Toronto — Russell Investments Canada Limited (“Russell Investments”) today announced that it is introducing access to the Russell Investments Global Unlisted Infrastructure Fund S.C.A., SICAV-RAIF (the “Underlying Fund”), a global unlisted infrastructure fund to eligible Canadian accredited investors through a partnership with iCapital Network Canda Ltd.(“iCapital Canada)1, the global fintech platform driving access to alternative investments for the wealth and management industries. This offering will allow eligible Canadian accredited investors to gain access to the Underlying Fund through the Russell Investments iCapital Global Unlisted Infrastructure Fund L.P. (the “Access Fund”), managed by iCapital Canada. The Access Fund will invest 85-90% in the established Underlying Fund and 10-15% in liquid investment such as a high interest savings account to satisfy redemption requirements.
“We see strong demand for private markets solutions from high-net-worth and institutional investors to help meet their long-term goals, particularly for products that offer access to what has traditionally been a fairly limited marketplace,” said Michael Steingold, Director, Private Markets at Russell Investments. “We are very excited to introduce an open-ended unlisted infrastructure fund in Canada in partnership with iCapital that provides eligible Canadian accredited investors with access to top-tier investment managers with quarterly subscription options and liquidity access.”
The Access Fund invests in the Underlying Fund which use an actively managed open-architecture approach to invest in assets worldwide that provide essential services to communities and corporates, which underpin modern economies. The resulting curated portfolio of funds and co-investments creates a single access point to a diversified infrastructure allocation with an attractive gateway to complete diversified infrastructure asset class allocation. Such exposure to specialist fund managers and co-investments in the infrastructure universe is usually hard to find or not accessible to many investors. In addition, the portfolio offers greater liquidity than can be achieved in closed-end funds, with monthly redemption requests.
“We’re thrilled to collaborate with Russell Investments to provide eligible Canadian accredited investors with best-in-class, easy and transparent access to alternatives,” said Tom Johnston, Managing Director, International Client Solutions at iCapital Canada. “Our innovative technology and service offering features seamless and secure end-to-end alternative investing capabilities that include digital fulfillment, administration, document management, reporting and a full suite of educational materials.”
The Underlying Fund is domiciled in Luxembourg and invests in opportunities that address the need for new infrastructure solutions to meet evolving social and economic demands. It currently includes 121 assets across six investment managers, covering all targeted regions and sectors. This diversified allocation positions the Underlying Fund to target returns of G72 Core CPI + 4%. As new funding arrives, Russell Investments will continue to invest in current assets and seek new co-investment opportunities.
Serving as Russell Investments’ portfolio manager for the Underlying Fund, Michael Steingold added, “We see a growing number of opportunities to acquire new assets and carefully select only those that meet the highest standards of our rigorous selection process. In addition to making a positive benefit for society, exposure to new infrastructure projects offers eligible investors access to sustainable sources of income to help them meet their long-term goals.”
About Russell Investments
Russell Investments is a global investment solutions firm providing a wide range of services to institutional investors, financial intermediaries, and individual investors. The firm has C$412.5 billion in assets under management (as of June 30, 2024) for clients in 30 countries. Headquartered in Seattle, Washington, Russell Investments has 16 offices in major financial centres, including London, Paris, Amsterdam, Sydney, Tokyo, Shanghai, New York, Milan, and Dubai.
A longstanding alternatives specialist, Russell Investments has managed private markets portfolios for 40 years. It launched its first open-ended private real estate fund in 1984 and first private infrastructure fund in 2006. The firm manages and advises US$ 114 billion in alternative investments. It currently monitors more than 8,000 private markets products globally.
About iCapital
iCapital powers the world’s alternative investment marketplace, offering a complete suite of tools, end-to-end enterprise solutions, data management and distribution capabilities, and an innovative operating system. iCapital is the trusted technology partner to financial advisors, wealth managers, asset managers, as well as other participants in this ecosystem, and offers unrivaled access, technology, and education to incorporate alternative assets, structured investments, and annuities into the core portfolio strategies for their clients.
At the forefront of the digital transformation in alternative investing, iCapital’s secure platform delivers a complete portfolio of management capabilities for education, transactions, data flows, analytics, and client support throughout the investment lifecycle. With $202 billion+3 in global platform assets, the iCapital operating system automates and streamlines the complex process of private market investing and seamlessly integrates with clients’ existing infrastructure platform and tools.
iCapital employs more than 1,675 people globally and has 17 offices worldwide, including New York, Greenwich, Zurich, Lisbon, London, Hong Kong, Singapore, Tokyo, and Toronto. iCapital has consistently been recognized for its outstanding innovation, fintech industry leadership, and performance, including CNBC World Top Fintech Companies for 2024, and Forbes Fintech 50 for seven consecutive years since 2018.
For more information, visit icapital.com | X (Twitter): @icapitalnetwork | LinkedIn: https://www.linkedin.com/company/icapital-network-inc/
1. A Canadian investment fund manager and an affiliate of the iCapital group of companies (collectively “iCapital”).
2. The Group of Seven (G7) is an inter-governmental political and economic forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
3. September 30, 2024
Important Information
FOR ACCREDITED INVESTORS ONLY
This document or material (this “document”) is directed only to Canadian residents that meet certain eligibility requirements under one of the exemptions from the prospectus requirements under National Instrument 45-106 Prospectus and Registration Exemptions (“NI 45-106”). This document is not, and under no circumstance is to be construed as an offering memorandum (“OM”), an advertisement or a public offering of any securities described herein in any province or territory of Canada. Under no circumstances is this document to be construed as an offer to sell securities or the provision of advice in relation to any securities. Any offer or sale of any securities described in this document will be made pursuant to the OM, which does not include this document. In addition, any offer or sale of, or advice related to, any securities described in this document will be made only by a dealer or adviser registered or relying on an exemption from registration in the applicable province or territory of Canada. No Canadian securities regulatory authority has reviewed or in any way passed upon the information contained in this document or the merits of any securities described in this document, and any representation to the contrary is an offense.
Units of Russell Investments iCapital Global Unlisted Infrastructure Fund L.P. (the “Access Fund” or “Fund”) are generally available to Canadian residents that meet certain eligibility requirements under one of the exemptions from the prospectus requirements under NI 45-106. The offering of Units for the Fund is made pursuant to the Fund’s OM, and only to those investors in jurisdictions of Canada who meet certain eligibility requirements. The OM contains information about the investment objectives and terms and conditions of an investment in the Fund (including fees) and will also contain tax information and risk disclosures that are important to any investment decision regarding the Fund. Please read the Fund’s OM carefully before investing. The OM supersedes the information set forth herein, and investors will have the opportunity to ask questions and receive answers and additional information concerning the terms and conditions of the Fund. No person has been authorized to make any statement concerning the Fund other than as set forth in the OM and, if made, such statements may not be relied upon.
Minimum investment amounts are required for accredited investors considering an investment. An investment in this Fund will involve significant risks, including loss of the entire investment. Investments in private market securities are generally illiquid, as such investments are neither tradable on any exchange or in the secondary market nor would they be transferrable.
An investment in the Fund should be considered only by clients whose financial resources are sufficient to enable them to assume such risk (and possible loss of some or all of their investment) and who have no immediate need for liquidity in their investment or repayment of their funded commitment. The interests in the Fund will be primarily illiquid, as there is no public market for such interests and no such market is expected to develop in the future. The interests will be subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under NI 45-106 and applicable provincial securities laws.
The Fund will be exposed to a number of risks and prospective investors should carefully consider the risks involved in an investment in such a Fund. To the extent that such strategy invests in the Underlying Fund, it indirectly has the same risks as the Underlying Fund it holds. This Fund takes on the risks of an Underlying Fund in proportion to its investment in that fund. Prospective investors should consult their own legal, tax and financial advisors about the risks of investment in such funds.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
Diversification does not assure a profit and does not protect against loss in declining markets.
Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates, with a significant minority stake held by funds managed by Reverence Capital Partners. Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes.
