Mackenzie Financial, a subsidiary of IGM Financial, is joining with Great-West Life to acquire a non-controlling interest in Northleaf Capital Partners, the companies have announced.
The agreement will take place via an acquisition vehicle 80% owned by Mackenzie and 20% owned by Great-West, which the companies say will provide a significant presence in the large and rapidly growing private markets investment industry.
Would expand Mackenzie capabilities
The agreement would expand Mackenzie's capabilities to offer global private equity, private credit and infrastructure investment solutions through its retail advisory channels and financial institution distribution partners.
The companies said the agreement also enhances portfolio construction at IG Wealth Management, building on long-standing capabilities of incorporating private asset classes into client portfolios, with an emphasis on high-net worth and mass affluent client segments.
For Great West, the deal is said to advance its strategy to expand alternative investments both for its balance sheet and also to increase customer access to private markets solutions across its global distribution channels.
Northleaf to get access to distribution
Northleaf will speed up its growth strategy via the agreement by providing additional access to balance sheet capital, global relationships and best-in-class retail product development and distribution.
Toronto-based Northleaf has more than 150 employees across seven offices in Canada, the U.S., UK and Australia with C$17 billion in assets under management.
IGM and Great-West have committed to invest together a minimum of C$700 million in the next 18 to 24 months across a number of Northleaf's product offerings. Northleaf's senior leadership will maintain a 50.1% voting interest in the firm, which will remain employee-controlled and operationally independent.
IGM and Great-West are both members of the Power Group of Companies.
