CI Global Asset Management Boosts Private Markets Fund Access

CI Global Asset Management Unveils Enhancements to Private Markets Funds

CI Global Asset Management (“CI GAM”) is excited to share significant enhancements to its private markets funds, aimed at improving access and transparency for investors. The recent changes include the eligibility of these funds for registered plans and the removal of the lock-up period, marking a pivotal shift in investment opportunities.

Transforming Access with Fund Structure

The CI Private Markets Growth Fund and CI Private Markets Income Fund are structured as fund-of-funds. This design allows accredited investors to tap into lucrative investment opportunities within global private markets. With the recent approvals from unitholders, CI GAM anticipates that units of these funds will qualify as investments for registered plans relatively soon.

Removing Lock-Up Periods

Previously, the lock-up period for these funds was set at one year, but after evaluations, it has now been completely eliminated. This flexibility allows investors greater freedom to access their investments as their financial circumstances evolve. The removal of the lock-up period highlights CI GAM's commitment to enhancing investor experiences.

A Focus on Investor Advantages

Marc-André Lewis, President and Chief Investment Officer of CI GAM, expressed his belief in the benefits of private markets, stating that these funds were developed for convenient, accessible investment solutions. By enhancing flexibility, CI GAM allows a broader audience of investors to participate in these asset classes.

Impact of Increased Assets Under Management

With assets under management approximately at $1.8 billion, CI GAM is well-positioned to implement these beneficial changes. The scale of the funds lends the necessary liquidity to remove the lock-up period and create greater investment opportunities.

Addressing Barriers for Individual Investors

Lewis noted that while sophisticated institutional investors often allocate significant portions of their portfolios to private markets, individual Canadian investors lag behind. High investment minimums and the challenge of finding suitable funds and managers can deter participation. CI GAM aims to dismantle these barriers by offering diversified portfolios that are managed professionally.

Greater Transparency in Fees

To ensure investors have clarity regarding fees, CI GAM has capped the maximum all-in management fees for Series F units. This approach ensures that even if variations occur in underlying fund management fees, the investor will not experience unexpected rises in charges. The management fee for CI Private Markets Income Fund stands at 0.65%, while the CI Private Markets Growth Fund is set at 0.80%.

Quarterly Distributions for Investors

Commencing from the first quarter of the forthcoming year, both funds have initiated quarterly distributions of net income. This systematic approach to distribution is an attractive feature for investors looking to see regular returns. Payments will be processed for eligible unitholders and aim to provide steady income streams.

A Broader Array of Alternative Investment Managers

The open architecture of the funds enables CI GAM to engage with a variety of leading alternative investment managers. Since the fund's inception, CI GAM has significantly expanded the roster of underlying strategies, including industry stalwarts like Adams Street Partners and Apollo Global Management.

Investment Categories

The CI Private Markets Growth Fund primarily invests in private equity and venture capital, whereas the CI Private Markets Income Fund focuses on private credit and real estate. The combination of these investment categories provides a robust approach for investors in the private markets.

About CI Global Asset Management

CI Global Asset Management is a prominent investment management entity in Canada, providing an extensive range of products and services to meet the needs of various investors. As a subsidiary of CI Financial Corp. (TSX: CIX), CI GAM is backed by a solid foundation with around $511.3 billion in assets. This legacy further strengthens its commitment to providing exemplary investment services.

Frequently Asked Questions

What are the recent enhancements to the private markets funds?

CI GAM has removed the lock-up period and made the funds eligible for registered plans, improving access for investors.

Who can invest in these private markets funds?

These funds are aimed at accredited investors and have been structured to offer diversified investment opportunities.

What is the benefit of removing the lock-up period?

The removal allows investors more flexibility in accessing their investments, making it easier to adapt to changing financial circumstances.

How do the management fees work for these funds?

Management fees are capped, meaning investors have predictable costs, ensuring no unexpected rises in fees occur.

What types of investments do the funds cover?

The CI Private Markets Growth Fund focuses on private equity and venture capital, while the Income Fund emphasizes private credit and real estate.

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