Diversified private markets investment solutions
Our clients have access to diversified private markets solutions built for Harbourfront. Each multi-manager, multi-strategy investment pool provides access to institutional-quality global investment managers, often not available to retail investors.
Our expertise extends to a wide range of private asset classes:
Private debt is broadly defined as non-bank loans to private companies. Private debt loans are directly negotiated with borrowers and usually offer greater flexibility than bank loans, allowing the lenders to charge higher interest rates. In addition, the ability to provide investors with more senior secured positions in the capital structure has made private lending an attractive option for providing downside protection and increasing diversification.
Benefits:
- Higher return potential due to customization
- Credit protections to enhance capital preservation
Private equity involves buying an ownership stake in companies that are not publicly traded. About 99% of midsize organizations are not traded on listed equity markets1, providing a much wider opportunity set, not typically available through public markets.
Investment in private companies can be accomplished directly, through co-investment, or through secondary markets often at a great discount. This means more diversification and more opportunity for investors.
Benefits:
- Expanded universe of investment opportunities
- Higher return potential due to potential market inefficiencies
Private real estate focuses on income-generating properties across a wide range of assets from industrial, storage, multifamily housing to office, hotel, student housing and retail. More than 90% of commercial real estate is privately owned2 and historically these assets have only been available to large institutional investors such as pensions and endowment funds.
Benefits:
- Consistent inflation protected income
- Increased portfolio diversification due to low correlation with traditional asset classes
Private Infrastructure provides access to investments in physical assets that underpin the global economy such as roads, utilities, power plants, and telecommunication networks or data centres.
Benefits:
- Stable inflation protected income, often backed by long-term contracted or regulated revenues
- Increased portfolio diversification due to low correlation with traditional asset classes
Benefits of our multi-manager, multi-strategy approach
Diversification: Allocation across multiple strategies can provide exposure to different asset classes, sectors, geography and managers, reducing concentration risk and providing diversified sources of returns
Access: Access to institutional investment managers and strategies that may not be available to retail investors
Simplicity: Professionally managed, diversified exposure through a single allocation, with specialized due diligence in strategy selection and monitoring
Our Portfolio Management Team employs extensive due diligence and manager screening to identify managers best positioned to meet investment objectives. Our ongoing monitoring and oversight ensure continued suitability of each strategy.
A Note on Risks:
While providing various important benefits, private investments also carry some additional risks, which could be different from the risks associated with investing in public markets. It is important for investors to work with financial professionals who understand private markets and are able to make active investment decisions.
- Market risk – Private market investors may experience differentiated market risk compared to public market investments. Private companies are subject to different disclosure requirements and are sensitive to a variety of factors that may impact valuations differently than public markets.
- Liquidity risk – Private markets funds have varying liquidity profiles, often allowing liquidity on a monthly, quarterly, or less frequent basis. It is important for investors to understand the liquidity characteristics of private market investments before investing.
Harbourfront Wealth advisors use our best-in-class thinking to uniquely structure pools of private securities using an institutional approach. Structured pools are available to accredited investors through registered portfolio managers through Harbourfront Wealth’s affiliated Investment Fund Manager, Willoughby Asset Management Inc.
1. https://www.mercer.com/en-ca/solutions/investments/alternatives/private-equity/
2. Blackstone University Essentials: Private Real Estate. https://www.blackstone.com/pws/essentials-of-private-real-estate/
~ Danny Popescu, CEO Harbourfront