Good morning!
Wealthsimple raised fresh funding to help Canadians hang up on their banks. Meanwhile, Bell has La Caisse on the line for a stake in its wireless towers.
Let’s get into it.
MARKET RUNDOWN
Yesterday’s Close
A US$63B deal to finance Broadcom AI chips for Anthropic helped extend Wall Street’s tech rally, with the Nasdaq leading gains.
WTI fell as Iran’s talks with Saudi Arabia, Turkey, and Pakistan eased supply fears.
AI data centre hardware maker Celestica’s earnings beat and stronger gold lifted the TSX despite energy losses.
BRIEF OF THE DAY
Wealthsimple Announces Up to $425M Financing at a $13.8B Valuation to Expand its Challenge to Banks
The deal: Toronto-based fintech platform Wealthsimple, which currently has over 4M Canadian users, agreed to an equity financing of up to $425M at a $13.8B post-money valuation, up 38% from a year ago. The transaction is expected to close in Q4 2026.
Where the money goes: Wealthsimple would receive $300M in fresh capital to expand its business accounts, everyday banking, trading & investing services, and upgrade its technology infrastructure. Investors would spend up to another $125M buying existing shares from employees; this portion does not fund the company’s operations.
The backers: Singaporean sovereign wealth fund GIC is leading the round, with participation from existing investors CPP Investments, ICONIQ, Inovia, Power Corporation, and Power subsidiary IGM Financial. Power and IGM are committing a combined $164M, keeping the group’s ownership substantially unchanged.
The expansion: Wealthsimple’s client assets under administration reached $169B as of September 30, up from $100B in October 2025. The fintech, which says it is profitable, has been expanding beyond investing into everyday financial services, including chequing accounts, credit cards, and business accounts. In Q2 2026, new chequing account openings exceeded new investment accounts for the first time.
The non-bank model: Wealthsimple competes with banks while relying on them to hold customers’ chequing deposits in trust. It is not itself a bank, and CEO Michael Katchen says that it has no short-term plans to seek a banking licence.
💼 Why this matters: Becoming the place where customers receive their paycheques and pay bills would give Wealthsimple more opportunities to win their investment and borrowing business. That could put pressure on banks’ fees and their ability to retain customers across multiple products. But those relationships are difficult to displace: a recent federal review found that more than half of Canadians have been with their main financial institution for at least 15 years.
HEADLINE RECAP
In Canada
Canada and UAE sign trade deal eliminating tariffs on more than 99% of Canadian exports as Carney expands Middle East investment ties (GM)
TMX Group (TSX:X) CEO calls for reduced regulatory and cost burdens on issuers to help Canadian markets compete (GM)
Olivia Chow reelected Toronto mayor for second term, extending housing and affordability agenda (BBG)
BMO’s Head of Diversified Industries Craig King named CIO of Invest in Canada to help drive $1T investment push (RTRS)
CAAT Pension Plan names OPTrust’s Peter Lindley as CEO (GM)
Higher U.S. tariffs on Canadian imports would be “catastrophic”, Honda exec says (RTRS)
Ontario unveils reforms for 58 local utilities as grid investment needs rise to as much as $120B amid power demand growth (GM)
Toronto-based Celestica (TSX:CLS), an AI data centre hardware maker, expects sales to nearly double to US$40B in 2027 as AI demand surges (TL)
Swedish defence firm Saab signs agreement with Halifax aerospace company IMP to assemble Gripen fighter jets if Canada orders them (GM)
OMERS Ventures sells part of Xanadu stake, recovers invested capital while remaining major shareholder (GM)
RBC (TSX:RY) blocks third-party AI agents from accessing customer accounts, citing “unacceptable” risk (BBG)
OSFI won’t dictate whether banks block third-party AI agents (TL)
DEALS WITH CANADIAN PARTIES
M&A & Investments
BCE (TSX:BCE) agreed to sell 49.9% of Bell Canada’s Canadian wireless tower business to La Caisse for $2.45B, with Bell retaining majority control; the business covers more than 5,000 Canadian sites.
Citi advised BCE; TD advised La Caisse; National Bank provided financing to La Caisse.
AIMCo-backed Howard Energy Partners agreed to acquire Iron Horse Midstream, an Oklahoma natural gas gathering and processing business, from investment manager Sixth Street.
Moelis was exclusive financial advisor to Howard Energy Partners; RBC and Jefferies advised Iron Horse Midstream and Sixth Street.
RISE Properties Trust: The Canadian apartment REIT sold Seattle’s 111-unit Northline Apartments to real estate investment firm FPA Multifamily for US$17.75M (~$25M).
Elemental Royalty (TSX:ELE): The gold-focused mining royalty & streaming company proposed selling its mineral exploration business to Carlin East for US$8.5M (~$12M) in shares, expected to represent ~19.9% of Carlin after its financing; Elemental would retain its 100-plus early-stage royalty portfolio and half the production royalties from transferred assets.
VC & Growth Equity
Wealthsimple: The Toronto-based fintech announced an equity round of up to $425M at a $13.8B post-money valuation, led by GIC with participation from Power Corporation, IGM Financial, ICONIQ, CPP Investments, and Inovia. The round comprises $300M in new capital and up to $125M in secondary share sales, with proceeds funding product expansion and technology infrastructure.
Harlo Equity Partners: The Toronto-based investor led a £3.2M (~$6.0M) growth round for Troubadour, a London-based backpack and luggage brand, alongside Pembroke VCT, Bayes Entrepreneurship Fund, and Norrice Finance.
Novalta Partners reportedly advised Troubadour on the fundraising.
ECM
Terrestrial Energy (NASDAQ:IMSR): The Canadian-founded nuclear reactor developer authorized up to US$25M in share buybacks through October 2027.
Lycos Energy (TSXV:LCX): The Calgary-based heavy oil producer renewed its share buyback program for up to 10.7M shares (~10% of public float) through November 2027, more than doubling its previous 4.7M-share limit.
DCM & Credit
Royal Caribbean Group (NYSE:RCL): The Miami-based cruise operator secured a US$400M 5-year senior unsecured term loan from Export Development Canada (EDC), available to draw through October 2027.
U.S. Bancorp (NYSE:USB): The Minneapolis-based bank is reportedly preparing a $750M–$1B Canadian-dollar bond offering as early as next week, potentially its first in the Canadian market since 2005.
Private Funds
Vistara Growth: The Vancouver-based private credit firm launched its 6th fund, an evergreen vehicle targeting US$500M to provide debt and equity financing to mid- and late-stage North American technology companies. Vistara aims to secure a US$200-250M first close by the end of November, supported by an up-to-US$125M anchor commitment from Vancouver-based Beedie Capital announced in August.
BAY STREET TRIVIA
FOR THE GROUP CHAT
