Mackenzie launches private infrastructure fund

Toronto-based Mackenzie Investments has launched a new fund that invests in conservatively positioned infrastructure projects such as wind farms, fibre networks and toll roads.

The Mackenzie Northleaf Private Infrastructure Fund — created with Northleaf Capital Partners, a Toronto-based global private markets investment firm — seeks capital appreciation and income through infrastructure projects across developed countries, a release from Mackenzie said. The fund invests in Northleaf infrastructure funds and assets.

The fund has a minimum investment of $25,000 and is open to monthly purchases and annual redemptions. It also has quarterly distributions. In the release, Mackenzie said there is “no hard investor lockup” for the new fund, but units redeemed within three years are subject to an early redemption fee of 5%.

“Retail investors and advisors are seeking to broaden their investment opportunity sets, and private markets can offer attractive portfolio solutions,” said Michael Schnitman, head of alternative investments at Mackenzie.

“This new offering leverages the collective expertise of our partners at Northleaf to provide investors with the unique diversification and potential long-term return benefits of investing in private infrastructure projects, which continue to be difficult to access through public markets.”

The fund is the second collaboration between Mackenzie and Northleaf. Earlier this year, the firms launched the Mackenzie Northleaf Private Credit Fund, offering investors exposure to senior secured floating rate loans to international mid-market private companies.

The private infrastructure fund — Mackenzie’s eighth alternative fund — is available to accredited investors.

The Series A version of the fund has a 2.55% management fee (including a 1% trailer). The Series F version has a 1.55% management fee. There’s a performance fee on the underlying funds of 15% on the illiquid portion with a 7% hurdle rate.

Correction: A previous version of this story listed the trailer fee as separate from the management fee.

Staff

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