The pension fund feeders participating in this event were mainly family offices, mutual funds and financial institutions. This year, they were particularly interested in meeting companies specializing in cryptoassets and quantitative investing based on machine intelligence and data analysis, says Charles Lemay.

See talent in Montreal

Several major players were present, including the Caisse de dépôt et Placement du Québec and Hydro-Québec, as well as several financial institutions. The dispatchers came mostly from Montreal. A dozen came from Ontario. Five traveled from the United States and one from Europe.

Organizers received the first-ever Teacher Retirement System of Texas, one of the largest retirement funds in the United States, which has more than 1.7 million members and $231 billion in assets under management.

“They are specialists for up-and-coming managers. They wanted to see the talent that we have in Montreal in this area,” says Charles Lemay.

This talent was notably represented by Montrealers Bastion and Converium, who caught the attention of several allocators. Canadian firms that have held several meetings include Calgary-based Auspice and Bonnefield, a Toronto-based firm specializing in financing farmland leases.

A crucial moment for portfolio management

Allocators have shown interest in high-performing hedge fund strategies with exposure to commodities, long/short strategies that have evolved in recent years, and real assets such as housing and farmland.

“Portfolio management is at a crucial time as managers must prove they can protect clients’ money while generating alpha,” notes the President.

The aim of these meetings is not to conclude an agreement immediately, but to obtain a second appointment. “It takes an average of 6 to 7 meetings with an allocator before you get an investment,” says Charles Lemay.

This day represents a unique opportunity for emerging companies to make themselves known to major investors, as they rarely have the opportunity to gain access to the decision makers of major institutions, Charles Lemay points out. “Because for the majority of aspiring managers, the challenge is to grow,” he stresses.

More difficult in Canada than in the United States

In that regard, emerging managers in Canada have a steeper hill to climb compared to the reality of their American counterparts, says the partner at Walter Global Asset Management. They receive less support from Canadian financial institutions than their American competitors.

Many US pension funds allocate 1% to 2% of their total assets under management to emerging managers. “They find talent there to train the next generation of entrepreneurs who will take over. »

This lack of funding from financial institutions limits the growth of emerging companies, he laments. “In order to obtain funding, companies must be able to demonstrate to investors that they are able to perform adequately. However, a response history is built up over at least three years. So you need to have a strong back to get through the early years financially. According to the manager, the budget required to start a business is about $1.5 million.

“To be successful you have to have a good plan, well executed, with a good team. If there’s even the smallest weak link, it’s a risk. »

The CGE has about 75 members across Canada, reports Charles Lemay. “We’ve had up to a hundred. Some are no longer in business. Others have surpassed one billion in assets under management, the threshold to be considered an aspiring manager. »