On Friday, BMO Financial Group’s asset management division announced a significant collaboration with the U.S.-based private equity titan, Carlyle Group, marking a strategic move to expand Canadian investors’ access to the lucrative private markets.
Canada’s BMO Launches New Investment Fund With Carlyle Group
The initiative is part of BMO Global Asset Management’s broader strategy to democratise investment in private markets, which have historically been the domain of large institutional players.
Engaging with private equity firms like Carlyle, known for their profound expertise in the private sector, is a tactic increasingly employed by companies aiming to enhance their investment portfolios.
Private equity investments allow investors to participate in the growth of non-public companies. They often yield higher returns than public market investments, making them particularly appealing in times of economic flux.
Based in Toronto, BMO has outlined its partnership with Carlyle, a behemoth managing $426 billion in assets as of the end of 2023, as a gateway for investors to delve into a diversified global private equity portfolio.
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The collaboration will materialize by introducing a fund slated for release this spring, concentrating on secondary investments—buying private assets from existing investors—and exploring other potential investment avenues.
BMO highlights that this forthcoming fund will be characterised by its accessibility, offering monthly subscriptions and requiring minimal initial investments.
The move follows BMO’s previous venture last year with Partners Group, a Swiss investment manager, to launch a fund focusing on infrastructure, real estate, private credit, and private equity. This venture underscored BMO’s commitment to broadening private market investor horizons.
