For retail investors, Mackenzie Northleaf Private Credit Fund combines several attractive features. To overcome traditional barriers to private credit investing, the fund comes with a minimum investment of $ 25,000, monthly purchases, quarterly redemptions, and no forced investor lock-ups. It also provides access to a carefully maintained selection of senior secured variable rate loans to mid-sized global private companies, which were historically available primarily to institutional investors.
“Since the 2008 financial crisis, regulatory policies have limited banks’ approaches to financing midsize businesses, prompting alternative lenders to fill this void,” said Schnitman.
By offering differentiated exposure to direct lending transactions, he said the fund offers the potential for higher new issue returns, lower historical default and loss rates compared to high yield bonds and heavily syndicated loans, and increased diversification with access to the growing universe of the private sector. companies owned.
The fund is managed by Mackenzie’s fixed income team in partnership with Northleaf Capital Partners, with the majority of its capital invested in Northleaf’s senior secured private loan program for institutional investors. This is the first collaboration between Mackenzie and Northleaf since they announced a strategic partnership in September of last year.
“Northleaf’s senior private credit strategy is distinguished by its geographic mix between Europe and North America, its relative value approach, its sourcing of private equity sponsored contracts and its focus on senior investments and unitranche, ”Schnitman said. “Northleaf applies its proprietary portfolio construction and risk management process to ensure that the portfolio creates meaningful diversification across holdings, sectors and geographies.”