The Caisse de dépôt et placement du Québec has completed the previously announced $150 million financing of La Capitale Financial Group.

The transaction will provide the Quebec-based company with additional capital to continue to grow and support its strategic development plan, according to a press release. It operates across Canada in the property and casualty insurance sectors, employs 2,700 people and has assets of $6.4 billion. 

Read: Caisse takes stake in Quebec-based Groupe Solmax

“La Caisse is delighted to partner with La Capitale, a Québec insurance leader,” said Marc Cormier, executive vice-president of fixed income at the pension fund, in the release. “Because of its resilience to economic cycles and the stable, long-term-oriented returns it generates, the insurance sector is perfectly in line with the investment profile sought by la Caisse.”

In other investment news, Caisse and the Public Sector Pension Investment Board, have both invested in Fives Group, a global industrial engineering company headquartered in France. Each pension fund will acquire a minority stake in Fives.

“For over 200 years, Fives’ technology has changed the way the industrial world operates,” said Stephane Etroy, executive vice-president and head of private equity at the Caisse, in a press release. “We are impressed by the company’s ability to continuously adapt, innovate and expand worldwide within the context of rapidly changing technological landscapes. Alongside Frédéric Sanchez, his management team and our partner PSP Investments, we look forward to contributing to the industrial advancement and improved resource efficiency through Fives.”

Read: Caisse investing $507 million in British insurance company

Also commenting on the transaction, Simon Marc, managing director and head of private equity at PSP Investments, noted it’s a great example of partnership with like-minded, long-term investors. “Fives has been at the forefront of innovation since its inception and we are looking forward to supporting its growth in the next industrial revolution.”

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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