Bain Capital has agreed to acquire a minority stake in Innocap Investment Management, the Montreal-based managed account platform provider, amid growing institutional demand for separately managed accounts (SMAs) in hedge fund investing, according to a report by Bloomberg.

The deal, expected to close in Q1 2026, will provide additional capital for Innocap’s next growth phase after platform assets surpassed $100bn, according to a statement on Wednesday.

SMAs have become a favoured route for hedge fund allocations, offering investors greater control, flexibility, and often lower fees. Around 60% of hedge funds now offer SMAs, according to Goldman Sachs.

Innocap’s assets have doubled in the past three years, CEO François Rivard said, citing demand from global allocators including pensions, endowments and sovereign wealth funds. Earlier this year, the Abu Dhabi Investment Authority (ADIA) also took a minority stake in Innocap and expanded its hedge fund exposure via SMAs to roughly $40bn.

Existing shareholders include Caisse de dépôt et placement du Québec (CDPQ), BNY Mellon, Walter Global Asset Management, and BNP Paribas.