TORONTO--(BUSINESS WIRE)--CI Global Asset Management (“CI GAM”) announces a new investment solution designed to deliver the benefits of private markets investing to individual investors.
CI GAM is using a fund-of-funds structure to provide investors with diversified exposure to a variety of private markets asset classes and best-in-class alternative asset managers through a simple one-ticket solution. Asset classes include venture capital and private equity, credit, infrastructure and real estate.
“This new strategy addresses a significant need in the Canadian market by providing individual investors with the opportunity to gain exposure to private markets,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., CI GAM’s parent company. “The most sophisticated Canadian institutional investors allocate 30-40% of their portfolios to private markets, while allocations by retail investors are typically zero. This disconnect is not due to private markets being good for one segment of investors and not another; it’s entirely driven by awareness, access and complexity – all three of which are solved in our new strategy.”
“Private markets offer the potential for improved risk-adjusted returns, higher yields, and lower realized volatility compared with public markets,” said Marc-André Lewis, Executive Vice-President and Chief Investment Officer of CI GAM. “In addition to offering multi-manager, multi-asset class exposure to private markets, our solution benefits from CI GAM’s expertise in asset allocation – managing the allocations between managers and funds – and our ability to offer attractive overall pricing, thanks to our size and scale.”
With this new mandate, CI GAM is building on its experience in private markets solutions, including managing liquidity risks associated with these investments. The new solution leverages CI’s existing relationships with three established private markets investment firms – Adams Street Partners, CBRE Global Investment Partners, and HarbourVest Partners – and will include other global investment managers.
CI GAM’s new private markets strategy is now open to investments by other CI GAM funds as part of their less-liquid portfolio sleeve, where appropriate. It is expected to be made available to accredited investors later this year.
Private markets investments are those made in entities that are not publicly listed or traded. Asset classes include private equity (taking an ownership stake in a private company), private credit (issuing loans or otherwise investing in the debt of a private company) and venture capital (investments in startups or other emerging businesses). In addition, infrastructure and real estate are considered distinct asset classes within private markets because of their attractive characteristics, including holding real assets and the potential for generating consistent, lower-risk, long-term cash flows.
Providing expanded access to private markets is part of CI GAM’s strategy of building out a robust lineup of alternative investments, offering advisors and investors valuable new tools to help them meet their investment objectives in today’s challenging markets. CI GAM also manages a diverse lineup of seven liquid alternatives mandates with approximately $3.3 billion in total assets (as at December 31, 2022).
Certain investment solutions offered by CI GAM, including the new multi-manager, multi-asset class solution, are made in reliance on exemptions from the prospectus requirement in Canada, including where investments are made by accredited investors who meet minimum investment thresholds and other qualifying criteria, through registered dealers.
About CI Global Asset Management
CI Global Asset Management is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI Global Asset Management is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $375.8 billion in assets as of December 31, 2022.
This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.
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Adams Street Partners, LLC., CBRE Global Investors, and HarbourVest Partners L.P. are portfolio sub-advisors to certain funds offered and managed by CI Global Asset Management.
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