could happen within one year. One of the details is that the next deal pursued by CI could have an opening of around $2.3 billion.
Part of the strategy formulated by the company consists of acquiring wealth management firms and taking over their client base. A recent acquisition involved a private firm in Illinois that has about $4.5 billion under management. The ultimate goal is to continue expanding in the U.S., but the Canadian company believes that it would be easier to do with a stock listing on Wall Street.
Why Stock Performance is Crucial for CI Financial Corp
On the Toronto Stock Exchange, CI Financial has experienced a rough go since late February. It should be noted that the Canadian market started reacting to the coronavirus pandemic a few weeks before Wall Street crashed in March, so CI Financial has seen its stock plummet by more than 40% since February.
Even though the company appears to be in good shape, executives are focused on catching up to the big leagues of asset management in Canada; we are talking about the likes of Toronto Dominion and the Royal Bank of Canada. Kurt MacAlpine, CEO of CI Financial, is firmly convinced that expanding international operations is the way to go, but this is something that can be better accomplished with a solid presence on Wall Street.
Most prospective investors are going to look at shares of CI Financial before making a decision to entrust the management of their assets; this is like glancing at a curriculum vitae or job resume, and investors are more responsive to seeing the Nasdaq or the New York Stock Exchange than the Toronto Stock Exchange.
Seeking More Deals in the U.S.
Something else that McAlpine sees happening in the U.S. is the dynamic way that deals are arranged and closed. When compared to Canada, which is a more financially conservative market, McAlpine is counting on the experience of the money managers that CI Financial will inherit when acquiring American firms.
For this company, getting some good managers from other American industries means pulling a new book of clients; this has a greater potential to pay off in the near future. This is also a good way to get managers in other sectors to help with their investment portfolios and even start learning the nuances of the Canadian market.
CI Financial Corp is talking to some of the biggest names in private equity; money management professionals who have already been involved in private equity deals in one way or another. This is a company that wants to be tied to the biggest investment banking firms on Wall Street, and it is ready to look beyond Canada to do so.
