Mackenzie Financial Corp. is expanding its green footprint with the purchase of Greenchip Financial Corp., a Canadian firm focused exclusively on the environmental economy.
Mackenzie – a subsidiary of investment giant Power Corp. of Canada – announced on Tuesday morning it will acquire 100 per cent of Toronto-based Greenchip, a socially responsible investment manager that oversees more than $485-million in assets on behalf of foundations, endowments and Canadian families. (The amount includes the Mackenzie Global Environmental Equity Fund.) Financial details of the deal were not disclosed.
“Canadians have historically had limited options available for investing in the environmental sectors. We believe that Greenchip’s investment strategy and expertise in energy transition and on climate change will help us meet the growing demand of both retail and institutional investors,” Mackenzie chief executive Barry McInerney said in a statement.
This is the third acquisition for Mackenzie Financial this year. In September, along with its sister company Great-West Lifeco Inc., Mackenzie bought a major stake in private-equity firm Northleaf Capital Partners, boosting their presence in the alternative investments space, such as infrastructure and private credit.
Greenchip already has a relationship with Mackenzie as it began sub-advising the Mackenzie Global Environmental Equity Fund in 2018, which currently has about $315-million in assets.
The deal will allow Mackenzie to enhance its family of funds focused on environmental leadership, gender diversity and sustainability.
“[The Mackenzie Global Environmental Equity Fund] has been growing very rapidly, and we expect this to continue as our internal research suggests that 80 per cent of financial advisers prioritize environmental or climate related factors in their selection of SRI investing products,” Mr. McInerney said.
Greenchip’s strategy includes looking at companies whose revenues are generated from selling products within the environmental sectors that aim to support the transition toward sustainable forms of energy. These typically fit into six sectors: renewable energy, energy efficiency, clean technology, water, sustainable agriculture and transportation.
“Directing capital to sustainable infrastructure and environmental solutions has never been more important,” John Cook, co-founder and president of Greenchip Financial, said in a statement. “Partnering with Mackenzie is not just a great cultural fit – it will enable us to take our sector expertise to a much broader group of investors.”
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