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An investor analyzing a stock chart.
An investor analyzing a stock chart.
(B Szewczyk/Getty Images/iStockphoto)

The asset manager CIBC covets is tricky to value

Good luck pegging a ballpark valuation on Russell Investments, the asset manager that CIBC and private equity funds are eyeing. This isn’t your traditional fund company.

Typically when asset managers come up for grabs, the deals are inked at prices that amount to between one and two per cent of assets under management. If a company has $100-billion in AUM, buying it for $1-billion is considered cheap, while scooping it up for $2-billion is getting expensive.