Scotiabank Global Wealth Management and Sun Life Capital (SLC) Management plan to develop and offer private asset solutions to high-net-worth clients in the Canadian market through Scotia Global Asset Management.
In line with the partnership, Sun Life Capital will invest $100m of seed capital for future funding opportunities.
Scotiabank global wealth management group head Glen Gowland said: “Once the domain of the most sophisticated institutional investors, private alternative investments have been increasingly sought after for their important role in enhancing portfolio diversification and risk-adjusted returns.
“Through this strategic relationship with SLC Management, we are pleased to extend our Scotia Private Asset Platform to deliver institutional-quality alternative strategies, paired with comprehensive wealth advice to meet the wide-ranging needs of our clients.”
Through the collaboration with Sun Life Capital, Scotiabank Global Wealth aims to utilise the former’s affiliate investment managers to address the rising demand for private assets among institutional and high-net-worth investors in Canada.
The affiliates include BGO, InfraRed Capital Partners, Crescent Capital Group, and Advisors Asset Management.
BGO is a real estate investment management advisor which offers real estate services. The firm manages $83bn of assets under management for more than 750 institutional clients.
Credit investment manager Crescent Capital has assets and commitments under management of nearly $40bn.
InfraRed Capital Partners manages equity capital in multiple private and listed funds, mainly for institutional investors around the world. As of 30 June 2023, it had more than $14bn of infrastructure equity under management.
SLC Management president Steve Peacher said: “We are seeing an increase in the demand for alternatives from Canadian investors as they look to add new sources of yield and total return.
“We’re delighted to be partnering with Scotia Global Asset Management, which will allow us to extend our set of world-class alternative investment capabilities to new clients and expands the roster of investment solutions that Scotiabank can offer to the Canadian wealth management market.”
