Canada's BMO partners with Carlyle to launch investment fund

(Reuters) - Canadian lender BMO Financial's asset management arm said on Friday it had partnered with U.S. private equity firm Carlyle Group to broaden access to private markets for Canadian investors.

BMO Global Asset Management's partnership is a part of BMO's push to make private markets - traditionally available to only large institutional investors - more accessible to a broader set of investors.

Companies often tie up with private equity firms, which typically have deeper experience navigating the private market, to boost returns on their investments.

Private equity investments offer exposure to companies that are not publicly traded and can generate higher returns than their public market equivalents. Such assets are more alluring during times of economic uncertainty.

Toronto-headquartered BMO said its partnership with Carlyle, which had $426 billion of assets under management at the end of 2023, will provide investors access to a global private equity portfolio through a fund, which is expected to be available this spring.

The fund will focus on secondary investments - the purchase of existing private assets from its current investors - and other investment opportunities, BMO said, adding that it will offer monthly subscriptions with "low investment minimums".

Last year, BMO had partnered with Swiss-based Partners Group to launch an investment fund, which invests in infrastructure, real estate, private credit, and private equity.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)