CI Global Asset Management Introduces Enhancements to Private Markets Funds
CI Global Asset Management (“CI GAM”) is thrilled to announce substantial improvements to its private markets funds, designed to enhance accessibility and transparency for investors. These recent updates include making the funds eligible for registered plans and eliminating the lock-up period, representing a significant change in investment opportunities.
Enhancing Access Through Fund Structure
The CI Private Markets Growth Fund and CI Private Markets Income Fund are structured as fund-of-funds. This framework allows accredited investors to access lucrative opportunities within the global private markets. Following recent approvals from unitholders, CI GAM expects that the units of these funds will soon qualify as investments for registered plans.
Elimination of Lock-Up Periods
Previously, these funds had a lock-up period of one year, but after careful consideration, this requirement has been completely removed. This change grants investors greater freedom to access their funds as their financial situations change. The removal of the lock-up period underscores CI GAM's dedication to enhancing the investor experience.
Prioritizing Investor Benefits
Marc-André Lewis, President and Chief Investment Officer of CI GAM, emphasized the advantages of private markets, noting that these funds were designed to provide convenient and accessible investment solutions. By increasing flexibility, CI GAM opens the door for a wider range of investors to engage with these asset classes.
Impact of Growing Assets Under Management
With approximately $1.8 billion in assets under management, CI GAM is well-equipped to implement these positive changes. The size of the funds provides the necessary liquidity to eliminate the lock-up period and create more investment opportunities.
Tackling Barriers for Individual Investors
Lewis pointed out that while sophisticated institutional investors often allocate significant portions of their portfolios to private markets, individual Canadian investors tend to fall behind. High minimum investment requirements and the difficulty of identifying suitable funds and managers can discourage participation. CI GAM aims to break down these barriers by offering professionally managed, diversified portfolios.
Improved Transparency in Fees
To provide clarity regarding fees, CI GAM has set a cap on the maximum all-in management fees for Series F units. This strategy ensures that even if there are fluctuations in the underlying fund management fees, investors will not face unexpected increases in costs. The management fee for the CI Private Markets Income Fund is 0.65%, while the CI Private Markets Growth Fund is set at 0.80%.
Quarterly Distributions for Investors
Starting in the first quarter of the upcoming year, both funds will implement quarterly distributions of net income. This systematic distribution approach is appealing for investors seeking regular returns. Payments will be made to eligible unitholders, aiming to provide consistent income streams.
A Wider Range of Alternative Investment Managers
The open architecture of the funds allows CI GAM to collaborate with a diverse array of leading alternative investment managers. Since the inception of the fund, CI GAM has significantly broadened its selection of underlying strategies, including well-known firms like Adams Street Partners and Apollo Global Management.
Investment Categories
The CI Private Markets Growth Fund primarily invests in private equity and venture capital, while the CI Private Markets Income Fund focuses on private credit and real estate. This combination of investment categories offers a robust strategy for investors in the private markets.
About CI Global Asset Management
CI Global Asset Management is a leading investment management firm in Canada, offering a comprehensive range of products and services tailored to meet the diverse needs of investors. As a subsidiary of CI Financial Corp. (TSX: CIX), CI GAM is supported by a strong foundation, managing approximately $511.3 billion in assets. This legacy reinforces its commitment to delivering exceptional 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.
