Mackenzie Northleaf Private Credit Interval Fund offers improved execution with minimum risk
Doubling down on its commitment to expand access to alternative investments, Mackenzie Investments has announced the launch of Mackenzie Northleaf Private Credit Interval Fund, a first-of-its-kind retail fund in Canada, in partnership with Northleaf Capital Partners.
The Fund is structured as an interval fund, allowing for restricted redemptions at quarterly intervals. This opens a new channel for ordinary investors to have access to illiquid private credit investment strategies that were previously only available to accredited and institutional investors and had high minimum investment restrictions.
"We're thrilled to pioneer this innovative investment solution for Canadian investors," Michael Schnitman, Head of Alternatives at Mackenzie Investments, said in a statement. "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 makes it an ideal solution for retail investors, with 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.
Through Northleaf's open-end, senior secured private credit (levered and unlevered) funds for institutional investors, the fund will offer exposure to a diversified, global portfolio of senior secured floating rate loans to mid-market private companies. It will also tactically incorporate Mackenzie fixed income ETFs in order to facilitate liquidity.
“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," Schnitman said.
Mackenzie has introduced nine alternative mutual funds since May 2018, when it introduced Canada's first publicly traded alternative mutual fund for individual investors.
