Starlight Capital Private Alternative Investments

Starlight Private Investment Pools

Starlight Capital is at the forefront of the Canadian private alternative investments space. Our institutional-calibre due diligence provides Canadian accredited investors with the confidence to invest in private markets with us.

Starlight Private Global Real Estate Pool
Starlight Private Global Infrastructure Pool
Starlight Global Private Equity Pool

Invest like an Institution with Starlight Capital

Large Canadian pension plans have 46% of their assets in real estate, infrastructure, and private equity. Canadian accredited investors must rethink their asset allocation to include more alternatives to build an institutional-style portfolio. As Canadian pension plans look beyond traditional investments and increasingly turn toward alternatives, it’s clear that these investments offer unique benefits that would also benefit Canadian accredited investors.

Canadian Pension Plan Private Alternative Investment Allocations

Plan	Year	Assets (millions)	Real Estate	Infrastructure	Real Assets	Private Equity	Alternatives
CPPIB	2023	$570,296.0	9.0%	9.0%	18.0%	33.0%	51.0%
Caisse de dépôt et placement du Québec	2022	$401,900.0	11.9%	13.6%	25.5%	20.1%	45.6%
Ontario Teachers' Pension Plan	2022	$247,240.0	11.4%	16.1%	27.4%	23.6%	51.0%
Public Service Pension Plan	2023	$243,700.0	13.1%	12.1%	25.2%	15.6%	40.8%
BC Investment Management Corporation	2023	$233,000.0	16.8%	10.4%	27.2%	13.1%	40.3%
AIMCO	2022	$135,030.0	17.0%	15.2%	32.2%	8.8%	41.0%
Ontario Municipal Employees Retirement System	2022	$124,200.0	16.8%	20.8%	37.6%	18.4%	56.0%
Healthcare of Ontario Pension Plan	2022	$103,674.0	17.5%	4.5%	22.0%	19.3%	41.3%
Ontario Pension Board	2022	$31,022.4	18.8%	12.2%	31.0%	13.3%	44.3%
OP Trust	2022	$24,643.0	18.9%	16.1%	35.0%	16.1%	51.1%
		$2,114,705.4	15.1%	13.0%	28.1%	18.1%	46.2%

Source: Pension Plan Annual Reports.

Why Private Alternatives

Private alternative investments can be used as a long-term, core component in portfolios, complementing public market holdings with the potential to reduce risk and enhance returns. Adding private alternative investments to a portfolio of public market holdings can provide Canadian accredited investors with several benefits including:

Portfolio diversification

Private alternative investments provide exposure to different return drivers and risk variables that enhance the risk-adjusted returns of the portfolio.

Uncorrelated returns

Private alternative investments provide low correlation to broad asset classes and low correlation to other alternatives in your portfolio.

Cash flow growth

Private alternative investments’ returns are powered by long-term, structural drivers that generate sustainable cash flow growth.

Outcome

Complementing traditional asset classes with private alternative investments can create more efficient portfolios that generate better risk-adjusted returns on a more consistent basis.

Institutional-Calibre Due Diligence

Innovative Private Pool Structure

Best-in-Class Private Investment Partners

Canadian accredited investors are just beginning to allocate to private alternatives. However, at Starlight Capital, we've been positioning ourselves to capture private market opportunities for years. Starlight Capital has decades of experience investing in global markets and businesses, and with our institutional-calibre due diligence process and ongoing oversight, Starlight Capital is your trusted partner.

Starlight private investment pools are investor-focused. We target an 80% allocation to private assets for growth potential and target a 20% allocation to listed securities for diversification and liquidity. Canadian accredited investors can benefit from a targeted Net IRR of 12-14%, including a 5% annual distribution* paid quarterly. Monthly subscription and quarterly redemption privileges provide additional flexibility. *Excludes Starlight Global Private Equity Pool.

Each Starlight private investment pool plays a specific role in enhancing risk-reward within a portfolio, achieved through private partnerships with best-in-class private investment partners.

Within each Starlight private investment pool, Canadian accredited investors gain access to a diversified portfolio of private investments, with each private partner contributing distinct and complementary strategies to the overall pool.

Due Dilligence - Idea Generation

Our due diligence process assesses our private investment partners according to predefined criteria, which include:

Sponsors with at least $1B of AUM, track records over 10 years.
Sponsors that materially invest in their own strategies.
Strong short- and long-term track records of success driven by active management and value creation.
Institutional funds to provide retail investors with access to new strategies.

Due Dilligence - Private Investments

Each potential private partner is vetted for politically-exposed persons, adverse media, financial impropriety and material litigation.
Each potential private partner completes our proprietary operational due diligence questionnaire which covers seven areas of their business.
We interview the executive, investment, and operations teams and consult with existing investors.
We conduct property and asset tours to verify and evaluate the operating assets or potential investments.
External Investment Committee review for final approval and on-going oversight after capital deployment.

Due Dilligence - Valuation

The Starlight Private Pools are allocated to institutional private funds with due diligence performed by other large institutional investors.
Valuation methodologies follow IFRS accounting and are asset and strategy specific.
All underlying assets are valued on a periodic basis (monthly or quarterly) and audited annually.
Underlying investments have independent advisory committees that review the investments and valuations.
Starlight Capital has reviewed the valuation processes of each institutional private partner, receives regular updates, investor reporting and conducts on-going reviews of the process and its application.

Featured Private Investment Pools

Find out the appropriate Starlight Private Pool
that is best suited for you, or your clients' needs.

Starlight Private Global Real Estate Pool

The Starlight Private Global Real Estate Pool aims to achieve long-term capital appreciation and regular current income by investing globally in private real estate investments and in public real estate investment trusts (REITS) and equity securities of corporations participating in the residential and commercial real estate sector.

View Private Pool

Starlight Private Global Infrastructure Pool

The Starlight Private Global Infrastructure Pool aims to achieve long-term capital appreciation and regular current income by investing globally in private infrastructure and infrastructure-related investments and in publicly-traded companies with direct or indirect exposure to infrastructure.

View Private Pool

Starlight Global Private Equity Pool

The Starlight Global Private Equity Pool aims to achieve long-term capital appreciation by investing in a diversified global portfolio of private equity investments and publicly traded global equity securities.

View Private Pool

Portfolio Managers

Starlight Capital’s strength comes from our experienced portfolio managers and the expertise that they provide.

Managed Starlight Private Pools:
Starlight Private Global Real Estate Pool
Starlight Private Global Infrastructure Pool
Starlight Global Private Equity Pool

Managed Starlight Private Pools:
Starlight Global Private Equity Pool

Managed Starlight Private Pools:
Starlight Private Global Infrastructure Pool

Speak to your advisor

For more information on Starlight Capital private investment pools, contact your financial advisor.

Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the offering documents before investing. Investors should consult with their advisors prior to investing.

This material is for informational and educational purposes only. The information contained herein is not an offer to sell nor a solicitation to buy any security. Such an offer can only be made by prospectus or other applicable offering document.

There are ongoing fees and expenses associated with owning units of an investment fund. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.

Starlight Investments, Starlight Capital and all other related Starlight logos are trademarks of Starlight Group Property Holdings Inc.

Are you an accredited investor?

Starlight Private Pools are offered only to “accredited investors” or in reliance on another exemption from the prospectus requirement. By clicking “Accept”, you confirm that you are an “accredited investor” within the meaning of National Instrument 45-106 – Prospectus Exemptions, and in Ontario, within the meaning of Section 73.3 of the Securities Act (Ontario) as supplemented by the definition in National Instrument 45-106, on the basis that you fit within the category of an “accredited investor” as defined therein.

You may be an “accredited investor” if:

your net income before taxes exceeded $200,000 in both of the last two years and you expect to maintain at least the same level of income this year; OR Your net income before taxes, combined with that of a spouse, exceeded $300,000 in both of the last two years and you expect to maintain at least the same level of income this year;
you, alone or together with a spouse, own financial assets worth more than $1 million before taxes but net of related liabilities (cash, or certain investments such as public equity or bonds, would be considered liquid/financial assets); or
you, alone or together with a spouse, have net assets of at least $5 million (for the purposes of the net asset test, the calculation of total assets would include the value of a purchaser’s personal residence and the calculation of total liabilities would include the amount of any liability (such as a mortgage) in respect of the purchaser’s personal residence).

It is your obligation to consult with your financial advisor and/or such other advisors as you deem necessary in making the determination that you meet the definition of “accredited investor”.

Disclaimer

Information pertaining to the Starlight Private Pools is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of the Starlight Private Pools are made pursuant to their respective offering memorandum only to those investors in jurisdictions of Canada who meet certain eligibility or minimum purchase requirements. Important information about the Starlight Private Pools including a statement of each fund’s fundamental investment objective, is contained in their respective offering memorandum, a copy of which may be obtained from your dealer. Read the applicable offering memorandum carefully before investing. Unit values and investment returns will fluctuate.

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