IGM Financial Announces Additional Investment in Wealthsimple to Support Accelerated Growth

Value of IGM's investment in Wealthsimple increases by $341 million to $2.93 billion

WINNIPEG, MB, Oct. 27, 2026 /CNW/ -- IGM Financial Inc. ("IGM" or "the Company") (TSX: IGM), one of Canada's leading diversified wealth and asset management companies, today released details related to Wealthsimple's announcement of an equity financing round of up to $425 million.

The transaction consists of a $300 million primary offering and a secondary offering of up to $125 million. The transaction is led by GIC. Other investors include IGM, Power Corporation of Canada, ICONIQ, CPP Investments, and Inovia. The financing will support Wealthsimple's next phase of growth, including product expansion and continued investment in its technology infrastructure.

As a result of the announcement, IGM will increase the fair value of its investment in Wealthsimple by $341 million, or 13 per cent ($1.49 per IGM share), from $2.59 billion to $2.93 billion. Further:

• IGM will invest an additional $96 million in Wealthsimple.
• Following the close of the transaction, IGM will hold a 25.1 per cent interest¹ with a value of $3.03 billion, after the additional investment, representing a total value of $13.20 per IGM share.
• IGM will continue to be the single largest shareholder of Wealthsimple.

"Wealthsimple continues to reshape how Canadians engage with financial services, and its progress over the past year underscores the strength of its platform and the opportunity ahead," said Damon Murchison, President and CEO, IGM Financial and IG Wealth Management. "Our additional investment reflects our confidence in the business, its leadership and its long-term growth potential. As Wealthsimple's single largest shareholder, we are proud to continue supporting its ambition while creating meaningful value for IGM shareholders."

The transaction highlights the value of IGM's strategy of investing in leading wealth and asset management businesses with strong growth potential. Its strategic holdings, including Wealthsimple, Rockefeller Capital Management, China Asset Management Co., Ltd. and Northleaf Capital Partners, expand IGM's growth opportunities alongside IG Wealth Management and Mackenzie Investments, providing additional sources of earnings and diversification over the long term.

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2026.

FORWARD-LOOKING STATEMENT

Certain statements in this release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect IGM's and, where applicable, its subsidiaries' and strategic investments', current expectations. Forward-looking statements are provided to assist the reader in understanding management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the size, use of proceeds and timing of closing of the offering and IGM's interest in Wealthsimple and the value thereof. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances. While the Company considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, including environmental and social, strategic goals and priorities will not be achieved.

A variety of material factors, many of which are beyond the Company's and its subsidiaries' and strategic investments' control, affect the operations, performance and results of the Company and its subsidiaries and strategic investments, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, changes in government regulations and legislation, unexpected judicial or regulatory proceedings, catastrophic events, outbreaks of disease or pandemics  and the Company's and its subsidiaries' and strategic investments' success in anticipating and managing the foregoing factors.

The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forward-looking statements.  

Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of the Company's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including this Management's Discussion and Analysis and its most recent Annual Information Form, filed with the securities regulatory authorities in Canada, available at www.sedarplus.ca.

ABOUT IGM FINANCIAL INC.

IGM Financial Inc. ("IGM", TSX: IGM) is a leading Canadian diversified wealth and asset management organization with approximately $346 billion in total assets under management and advisement as of September 30, 2026. The company is committed to bettering the lives of Canadians by better planning and managing their money. IGM's activities are carried out principally through IG Wealth Management and Mackenzie Investments and are complemented by strategic positions in wealth managers Rockefeller Capital Management and Wealthsimple and asset managers ChinaAMC and Northleaf Capital. These strengthen IGM's capabilities, reach and diversification. IGM is a member of the Power Corporation group of companies. For more information, visit www.igmfinancial.com.

ABOUT WEALTHSIMPLE

Wealthsimple is Canada's leading financial innovator. The company offers a full suite of simple, sophisticated financial products across chequing and spending, managed investing, self-directed trading and tax filing. Wealthsimple serves more than four million Canadians and holds approximately $169 billion in assets under administration as of September 30, 2026. The company was founded in 2014 by a team of financial experts and technology entrepreneurs and is headquartered in Toronto. To learn more, visit www.wealthsimple.com.

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¹ Calculated using the treasury method which includes options that are in the money and assumes option proceeds are used to repurchase shares.

SOURCE IGM Financial Inc.

For more information contact: Media Relations, Nini Krishnappa, 647-828-2553, [email protected]; Investor Relations, Kyle Martens, 204-777-4888, [email protected]