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Mackenzie partners with Northleaf in retail private debt fund

IGM Financial’s Mackenzie Investments has launched Mackenzie Northleaf Private Credit Interval Fund, a retail offering, in partnership with Northleaf Capital Partners.

IGM Financial’s Mackenzie Investments has launched Mackenzie Northleaf Private Credit Interval Fund, a retail offering, in partnership with Northleaf Capital Partners. The fund aims to create access for Canadian retail investors to private credit opportunities. It uses an interval structure which allows for limited redemptions at quarterly intervals. The minimum initial investment is $5,000.

PRESS RELEASE

TORONTO, Jan. 27, 2022 /CNW/ – As part of its ongoing commitment to democratize alternative investments in Canada, Mackenzie Investments (“Mackenzie”) today announced the launch of Mackenzie Northleaf Private Credit Interval Fund (the “Fund”), a first-of-its-kind retail offering in Canada, in partnership with Northleaf Capital Partners (“Northleaf”). The unique structure of the Fund delivers unprecedented access for Canadian retail investors to institutional private credit investments and offers the potential to enhance the performance of balanced and fixed income portfolios, while reducing risk and volatility.

The Fund uses an interval fund structure which allows for limited redemptions at quarterly intervals. This provides retail investors with a new way to access illiquid private credit investment strategies that have traditionally been reserved for accredited and institutional investors and typically feature significant minimum investment requirements.

“We’re thrilled to pioneer this innovative investment solution for Canadian investors,” said Michael Schnitman, Head of Alternatives, Mackenzie Investments. “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.”

The Fund’s structure represents a unique offering to retail investors and includes the following features:
quarterly repurchase offers (redemptions) up to a maximum of five per cent of the Fund’s assets;
weekly valuations;
monthly subscription frequency;
a $5,000 initial investment minimum; and
no lock-up period which would restrict quarterly redemptions.

The Fund will provide exposure to a diversified, global portfolio of senior secured floating rate loans to mid-market private companies through Northleaf’s open-end, senior secured private credit (levered and unlevered) funds for institutional investors, while facilitating liquidity by tactically incorporating Mackenzie fixed income ETFs.

“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,” concluded Mr. Schnitman.

This is Mackenzie’s ninth fund offering in the alternatives space since it launched Canada’s first alternative mutual fund publicly offered to retail investors in May 2018. Mackenzie is well positioned to capitalize on the growth of alternatives with its Accessible Alternatives™ approach, which aims to help investors better understand and embed alternative strategies into their portfolios.

For more information about Mackenzie Investments and their funds, please visit mackenzieinvestments.com.

About Mackenzie Investments
Mackenzie Investments is a leading investment management firm with $210.3 billion in assets under management as of December 31, 2021. 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.