Scotiabank, in collaboration with Sun Life Financial (NYSE:SLF) Inc.'s SLC Management, announced on Tuesday that they will provide their affluent Canadian clients with access to various alternative investments. The offerings include real estate, private credit, and infrastructure. This move falls in line with strategies employed by other financial giants such as Wells Fargo & Co., Societe Generale (OTC:SCGLY) SA, and Deutsche Bank AG (NYSE:DB), who have also ventured into private-credit opportunities.
SLC Management, which oversees C$361 billion ($264 billion) in assets, has committed C$100 million in seed capital for future opportunities. This collaboration is part of Scotiabank CEO Scott Thomson's intensified focus on the bank's wealth-management business, which is the third-largest in Canada with C$631 billion in assets under administration.
The new division will be spearheaded by Jacqui Allard, a recent addition to the Scotiabank team. Meanwhile, Glen Gowland, the current group head of global wealth management at Scotiabank, will transition to a vice-chair role.
On Tuesday, the financial institution also highlighted that its high-net-worth clients can now tap into private alternative investments such as real estate and infrastructure through its partnership with Sun Life's SLC Management. The private credit market is projected to grow globally to $2.3 trillion by 2027 and is attracting Canadian investors seeking portfolio diversification and risk-adjusted returns.
This growing interest among Canadians towards the private credit market was underscored in a survey conducted by Ninepoint Partners. Both Scotiabank Global Wealth Management and SLC Management are significant players in the wealth management sector, overseeing assets worth C$631 billion and $361 billion respectively.
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