CPE News (5.10.2022) – Mackenzie Investments has launched Mackenzie Northleaf Global Private Equity Fund, in partnership with Northleaf Capital Partners, further expanding the accessibility of alternative investments to Canadian retail accredited investors.
The launch of Mackenzie Northleaf Global Private Equity Fund represents the fourth private markets offering delivered through the Mackenzie Northleaf strategic partnership. Other funds include Mackenzie Northleaf Private Credit Interval Fund, Mackenzie Northleaf Private Credit Fund and Mackenzie Northleaf Private Infrastructure Fund.
The Fund seeks to achieve long term capital appreciation primarily through exposure to funds within Northleaf’s global private equity program, which has been successfully investing in private equity for more than 20 years. Over time it will invest approximately 75-80 per cent of assets into institutional private equity funds which invest across a spectrum of global mid-market private equity investments that offer high growth potential, including access to diversified portfolios of privately owned and managed companies through a combination of primary fund investments, secondary investments and direct investments. To facilitate liquidity, the Fund’s remaining assets will be invested primarily in Mackenzie Private Equity Replication Fund.
Founded in 1967, Mackenzie is a global asset manager with offices across Canada as well as in Boston, Dublin, London, Hong Kong and Beijing. Mackenzie is a member of IGM Financial Inc. (TSX: IGM), one of Canada’s premier financial services companies.
On October 28, 2020, Mackenzie Investments, together with Great-West Lifeco Inc., acquired a 49.9% non-controlling voting interest and a 70% economic interest in Northleaf Capital Group Ltd. through an acquisition vehicle 80% owned by Mackenzie and 20% owned by Lifeco for cash consideration of $241 million and up to an additional $245 million in consideration at the end of five years from the acquisition date subject to the business achieving exceptional growth in certain performance measures over the period.
“The Fund enables retail investors to expand their investment universe beyond publicly-traded equities,” said Michael Schnitman, Head of Alternatives, Mackenzie Investments. “The number of privately held companies far exceeds that of public companies and therefore represents a broader opportunity set that has largely been accessible only to institutional investors. We believe access to institutional quality private equity can help strengthen investor portfolios.”
photo credit: Mackenzie Investments
News Release
Mackenzie Investments Enhances Canadians’ Access to Private Equity with New Alternative Investments Fund
Mackenzie Northleaf Global Private Equity Fund allows retail investors to expand their investment universe and gain exposure to private equity
TORONTO, May 10, 2022 /CNW/ – Mackenzie Investments (“Mackenzie”) today announced the launch of Mackenzie Northleaf Global Private Equity Fund (“the Fund”), in partnership with Northleaf Capital Partners (“Northleaf”), further expanding the accessibility of alternative investments to Canadian retail accredited investors.
The Fund seeks to achieve long term capital appreciation primarily through exposure to funds within Northleaf’s global private equity program, which has been successfully investing in private equity for more than 20 years. Over time it will invest approximately 75-80 per cent of assets into institutional private equity funds which invest across a spectrum of global mid-market private equity investments that offer high growth potential, including access to diversified portfolios of privately owned and managed companies through a combination of primary fund investments, secondary investments and direct investments. To facilitate liquidity, the Fund’s remaining assets will be invested primarily in Mackenzie Private Equity Replication Fund.
“The Fund enables retail investors to expand their investment universe beyond publicly-traded equities,” said Michael Schnitman, Head of Alternatives, Mackenzie Investments. “The number of privately held companies far exceeds that of public companies and therefore represents a broader opportunity set that has largely been accessible only to institutional investors. We believe access to institutional quality private equity can help strengthen investor portfolios.”
The Fund’s structure represents an attractive offering to eligible retail investors and includes the following features:
Monthly valuations;
a $25,000 investment minimum;
investments are not locked for a certain period of time (no hard lock up)1;
monthly purchase frequency; and
semi-annual redemption frequency1
“This new offering presents retail investors with an exceptional opportunity to diversify their portfolios, as private equity accounts for the largest share of the private market investment space with an impressive history of strong, risk-adjusted returns,” concluded Mr. Schnitman.
The launch of the Fund represents the fourth private markets offering delivered through the Mackenzie Northleaf strategic partnership. Other funds include Mackenzie Northleaf Private Credit Interval Fund, Mackenzie Northleaf Private Credit Fund and Mackenzie Northleaf Private Infrastructure Fund.
About Mackenzie Investments
Mackenzie Investments is a leading investment management firm with $197.1 billion in assets under management as of April 30, 2022. Mackenzie provides investment solutions and related services to more than one million retail and institutional clients through multiple distribution channels. Founded in 1967, Mackenzie is a global asset manager with offices across Canada as well as in Boston, Dublin, London, Hong Kong and Beijing. Mackenzie is a member of IGM Financial Inc. (TSX: IGM), one of Canada’s premier financial services companies. For more information, visit mackenzieinvestments.com.
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1The Fund generally provides annual redemptions on 120 days’ notice. Units redeemed within three years are subject to an early redemption fee of 5%. In certain circumstances the manager has the right to suspend or defer redemptions. This would generally occur if circumstances existed under which liquidation by the fund of part or all of its investments was not reasonable or practicable; if redemption requests constituted greater than 7.5% of the Fund’s net asset value; or if a material portion of the Fund’s portfolio could not be reliably or accurately valued.
SOURCE Mackenzie Investments
For further information: English Media Inquiries: Hilary Bassett, 416-951-7558, hilary.bassett@igmfinancial.com; French Media Inquiries: Lara Berguglia, 514-994-2382, lara.berguglia@northstrategic.com