Mackenzie Investments has launched the Mackenzie Northleaf Private Credit Fund to provide retail investors with access to private lending opportunities. The fund is managed by Mackenzie’s fixed income team in partnership with Northleaf Capital Partners. Last year, Mackenzie and other Power Corp affiliates acquired a 49.9 percent stake in Northleaf for C$245 million.
TORONTO, March 11, 2021 /CNW/ – As part of its ongoing commitment to make alternative investments more accessible to retail investors, Mackenzie Investments (“Mackenzie”) today announced the launch of Mackenzie Northleaf Private Credit Fund (“the Fund”).
The Fund is managed by Mackenzie’s Fixed Income Team in partnership with Northleaf Capital Partners (“Northleaf”). It targets to invest a majority of its capital in Northleaf’s senior secured private lending program for institutional investors. This enables the Fund to provide accredited retail investors with the opportunity to achieve higher income with enhanced lender protections as compared to investments in the public debt markets.
The Fund generally provides quarterly redemptions on 30 days’ notice. Units redeemed within one year are subject to an early redemption fee of 2%. 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 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.
The Fund manages the capital commitments and all capital calls to further simplify access for investors and facilitates liquidity by tactically incorporating Mackenzie’s active high yield and floating rate income ETFs.
“With traditional fixed income investments offering historically low rates, many investors are looking for new ways to secure more attractive yields, while still maintaining acceptable risk levels,” said Michael Schnitman, Senior VP and Head of Alternative Investments, Mackenzie Investments. “We believe that private credit, especially middle market lending, offers an attractive alternative.”
Mr. Schnitman noted that the new fund’s strategy is to provide differentiated exposure to direct lending transactions, thus offering investors the potential for increased yield, lower historical default and loss rates (as compared to broadly syndicated loans and high yield bonds), access to the growing universe of privately held companies and increased diversification.
The launch of this Fund marks the first collaboration between Mackenzie and Northleaf, a leading global institutional private markets investment manager with more than US$15 billion in committed capital, following a strategic partnership announced in September 2020.
“We’re thrilled to be working with Northleaf to provide investors with increased access to private markets alternatives,” said Mr. Schnitman. “They have the specialized expertise and deep global network of sourcing relationships required to identify and evaluate extremely attractive lending opportunities.”
This is Mackenzie Investments’ seventh fund offering in the alternatives space since it launched Canada’s first absolute return fund publicly offered to retail investors in May 2018. Mackenzie is well positioned to capitalize on the growth of alternatives with its Accessible AlternativesTM approach, which aims to help investors better understand and embed alternative strategies into their portfolios.
The Mackenzie Northleaf Private Credit Fund is now available for sale to accredited investors.
About Mackenzie Investments
Mackenzie Investments (“Mackenzie”) is a leading investment management firm with approximately $187 billion in assets under management as of February 28, 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.