An insurance holding company backed by the Caisse de dépôt et placement du Québec and the Ontario Teachers’ Pension Plan is making its inaugural transaction, valued at US$1 billion.
Constellation Insurance Holdings Inc. will acquire Ohio National Mutual Holdings Inc. and its wholly-owned subsidiary Ohio National Financial Services Inc., a deal that includes both member consideration and new capital infused in the business as part of its demutualization process, according to a press release. Ohio National operates across 49 U.S. states and as of Dec. 31, 2020, its affiliated companies have US$41.2 billion in assets under management, the release noted.
“Constellation is a uniquely-positioned platform, combining long-term capital and deep industry experience to offer differentiated solutions in an increasingly-consolidated market,” said Martin Laguerre, executive vice-president and head of private equity and capital solutions at the Caisse, in the release. “By working closely with Constellation since our initial investment and expanding our commitment alongside Ontario Teachers’, we aim to support insurers who are navigating a complex environment, such as Ohio National, as they embark upon the next phase of their growth.”
In a separate transaction, Ivanhoé Cambridge, the real estate subsidiary of the Caisse, is partnering with real estate group Lendlease to develop a $500-million project in Boston.
The 1.15-acre project will feature a life-science building within the Boston Landing real-estate development, with construction expected to commence in June 2022, according to a press release.
“This life-science development project is perfectly aligned with our investment strategy and vision, as we continue to invest in the life-sciences sector which fosters long-term growth fundamentals,” said Nathalie Palladitcheff, president and chief executive officer at Ivanhoé Cambridge, in the release. “Investing alongside Lendlease, who has a breadth of experience in constructing life-science and research facilities, will allow both partners to grow their exposure in this sector.”
In other investment news, the Canada Pension Plan Investment Board is investing $270 million in Iguá Saneamento, a Brazil-based water-and-sewage service holding company.
The investment will give the CPPIB a 45-per cent aggregate stake in the company and will be used to support the company’s growth objectives, according to a press release, which noted the Alberta Investment Management Corp. is an existing investor and will own an estimated 39-per cent aggregate stake.
“The opportunity to invest in a platform that can address the high demand for improved water and sanitation services in Brazil is a good fit with our diversified global infrastructure portfolio,” said Scott Lawrence, managing director and head of infrastructure at the CPPIB, in the release. “We look forward to working with our partners to support the growth of the business and improved services for municipalities in the coming years.”
In the release, Ben Hawkins, senior vice-president of infrastructure and renewable resources at the AIMCo, said the investment manager welcomes the addition of the CPPIB as a partner. “Iguá is well positioned for continued growth as a leading water-and-sanitation platform in Brazil and on behalf of our clients, we look forward to collaborating with all partners.”
In a separate transaction, the CPPIB is entering a joint venture with rental housing company Tricon Residential Inc. to invest in build-to-core multi-family rental projects in and around Toronto. The joint venture will provide up to $500 million of equity capital — including up to $350 million from the CPPIB and up to $150 million from Tricon — for the expected development of 2,000 to 3,000 units, according to a press release, which noted construction on the joint venture’s first project will commence in early 2022 in downtown Toronto.
“The greater Toronto area continues to experience significant undersupply of purpose-built rental properties and even less stock of modern, institutionally-owned-and-operated rental properties,” said Hilary Spann, managing director and head of real estate for the Americas at the CPPIB, in the release. “We see a long-term opportunity to build and invest in properties alongside Tricon, a well-respected owner, developer and operator in the region, to meet this need with newer multi-family properties in transit-oriented locations.”
And the University of Toronto Asset Management Corp. is investing in Impax Asset Management’s global opportunities strategy, which aims to achieve long-term capital growth by investing in companies that are likely to benefit from the transition to a more-sustainable global economy.
The investment takes place following the March 1 launch of a U.S.-based institutional-investment vehicle for the strategy, which the UTAM and Impax worked on for several months, according to a press release.
“We’re excited to partner with Impax in the launch of this new investment vehicle,” said Daren Smith, president and chief investment officer at the UTAM, in the release. “This initiative will not only benefit our client but also allow other investors to invest alongside us in this tax-efficient vehicle.”