Great-West Lifeco and Mackenzie Financial Corporation, a subsidiary of IGM Financial, are acquiring a non-controlling interest in Northleaf Capital Partners, a Toronto-headquartered private equity, private credit, and infrastructure fund manager with $17 billion CAD in assets under management.
Mackenzie and Lifeco have committed at least $700 million for Northleaf over the next 18 to 24 months.
Both IGM Financial and Great-West Lifeco are member companies of Montreal-headquartered Power Corporation, whose other subsidiaries include FinTech investor Portag3 Ventures. IGM Financial and Great-West Lifeco both invested in Portag3’s $427 million global FinTech fund.
Under an agreement signed by the three companies, Mackenzie and Lifeco will acquire a 49.9 percent non-controlling voting interest and a 70 percent economic interest in Northleaf. The acquisition vehicle is 80 percent owned by Mackenzie and 20 percent owned by Lifeco.
The agreement includes a payment of $245 million CAD, and Mackenzie and Lifeco jointly have committed to invest a minimum of $700 million CAD over the next 18 to 24 months across a number of Northleaf’s product offerings, with additional capital commitments expected over time.
With $17 billion CAD in assets under management, Northleaf’s portfolio includes more than 400 active investments in 35 countries, with a focus on mid-market companies and assets. The firm has a 150-person team, located in offices around the world.
Following the agreement, Northleaf’s senior leadership will maintain a 50.1 percent voting interest, and the firm will remain employee-controlled and operationally independent. There will also be no change in Northleaf’s investment decision making or activities. The deal is expected to close in the fourth quarter of 2020.
The deal with Northleaf is intended to expand Mackenzie’s ability to offer global private equity, private credit, and infrastructure investment solutions through its advisory channels and financial institution partners. The deal is also intended to advances Lifeco’s strategy to expand alternative investments and increase customer access to private markets solutions.
Image source Northleaf Capital.