Mackenzie Investments has partnered with Northleaf Capital Partners to launch a new private credit fund for accredited investors.
The Mackenzie Northleaf Private Credit Fund offers investors exposure to senior secured floating rate loans to global mid-market private companies. These loans offer higher income and enhanced lender protections compared to public market debt, according to a release.
The new fund has a minimum investment of $25,000 and is open to monthly purchases and quarterly redemptions. Mackenzie’s release said there is “no hard investor lockup” for the new fund, but units redeemed within one year are subject to an early redemption fee of 2%.
In a statement, Michael Schnitman, senior vice-president and head of alternative investments with Mackenzie, said investors are looking for “new ways to secure more attractive yields” in today’s historically low interest rate environment.
“We believe that private credit, especially middle market lending, offers an attractive alternative,” Schnitman said.
This marks Mackenzie’s first collaboration with Northleaf, an institutional private markets investment manager with more than US$15 billion in committed capital. Mackenzie announced it had entered into a strategic partnership with Northleaf last September.