CPE Media News (4/14/2020) – – CI Financial Corp. (TSX: CIX) and Adams Street Partners, LLC have entered strategic partnership pursuant to which Adams Street Partners will develop investment solutions exclusively for CI that provide Canadian investors access to private investments in markets around the world.
CI’s initiative to expand its capabilities in alternative investments supports its three overall strategic priorities: modernizing its asset management business; expanding its wealth management platform; and globalizing the firm. Alternatives are playing an increasingly important role in CI’s wealth management business, given the relevance of these strategies for high-net-worth and ultra-high-net-worth clients.
Founded in 2917, Adams Street is a pioneer in private markets investment management. The independent, 100% employee-owned firm is dedicated exclusively to private markets and manages US $40 billion. Adams Street has four offices in the United States, and global offices in London, Munich, Singapore, Beijing, Tokyo, and Seoul.
photo credit: CI, Adam Street
News Release
CI Financial announces partnership with leading global private markets investment firm
TORONTO (April 14, 2020) – CI Financial Corp. (“CI”) (TSX: CIX) announced today a strategic partnership with Adams Street Partners, LLC (“Adams Street”), a global leader in private markets investment management. Adams Street is developing investment solutions exclusively for CI that provide Canadian investors access to private investments in markets around the world.
“We believe private market and other alternative investments can provide investors with valuable benefits, including the potential for added diversification, stability and downside support,” said Kurt MacAlpine, CI Chief Executive Officer. “Our liquid alternatives lineup has performed comparatively well during the recent volatility and we are expanding our product choices in alternatives by adding private markets options. Partnering with Adams Street allows us to benefit from their world-class expertise, leadership and more than 45 years’ experience in private markets investing, while customizing investment solutions to meet the specific needs of our accredited investor clients.”
Adams Street was founded in 1972 and is a pioneer in private markets investment management. The independent, 100% employee-owned firm is dedicated exclusively to private markets and manages US$40 billion. Adams Street has four offices in the United States, as well as offices in London, Munich, Singapore, Beijing, Tokyo and Seoul.
“We are pleased to join CI Financial in developing unique innovative private markets investment solutions for CI’s Canadian clients,” said Jeff Diehl, Managing Partner and Head of Investments at Adams Street. “Our partnership will allow us to provide Canadian investors with access to a global portfolio of private equity and private credit investments. Historically, these investments have primarily been available only to large institutional investors.”
CI’s initiative to expand its capabilities in alternative investments supports its three overall strategic priorities: modernizing its asset management business; expanding its wealth management platform; and globalizing the firm. Alternatives are playing an increasingly important role in CI’s wealth management business, given the relevance of these strategies for high-net-worth and ultra-high-net-worth clients.
“Institutional investors such as pension plans, endowments and foundations are increasingly focused on achieving returns based on their investors’ long-term objectives,” Mr. MacAlpine said. “We are seeing the same trend with our high-net-worth clients, who are shifting their attention to longer-term wealth preservation and inter-generational planning.
“As one of Canada’s largest wealth managers for high net worth individuals, families and businesses, we are taking the lead in providing institutional-style investment mandates to meet our clients’ evolving needs. In offering private market solutions, we are building on the leadership we’ve established in liquid alternative funds, where we have $1.3 billion in assets under management and are one of the top two managers in this category.”
Private market investments are investments in entities that are not publicly listed or traded and are typically restricted to large institutional investors. Private market investments are considered “illiquid,” which means they are not easily sold. However, the illiquidity justifies a targeted return premium over public market investments. Liquid alternative funds combine sophisticated investment strategies with the liquidity – daily sales and purchases – and low investment minimums of a mutual fund structure.
CI’s liquid alternative funds are:
• CI Munro Alternative Global Growth Fund and CI Munro Alternative Global Growth ETF
• CI Marret Alternative Absolute Return Bond Fund and CI Marret Alternative Absolute Return Bond ETF
• CI Lawrence Park Alternative Investment Grade Credit Fund and CI Lawrence Park Alternative Investment Grade Credit ETF.
About CI Financial
CI Financial Corp. (TSX: CIX) is an independent Canadian company offering global asset management and wealth management advisory services. CI held approximately C$156 billion in fee-earning assets as of March 31, 2020. Its primary operating businesses are CI Investments Inc., Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, GSFM Pty Ltd., WealthBar Financial Services Inc., and BBS Securities Inc. Further information is available at www.cifinancial.com.