The Investment Management Corp. of Ontario is allocating US$1 billion to two global credit managers.
The majority of the capital, US$550 million, will be invested in Loomis, Sayles & Co., while another US$450 million will be invested in Beach Point Capital Management Ltd.
The move is part of a strategy to increase the IMCO’s allocations to actively managed public credit, according to a press release, which noted the capital will be used in active allocations to investment grade debt, high-yield bonds, structured credit and leveraged loans.
Read: IMCO returns 9.6% in 2021, aims to expand investments in alternative assets
In the release, Jennifer Hartviksen, managing director of global credit at the IMCO, said the allocations will expose the IMCO to public and private credit opportunities. “Our global credit strategy allows us to be flexible in response to market opportunities and the expertise of Loomis Sayles and Beach Point will make our program even more nimble and agile in pursuit of superior client returns.”
In other news, a school bus fleet operator partly owned by the Caisse de dépôt et placement du Québec is acquiring Canada’s largest private transportation company.
Student Transportation of America/Student Transportation of Canada will acquire Pacific Western Transportation, a company that provides school bus, employee, transit and coach transportation services to customers throughout British Columbia, Alberta, Saskatchewan, Ontario, Nova Scotia and the Yukon.
Read: Caisse leads purchase of U.S.-based school bus company
The deal is part of an acquisition strategy, which will bring 4,100 vehicles into STA/STC’s fleet, including 950 alternative fuel and electric buses. It will also add 5,000 employees to the payroll. In support of the deal, the Caisse reinvested in the company.
In a press release, Emmanuel Jaclot, executive vice-president and head of infrastructure at the Caisse, said that the company was “thrilled” by the growth strategy. “The acquisition of Pacific Western will combine the expertise of two of Canada’s leading players and provide an opportunity to further accelerate the electrification of their fleets, for the benefit of school children and local communities served by Pacific Western and STA/STC across the country.”
Read: IMCO returns 9.6% in 2021, aims to expand investments in alternative assets