CI GAM removes lock-up period, adds registered plan eligibility, and caps fees for private funds
CI Global Asset Management (CI GAM) has announced significant enhancements to its private markets funds, including the removal of the lock-up period and eligibility for registered plans.
The CI Private Markets Growth Fund and CI Private Markets Income Fund offer accredited investors access to global private markets through a fund-of-funds structure.
On September 5, unitholders approved changes that will qualify units of the funds as investments for registered plans starting in October. Additionally, the one-year lock-up period, which was previously reduced from three years in June, has been eliminated.
Recent updates include capping the maximum all-in management fee for Series F units, the introduction of quarterly distributions, and expanded access to leading alternative investment managers.
Marc-André Lewis, president and chief investment officer of CI GAM and Co-Lead Portfolio Manager of the funds, explained, “We firmly believe that an allocation to private markets can benefit individual investors, and we developed our funds to provide Canadians with convenient, one-ticket access to these asset classes.”
He added that these changes enhance the benefits and flexibility of their solutions and make them more accessible to a broader group of investors.
With combined assets under management of $1.8bn as of July 31, the funds can now provide greater liquidity and additional redemption options, removing the need for a lock-up period, which is typical in private markets investing. These changes apply to both current and future unitholders.
The funds are expected to become qualified investments for various registered plans, including registered retirement savings plans, registered retirement income funds, and tax-free savings accounts, among others.
CI GAM has also capped the all-in maximum management fees for Series F units. The Series F management fee for the CI Private Markets Income Fund is 0.65 percent, and for the CI Private Markets Growth Fund, it is 0.80 percent.
The capped all-in maximum fees are 1.53 percent and 1.63 percent, respectively.
Quarterly distributions of net income began in 2024, with the first distribution made in July to unitholders of record as of December 31, 2023.
Future distributions will follow this pattern, with the fourth quarter distribution consisting of income and capital gains, if any, and treated as a notional distribution.
CI GAM’s open architecture allows for active management of allocations to alternative asset classes and investment managers, with a diversified selection of underlying funds.
Since launching last year, CI GAM has expanded the number of strategies and managers, which now include Adams Street Partners, Apollo Global Management, Ardian, Monarch Alternative Capital, and others.
The funds primarily invest in private equity, venture capital, private real estate, and private infrastructure for the CI Private Markets Growth Fund, and private credit, private real estate, private infrastructure, and private equity with the characteristics of preferred shares for the CI Private Markets Income Fund.
