The News
Abu Dhabi has landed a deal in the lucrative — and booming — asset management business, agreeing to take private a Canadian wealth management firm through a unit of Mubadala Capital.
The $3.4 billion deal, subject to regulator approval, values Toronto-listed CI Financial Corp. at $12.1 billion and boosts the sovereign wealth fund’s North American financial services portfolio following its majority acquisition of New York’s Fortress Investment Group this year.
Demand for stakes in asset management businesses (from other asset management businesses) is rising, driven by their steady stream of cash from management fees and annual returns up to the high teens, Semafor previously reported. From practically zero acquisitions of this kind in the early 2010s, there were 38 such deals last year, with newer players like Mubadala getting in on the game.