About us
Industry Observations
Challenges faced by market participants
Institutional Investors Needs
- Finding new sources of return is a must; this is becoming more difficult as the offerings of market participants converge;
- Due-diligence reviews are time-consuming and costly; and
- Fiduciary risk remains a challenge for the investment process for institutional investors.
Emerging Managers Services
- A first institutional mandate is very difficult to obtain;
- Building a fund structure and operational framework appealing to institutional investors is burdensome; and
- Institutional fund governance and compliance requires in-depth knowledge and expertise.
Result
Incompatibility between institutional investors’ needs and emerging firms offering , this results in a situation of inertia that hinders the development of new asset managers.
Quebec Emerging Manager Program
Quebec's asset management industry united to fill the gap
Origin
- Created by the Entrepreneurship work group of Finance Montreal, a cluster composed of financial institutions, and other market participants led by Messrs. Vital Proulx and Stéphane Corriveau; both wellestablished investment management firms from Quebec.
Mission
- To offer investment strategies to institutional investors seeking to diversify their sources of alpha by using emerging managers;
- To promote entrepreneurship in finance by granting mandates to emerging managers; and
- To offer operational and structural support to new asset managers.
Advantages
For institutional investors
- Thorough due diligence reviews and careful selection of emerging managers;
- Institutional fund structure created and managed by Innocap, reducing operational risks that may be linked to emerging managers;
- Allows internal teams to focus on investment functions and to delegate operational, risk, legal and compliance functions to managed accounts experts; and
- Participate in the growth and success of new investment strategies from Quebec managers.
For emerging managers
- Acquire important mandates without losing any equity in their firm;
- Gain better governance structure and support to ensure firm sustainability;
- Allows asset managers to focus on investment activities; and
- Obtain the support/recognition of the financial community.