Alternative Investments

Making alternative investments accessible for Canadian accredited investors.

Alternative investments

Alternatives generally include assets that are either not traded publicly or a method of investing using non-traditional strategies. This broad category includes two specific areas of emphasis for BMO Global Asset Management – private markets and hedge funds.


Alternatives have long been a meaningful component of institutional, family office and ultra-high net worth investors’ portfolios. These investors allocate a significant portion of their portfolios to alternatives because they have historically improved risk-adjusted performance.


BMO Global Asset Management is focused on developing solutions that make private markets and hedge funds more accessible for Canadian accredited investors.

Alternative funds

BMO GAM offers both evergreen and closed-end funds for Canadian accredited investors through offering memorandums:

Portfolio solutions

All-in-one managed investment solution with professional asset allocation and regular rebalancing. It’s all taken care of for you.

BMO Partners Group Private Markets Fund*

(open-ended fund)

Provides access to globally diversified private markets in a single ticket for Canadian accredited investors

BMO First Canadian Capital Partners II

(close-ended fund)

BMO First Canadian Capital Partners II provides investors exclusive access to a diversified private equity solution using a traditional closed-end fund format.

BMO Carlyle private equity strategy partnership

(press release)
Single point access for Canadian accredited investors to globally diversified private equity portfolio through an investor friendly format.

BMO Georgian Alignment II Access Fund LP **

(close-ended fund)

Provides access to the Georgian Alignment Fund II, a concentrated growth equity fund invested in hand-picked software companies for Canadian accredited investors

Portfolio benefits

Alternatives can play a complementary role to the stocks and bonds within a traditional portfolio. Key benefits include:

Enhanced returns

Investments like Private Equity, on average, generate higher returns than public market equivalents. These investments may also carry more risk than their public market equivalents.

Icon of the USD within a circle and a half circle below

Generate income

Investments like Private Credit and Real Assets can produce stable, floating rate income.

Diversify risk

Diversified Private Markets and Hedge Funds can provide outcomes with limited connection to public markets that may increase the consistency of the overall portfolio returns.

Types of alternatives

Alternatives, just like public markets, refers to a variety of individual investment types. BMO’s focus within Alternatives is private markets – including equity, credit and real assets like real estate and infrastructure – and hedge funds.

Alternatives can be further described by region, sectors and other factors. For example, private equity includes venture capital or buyout investments, to name just two. Private credit can cover performing loans or distressed loans. And just like with traditional public market investments, each Alternative asset class is responsible for delivering a specific benefit to your portfolio.

the roles of asset classes within a portfolio

Our approach

BMO Global Asset Management uses two approaches to provide access to alternatives for Canadians accredited investors.

Create proprietary products

Where we have expertise and a demonstrated track record, we develop in-house solutions.

Find the best managers

Where we don’t have proprietary products, we take a research-first approach to identify strong global managers, and partner with them to fit the needs of Canadian accredited investors.

Meet the team

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June 17, 2024

Bridging the “Alternatives Gap”

Historically, individual accredited investors have lacked access to these kinds of alternative investments.
June 17, 2024

The Evergreen Solution

Private markets have the potential to increase returns and diversify risk away from public holdings.
June 17, 2024

Introducing Altitude

Our fundamental goal is to demystify Alternatives.

Alternative investments FAQs

What is the difference between private markets and public markets?
What are the main types of private market investments?
What is a closed-end fund?
What is an evergreen fund?
Are there different types of private equity?
What are the different types of real estate or infrastructure assets?


BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate. Certain of the products and services offered under the brand name, BMO Global Asset Management, are designed specifically for various categories of investors in Canada and may not be available to all investors. Products and services are only offered to investors in Canada in accordance with applicable laws and regulatory requirements.

Commissions, management fees and expenses (if applicable) may be associated with investments in mutual funds and exchange traded funds (ETFs). Trailing commissions may be associated with investments in mutual funds. Please read the fund facts, ETF Facts or prospectus of the relevant mutual fund or ETF before investing. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

For a summary of the risks of an investment in BMO Mutual Funds or BMO ETFs, please see the specific risks set out in the prospectus of the relevant mutual fund or ETF. BMO ETFs trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase the risk of loss. Distributions are not guaranteed and are subject to change and/or elimination.

BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate entity from Bank of Montreal. BMO ETFs are managed and administered by BMO Asset Management Inc., an investment fund manager and portfolio manager and separate legal entity from Bank of Montreal.

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