{"id":438327,"date":"2022-01-27T11:34:42","date_gmt":"2022-01-27T16:34:42","guid":{"rendered":"https:\/\/www.investmentexecutive.com\/?p=438327"},"modified":"2022-01-27T11:34:42","modified_gmt":"2022-01-27T16:34:42","slug":"mackenzie-introduces-interval-private-credit-fund","status":"publish","type":"post","link":"https:\/\/www.investmentexecutive.com\/news\/products\/mackenzie-introduces-interval-private-credit-fund\/","title":{"rendered":"Mackenzie introduces interval private credit fund"},"content":{"rendered":"

Mackenzie Investments launched a new private credit fund for retail investors that uses an interval structure to allow for quarterly redemptions.<\/p>\n

The Mackenzie Northleaf Private Credit Interval Fund is different from other private investment funds in that it will allow quarterly redemptions of up to 5% of the fund’s assets.<\/p>\n

“This provides retail investors with a new way to access illiquid private credit investment strategies that have traditionally been reserved for accredited and institutional investors and typically feature significant minimum investment requirements,” the release said.<\/p>\n

The minimum initial investment is $5,000.<\/p>\n

Mackenzie partnered with Toronto-based Northleaf Capital Partners Ltd.<\/a>, a private investment fund manager, in 2020. Last year Mackenzie launched private credit<\/a> and private infrastructure<\/a> funds with Northleaf.<\/p>\n

While those funds had no “hard” lockup, investors who redeemed within a given period paid an early redemption fee. The minimum investment for those funds was also higher, at $25,000.<\/p>\n

The interval fund doesn’t have a lockup period, but the 5% limit on quarterly redemptions means investors may not be able to redeem the desired amount in any given quarter, the fund facts document said.<\/p>\n

The fund combines exposure to private credit funds and fixed-income ETFs. Investors will get exposure to floating-rate loans to mid-market private companies through Northleaf’s private credit funds for institutional investors. Between 35% and 65% of assets will be invested in these illiquid securities, according to the fund facts document.<\/p>\n

The rest will be invested in Mackenzie fixed-income ETFs, providing liquidity.<\/p>\n

The fund’s risk rating is medium, and it’s intended as a long-term investment for clients comfortable with limited liquidity.<\/p>\n

“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,” said Michael Schnitman, Mackenzie’s head of alternatives, in the release.<\/p>\n

The management fee is 2.25% for Series A, and 1.25% for Series F. The interval fund is Mackenzie’s ninth alternative fund.<\/p>\n

Last summer Mackenzie president and CEO Barry McInerney said the firm was looking to make alternatives more accessible to retail investors<\/a>.<\/p>\n

\u201c[Some institutional funds] allocate 40%\u201350% of their portfolios into private alternatives,” McInerney said. “Now, that might be too much for an individual investor given liquidity needs, but why is it 0% for individual investors and 50% for the institutional investor?\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The new fund doesn’t have a lockup period, but there’s a limit to quarterly redemptions<\/p>\n","protected":false},"author":145539,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2312,2315],"tags":[2681,87171],"yst_prominent_words":[91273,101888,101887,101886,101885,101884,101883,101882,101881,101880,101879,101878,101877,91272,91269,68011,14402,7004,4996,4028],"acf":[],"_links":{"self":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/438327"}],"collection":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/users\/145539"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/comments?post=438327"}],"version-history":[{"count":1,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/438327\/revisions"}],"predecessor-version":[{"id":438328,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/posts\/438327\/revisions\/438328"}],"wp:attachment":[{"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/media?parent=438327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/categories?post=438327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/tags?post=438327"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.investmentexecutive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=438327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}