(Bloomberg) -- Bank of Nova Scotia is partnering with Sun Life Financial Inc.’s asset-management division to give the lender’s affluent clients in Canada the chance to tap into private credit and other alternative assets growing in popularity.

Under the arrangement, Scotiabank’s Canadian high-net-worth clients will gain access to alternative investments in real estate, private credit and infrastructure through Sun Life’s SLC Management, which has about C$361 billion ($264 billion) in assets. SLC Management is also committing to invest C$100 million in seed capital for future funding opportunities.     

The partnership is the latest example of banks finding ways to break into the hot market for private-credit investments. Last month, Wells Fargo & Co. teamed up with Centerbridge Partners on a private-debt fund targeting at least $5 billion, Societe Generale SA announced a partnership with Brookfield Asset Management Ltd. and Deutsche Bank AG launched a new investment manager focused on private-credit opportunities.

Read More: Wells, Centerbridge Team Up on $5 Billion Private-Debt Fund

“Once the domain of the most sophisticated institutional investors, private alternative investments have been increasingly sought after for their important role in enhancing portfolio diversification and risk-adjusted returns,” Glen Gowland, Scotiabank’s group head of global wealth management, said in a statement. 

Banks are also on the hunt for greater fees from high-net-worth clients as they face uncertain revenue streams in other businesses, such as trading. Scotiabank Chief Executive Officer Scott Thomson said at a conference in September that he wants to “double down” on the lender’s wealth-management business. It’s the third-largest in Canada, with C$631 billion in assets under administration globally as of July 31, but it lacks a US presence, unlike its other large domestic competitors.  

Thomson, who took over as CEO in February and plans to unveil a refreshed strategy for the bank in December, recently hired Royal Bank of Canada executive Jacqui Allard to lead Scotiabank’s wealth-management business. She will take over at the beginning of the year from Gowland, who will move to a vice-chair role.

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