Bringing Institutional-Style Private Equity Exposure to Individual Investors

Canadian pension funds are widely regarded as leading institutional investors and are often used as a model by multi-strategy asset managers globally. Now commonly referred to as the “Maple 8”¹, these institutions have earned a reputation for their sophisticated investment programs and ability to deliver attractive long-term returns for their stakeholders. 

A Proven Model for Long-Term Returns

Although Canada ranks 38th globally by population, it holds the third-largest share of global pension wealth. Remarkably, Canada’s Maple 8 are eight of the world’s 100 largest pension funds and together manage more than $1 trillion in assets. This success has led several major global pension funds to pursue reforms aimed at replicating the Maple 8 model. For example, the United Kingdom’s Chancellor of the Exchequer recently met with members of the Maple 8 to draw inspiration for reforming the U.K.’s retirement system. 

Key factors contributing to the success of this “Canadian model” include independent governance, professional in-house investment management and a top-tier talent strategy. These features have allowed the Maple 8 to focus solely on maximizing long-term investment returns. The 10-year annualized return for the Maple 8 ranges from 7.3 per cent at OMERS (Ontario Municipal Employees Retirement System) and AIMCo (Alberta Investment Management Corporation) to 9.3 per cent at CPP (Canada Pension Plan), significantly outperforming their global peers over the same period. A major factor contributing to these long-term returns is their allocation to private markets, including private equity. For example, CPP has the highest allocation to private equity — more than 30 per cent of its fund — a notable factor in its outperformance relative to its Maple 8 peers. 

Translating Institutional Expertise for Individual Investors 

The Nicola Private Equity Limited Partnership is taking a similar approach to enhancing long-term investment returns for our clients. We employ an investment strategy comparable to that of the Maple 8 to provide institutional-style private equity exposure in an evergreen fund structure suitable for individual investors. 

Like many of the Maple 8 private equity programs, the core element of our strategy is a partnership-centric approach to direct investing, aiming to work with top-tier partners, accessing high-quality opportunities, and selecting the best deals from our opportunity set. Over the past 13 years, we have developed sophisticated in-house capabilities, attracted highly skilled private equity talent, and established a rigorous investment process to execute this strategy. As we continue to grow, we have taken further steps to align our approach with this institutional-style model. This includes expanding our in-house investment team with professionals from leading institutional private equity investors such as CPP Investment Board, OMERS, Dawson and Northleaf. 

As shown below, we take a methodical approach to investing, and every new direct investment is effectively underwritten twice: first based on the quality of our partner (Partner Selection) and then based on the attractiveness of the asset (Asset Selection). 

Our Process 

Partner Selection 

As the private equity industry becomes increasingly competitive, we focus on identifying and partnering with firms that have a proven track record and distinct capabilities for creating value. Our process begins with a market map of hundreds of potential partners. Over several months, we proactively build relationships with our highest-priority firms. From there, we conduct in-depth evaluations of their performance history, strategic approach, and the quality of their investment teams to determine whether they are the right fit for a partnership.

Once we select a partner, we typically formalize the relationship either through a commitment to their fund or by establishing a separately managed account (SMA), which serves as the framework for how we’ll pursue direct investments together. NPELP currently has eight of these strategic partnerships, with plans to grow to approximately ten by year-end. We believe these partners bring deep expertise, with specializations across key sectors—such as technology, healthcare, and industrials—and segments of the private equity market, including mid-market and large-cap investments. Together, they offer our clients well-diversified exposure and access to a broad range of private equity opportunities.

Asset Selection 

We have built a strong reputation in the private equity market for our direct investing approach in collaboration with our partners. Once we establish our partnerships, we gain access to a large investible universe of direct opportunities. Our goal is to apply a disciplined asset selection process to invest only in the most compelling opportunities that align with our strategy.

Each opportunity undergoes an extensive due diligence process led by our investment team, typically over a four- to six-week period. We assess industry trends, competitive dynamics, the company’s financial profile, and valuation to determine whether the opportunity merits investment from NPELP. In parallel, we take a systematic approach to portfolio construction to ensure that each new investment aligns with our targets for sector, geographic, and vintage diversification. We are highly selective, maintaining a high bar for every investment. For example, in 2024, we received and evaluated 175 direct inbound opportunities and ultimately closed only eight transactions.

A Long-Term, Disciplined Approach to Private Equity 

NPELP’s investment strategy is grounded in the principles commonly employed by Canada’s leading pension funds:  a focus on long-term returns, deep in-house expertise, and a disciplined approach to private equity investing. Through a partnership-centric direct investing model and methodical partner and asset selection process, we aim to access the best possible opportunities while maintaining a thoughtful approach to portfolio construction. With a strong commitment to long-term value creation, we believe NPELP offers clients attractive, institutional-style, well-diversified private equity exposure. 

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