Canadian asset manager Mackenzie launches private credit fund for retail investors
Canadian investment management group Mackenzie Investments has launched a private credit fund aimed at retail investors.
Investors can invest starting from C$5,000 (£2,922) in the Mackenzie Northleaf Private Credit Interval Fund , which has a monthly subscription frequency.
The strategy, created in partnership with private markets group Northleaf Capital Partners, invests in Northleaf’s senior secured private credit funds and Mackenzie’s fixed income ETFs. This way, the fund is able to provide liquidity to clients who may want to pull their money out.
The fund has a quarterly redemption window, allowing up to five per cent of the fund’s assets to be redeemed at one time.
“We believe the Mackenzie Northleaf Private Credit Interval Fund will appeal to long-term investors who are seeking to diversify their portfolios with non-traditional asset classes that have the potential for above average yields from private senior secured loans,” said Michael Schnitman, head of alternatives at Mackenzie Investments.
He added: “Our team of alternative investment experts has worked closely with Northleaf, a global leader in private markets investments, to make alternatives more accessible and offer Canadians new and innovative ways to grow their portfolios and meet their investment goals.”
The fund is currently available for Canadian residents and if quarterly redemptions reach 5 per cent of more of the strategy’s net asset value, there maybe a fund-level gate, according to documents published on Mackenzie’s website.
Mackenzie is one of Canada’s largest asset managers, with C$210.3bn in assets under management. The private credit fund is the firm’s ninth strategy investing in alternatives.
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Private debt has become more popular in recent years and investors have been searching for higher income-paying investments. Assets have risen to $1.21tn, according to data provider Preqin, which expects AUM to reach $2.69tn (£2bn) by 2026.
While private debt funds, like much of the private markets, have been typically available only to institutional investors, firms have recently been opening up their strategies to individual investors as well. Structures like the interval fund, which Mackenzie has used, allow the so-called ‘democratisation’ of private assets.
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