Mackenzie Financial has agreed to purchase Canadian firm Greenchip Financial, an environmental investment manager.

Financial terms of the agreement were not disclosed.

The deal builds on Greenchip’s sub-advisory relationship with the Mackenzie Global Environmental Equity Fund, which oversees $315m in assets.

Greenchip manages over $485m on behalf of foundations, endowments and Canadian families.

The firm focuses on companies who generate revenue from selling products within the environmental sectors to facilitate the transition towards sustainable forms of energy.

This covers sectors, namely renewable energy, energy efficiency, clean technology, water, sustainable agriculture, and transportation.

Mackenzie president and CEO Barry McInerney said: “Canadians have historically had limited options available for investing in the environmental sectors. We believe that Greenchip’s investment strategy and expertise in energy transition and on climate change will help us meet the growing demand of both retail and institutional investors.”

Greenchip co-founder and president John Cook added: “Directing capital to sustainable infrastructure and environmental solutions has never been more important.

“Partnering with Mackenzie is not just a great cultural fit – it will enable us to take our sector expertise to a much broader group of investors.”

Founded in 1967, Mackenzie offers investment solutions to over one million retail and institutional clients.

It is a subsidiary of Canadian financial services company IGM Financial.

This September, Mackenzie and Great-West Lifeco agreed to take a non-controlling stake in Northleaf Capital Partners, a Toronto-based private equity, private credit and infrastructure fund manager.

In comparison, Greenchip is a much newer firm established in 2007.