A diversification drive
This recognition was not in isolation but mirrored a broader trend observed across the institutional investment sphere in Canada, where giants like CPP and AIMCO were increasingly allocating substantial portions of their portfolios to private assets.
The persistent tightening of credit conditions, further intensified by recent disturbances in the banking sector, is increasingly pushing borrowers to seek alternatives in private credit markets.
The shift towards private equity, credit, real estate, and venture capital represented a strategic endeavor to unlock new avenues of growth and diversification, not just for CI GAM but also for its clients.
Designing new products, securing regulatory approvals, and building the infrastructure to support these investments took considerable effort and time. Lewis describes this transition as, “A lengthy journey. The bulk of the past year to year and a half was devoted to developing and starting to invest in these products. Now, we are in a position to offer them to a broader audience.
“This has evolved into a comprehensive range of asset classes, previously inaccessible to investors in the unlisted space. From a diversification standpoint, it makes considerable sense for us to broaden our business offerings and for our clients to diversify their portfolios by incorporating private assets alongside what we have been doing in the listed space.”
