Australian investment manager IFM Investors is opening a Toronto office at a time of substantial growth in institutional investor business, says Ken Luce, executive director of IFM Investors Canada.
“We have had two significant infrastructure investments in Canada. . . . It also gives a place for our investment team to even more closely manage those assets here locally.”
Even though the decision was set in motion years before Canada found itself in the middle of a trade dispute with the U.S., the ongoing geopolitical tension underscored the benefits of having a local presence in the country, he says, noting Canada represents a stable country with increasing investment opportunities, particularly around infrastructure.
“The Canadian institutional market has been a long-time investor in infrastructure and I don’t think the momentum is slowing in any shape or form. I think the sector is maturing, though more institutions focus on co-investments rather than just pure fund investments.”
The natural progression he described may be augmented by the federal government’s launch of a Major Projects Office agency dedicated to expediting infrastructure projects to potentially attract more private capital.
“It’s great for the industry — potentially expediting projects and reducing some of that red tape will get capital into the ground faster.”
He says the firm will look for opportunities in utilities, energy and transportation assets. It will also review the touted infrastructure projects to the extent these meet their risk and return objectives.
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