For decades, institutional investors have allocated significant capital to private assets including private debt, private equity, venture capital, real estate, infrastructure, and other ‘non-correlated’ strategies. By diversifying their portfolios into these areas, institutional investors have been able to reduce the volatility that comes with investing exclusively in public stock and bond markets.
For example, at the end of 2021 fiscal year, the Canada Pension Plan (CPP) managed $500 billion on behalf of Canadians; approximately 50% of CPP’s portfolio was invested in alternative private assets with the balance allocated to publicly traded stocks and bonds.
Traditionally, institutional-quality private asset strategies have been difficult for smaller investors to access:
- They typically require minimum investment amounts of at least $2 million to $5 million
- Are relatively illiquid
- Often require that investors maintain significant personal cash reserves to meet contractual requirements of investing over multi-year periods
- Require a high degree of investment and tax expertise to evaluate, often at significant expense
- Are not usually eligible to be held in registered accounts like RRSPs
Bridgeport works in partnership with top tier asset managers, managing a wide range of private asset funds, all of which provide investors access to a diversified, global portfolio of institutional-quality private assets. Our private asset funds remove the hurdles that had previously prevented smaller investors from obtaining the benefits of true portfolio diversification.