Sammy Hudes of the Canadian Press reports BCE cuts quarterly dividend, signs fiber deal with PSP Investments:

BCE Inc. cut its quarterly dividend payment to shareholders and announced a partnership deal with the Public Sector Pension Investment Board to help accelerate the development of fibre infrastructure in the U.S.

BCE chief executive Mirko Bibic said Thursday the dividend cut comes as the company faces intense price competition against a backdrop of macroeconomic and geopolitical instability.

The company said it will now pay a quarterly dividend of 43.75 cents per share, down from 99.75 cents per share. The decision cuts BCE’s annualized dividend to $1.75 per common share from $3.99.

“As we debated this, deliberated at the board, certainly having taken and having listened to the perspectives of investors over the last few months, we decided that resetting the dividend ... was the most responsible way to address our capital allocation strategy,” Bibic said in an interview.

“Essentially the new dividend level allows us to de-lever and invest for growth.”

Inflation and the prospect of a global recession are weighing on consumer confidence, the company said, while reductions in BCE’s share price have resulted in higher capital costs. BCE’s board also considered factors such as an “unsupportive regulatory environment given recent CRTC decisions” and a slowdown in immigration to Canada.

Bibic said there have been “significant changes” in the economic and operating environments since the fall of 2024 that the company needs to address.

While last quarter began with wireless prices stabilizing, the latter half of that period saw more fluctuations. That, along with the “overall macro environment” affected Bell’s ability to boost subscriptions, Bibic said.

BCE had a net loss of 9,598 postpaid mobile phone subscribers in its first quarter, compared with 45,247 net activations during the same period a year earlier.

The company cited a “less active market,” slowing population growth due to federal immigration policies, and its own focus on “higher-value subscriber loadings.” Bibic said there were 25,000 net new customers on the main Bell brand in the quarter, which was down 9,000 year-over-year.

The company said customer churn — a measure of subscribers who cancelled their service — was stable at 1.21 per cent. BCE’s mobile phone average revenue per user was $57.08, down 1.8 per cent from the prior year.

The dividend cut came as BCE reported net earnings attributable to common shareholders of $630 million or 68 cents per diluted share for its first quarter, up from $402 million or 44 cents per diluted share a year earlier.

On an adjusted basis, BCE says it earned 69 cents per share in its latest quarter, down from an adjusted profit of 72 cents per share in the same quarter last year.

Operating revenue totalled $5.93 billion, down from $6.01 billion a year ago.

Meanwhile, Bibic told analysts on a conference call that BCE’s previously announced deal to buy U.S. fibre internet provider Ziply Fiber for about $5 billion in cash is expected to close in the second half of 2025.

Under a plan announced Thursday, Ziply Fiber will become a long-term partner to Network FiberCo, jointly owned by PSP Investments and BCE, as the exclusive internet service provider to locations passed by Network FiberCo.

BCE through Ziply Fiber will hold a 49 per cent equity stake in Network FiberCo, while PSP Investments will own 51 per cent. PSP Investments has agreed to a potential commitment in excess of US$1.5 billion.

“We anticipate that more institutional investors will now consider investing in BCE to diversify their Canadian telecom positions, which should provide support and counterbalance the selling pressure from dividend seekers selling over the coming weeks,” said Desjardins analyst Jerome Dubreuil in a note.

Network FiberCo will be focused on “last-mile fibre deployment” outside of Ziply incumbent service areas in the Pacific Northwest, enabling Ziply to potentially reach up to eight million total fibre passings.

Bibic said that would make BCE the third-largest fibre internet provider in North America, essentially doubling the number of locations where it already serves fibre customers in Canada.

“There’s clearly long-term growth potential in this critical space,” Bibic said.

Earlier this year, BCE said it would scale back plans for the build of its fibre internet footprint in Canada, as a response to regulatory rules implemented by the CRTC surrounding internet resell access.

Bibic said Thursday the company will continue to advocate to the telecom regulator and new federal government when it comes to competition policy. He reiterated that BCE’s largest competitors should not have the ability to resell fibre services through Bell’s network.

“We’re continuing to build fibre, we’re just doing it at a slower pace than we anticipated,” he said in an interview.

“Large players should invest in their own networks. That increases competition and it increases network resiliency, and it’s the best way to ensure that all Canadians, including rural, are connected.”

Earlier today, BCE and PSP Investments issued a press release announcing a strategic partnership to create Network FiberCo:

MONTRÉAL, May 8, 2025 – BCE Inc. (TSX: BCE) (NYSE: BCE), Canada’s largest communications company1, and Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors, today announced the formation of Network FiberCo, a long-term strategic partnership to accelerate the development of fibre infrastructure through Ziply Fiber, in underserved markets in the United States. 

As a premier wholesale network provider, Network FiberCo will be focused on last-mile fibre deployment outside of Ziply Fiber’s incumbent service areas, enabling Ziply Fiber to potentially reach up to 8 million total fibre passings.  

PSP Investments has agreed to a potential commitment in excess of US$1.5 billion.

Leadership Perspectives 

“Today’s announcement represents a pivotal step in BCE’s fibre growth strategy. By bringing PSP Investments’ financial resources and acumen to Ziply Fiber, we are creating a scalable, capital-efficient platform to fund U.S. fibre footprint expansion. This strategic partnership will improve free cash flow generation and strengthen EBITDA accretion over the long term, reinforcing our commitment to delivering long-term value for shareholders while maintaining financial discipline.” 

• Mirko Bibic, President and CEO, BCE and Bell Canada 
  

“PSP Investments is pleased to partner with BCE, a long-standing Canadian champion of innovation and connectivity, to support the development of fibre infrastructure in Ziply Fiber’s target markets, which benefit from secular tailwinds. This commitment by PSP Investments will generate inflation linked and downside protected returns, which will contribute to fulfilling our mission to support the retirement of people who protect and serve Canada. PSP Investments has been an investor in Ziply Fiber, and this partnership, leveraging our global infrastructure experience, aligns perfectly with our strategy and strengthens our diversified portfolio.” 

• Deborah Orida, President and Chief Executive Officer, PSP Investments 
  

“This strategic partnership aligns perfectly with Ziply Fiber’s mission to improve connectivity in the communities we serve. We’re combining our operational expertise with BCE’s scale and PSP Investments’ financial strength to accelerate fibre deployment, enhance customer experiences, and drive sustainable growth.” 

• Harold Zeitz, CEO, Ziply Fiber 
  

Key Highlights of the Strategic Partnership 

• Ownership Structure: BCE through Ziply Fiber will hold a 49% equity stake in Network FiberCo, with PSP Investments owning 51% through its High Inflation Correlated Infrastructure Portfolio (HICI), contingent on closing of BCE’s acquisition of Ziply Fiber.  

• Fibre Expansion Goals: Network FiberCo will develop approximately 1 million fibre passings in Ziply Fiber’s existing states and will target development of up to 5 million additional passings, which will enable Ziply Fiber to reach up to 8 million total fibre passings. 

• Optimized Capital Efficiency: Network FiberCo will have its own non-recourse debt financing, which is anticipated to be the majority of its capital over time. BCE and PSP Investments will proportionately fund equity required by Network FiberCo to support fibre expansion. 

• Complementary Skill Set: The operational capabilities of BCE combined with PSP Investments’ significant infrastructure investing experience will enable Network FiberCo to capture the substantial growth anticipated and deliver the target fibre passing for Ziply Fiber.  
  

Strategic Rationale 

The U.S. fibre broadband market represents a transformative growth opportunity, with penetration rates well below Canada’s and efficient construction costs enabling large-scale deployment. Network FiberCo’s scalable platform supports both organic fibre expansion and potential acquisitions while enhancing returns through its capital-efficient structure. 

Driving Sustainable Growth 

BCE’s proposed acquisition of Ziply Fiber marks a strategic entry into the U.S. broadband market, securing a leading management team and operating platform with significant long-term growth potential. This disciplined reinvestment unlocks value through an expanded and diversified fibre footprint while benefiting from economies of scale.  

Ziply Fiber has achieved significant fibre broadband subscriber growth and adjusted EBITDA growth in 2024, validating the strategic rationale and demonstrating its ability to generate meaningful and sustainable long-term cash flow. 

Ownership and Operations 

Upon, and contingent on, close of the previously announced acquisition of Ziply Fiber, BCE will assume 100% ownership of Ziply Fiber’s existing operations. Ziply Fiber, as a BCE subsidiary, will continue to operate its existing network and execute its in-footprint fibre-to-the-home build strategy. Ziply Fiber will become a long-term partner to Network FiberCo, jointly owned by PSP Investments and BCE, as the exclusive Internet service provider to locations passed by Network FiberCo.

Additional Transaction Details 

The transaction is expected to close in the second half of 2025, subject to customary closing conditions and the closing of BCE’s previously announced acquisition of Ziply Fiber.  

Analyst Call Details 

BCE will hold a conference call with the financial community at 8:00 AM ET today, May 8, 2025 to discuss its Q1 2025 results and speak to the Network FiberCo strategic partnership. Media are welcome to participate on a listen-only basis. To participate, please dial toll-free 1-844-933-2401 or 647-724-5455. A replay will be available until midnight on June 8, 2025 by dialing 1-877-454-9859 or 647-483-1416 and entering passcode 7485404. A live audio webcast of the conference call will be available on BCE's website at BCE Q1-2025 conference call.   

About BCE 

BCE is Canada’s largest communications company1, providing advanced Bell broadband wireless, Internet, TV, media and business communication services. To learn more, please visit Bell.ca or BCE.ca. 

Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let's Talk initiative, which promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let's Talk Day and significant Bell funding of community care and access, research and workplace leadership initiatives throughout the country. To learn more, please visit Bell Let’s Talk. 

About PSP Investments 

The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$264.9 billion of net assets under management as of 31 March 2024. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn. 

Earlier today, Charles Bonhomme, Senior Advisor External Communications and Media Relations, sent me a few background points on this deal:

• This strategic partnership with BCE, a long-standing Canadian champion of innovation and connectivity, will enable PSP to capitalize on the transformative growth opportunity presented by Ziply Fiber’s target broadband markets.
• Aligned with PSP’s investment strategy, this partnership will generate inflation-linked, and downside protected returns, helping PSP Investments to meet its mission to support the retirement of people who protect and serve Canada. 
• PSP Investments brings significant global infrastructure investing experience to this partnership, and combined with BCE’s operational capabilities, forms a complimentary skillset that will enable Network FibreCo to capture the substantial growth anticipated and deliver the target fibre passing for Ziply Fiber.
• Investing in high-quality, essential infrastructure like transportation, communications, and energy is a core part of our strategy. We look for reliable assets that generate steady returns, and this partnership aligns perfectly with our strategy and strengthens our diversified portfolio.
• PSP Investments has been an investor in Ziply Fiber, and this strategic partnership supports the development of fibre infrastructure in Ziply Fiber’s target markets, while achieving our mandate.

Recall that BCI, CPP Investments and PSP Investments exited Ziply Fiber back in November 2024 when BCE acquired it.

At the time, I provided a background on Ziply Fiber and explained how the syndicate put in US$2.45 billion in total (including debt) and sold Ziply to BCE for US$3.6 billion (CAD $5 billion) five years later for a decent return.

In this latest deal, BCE and PSP Investments announced the formation of Network FiberCo, a long-term strategic partnership to accelerate the development of fibre infrastructure through Ziply Fiber, in underserved markets in the United States.  

On LinkedIn, PSP Investments posted these comments from CEO Deborah Orida:

She notes how this commitment by PSP will generate inflation linked downside protected returns and that they have been an investor in Ziply Fiber and therefore know the company well.

The press release states PSP Investments has agreed to a potential commitment in excess of US$1.5 billion. 

That's a significant commitment and I think it's a wise one as Network FiberCo will help Ziply Fiber accelerate its growth in US broadband markets it is serving.

Keep in mind, both the US and Canada are experiencing strong growth in fiber-to-the home-adoption, driven by increased demand for faster internet speeds and the need to modernize infrastructure.

Think about how often you stream movies or shows from Netflix, Disney or another provider and think about how all that demand for streaming gets through to households.

That is why Ziply Fiber is growing very rapidly, providing fast fiber speeds to meet this growing demand.

A lot of analysts criticized BCE's acquisition stating it was too risky but I think they did the right long -term move here and now with PSP Investments as its strategic partner in Network FiberCo, they will provide the needed support for Ziply Fiber to accelerate its growth. 

Again, this mega deal shows how Canada's large pension funds can work with large strategic corporations to help them grow and the telecom sector is a great area because it requires a massive amount of capital.

What does BCE get? A strategic partner in PSP that will provide significant and stable capital and strong knowledge of the communications infrastructure space. It can use its balance sheet more effectively with PSP as a partner to accelerate the growth of this strategic asset in the US.

And despite the big cut in the dividend, BCE shares had a strong day:

That tells me most investors were expecting the cut and are happy about it.

Now, I realize a lot of investors, especially retired seniors, aren't happy to hear the dividend has been chopped in half (14% to 6%) but BCE CEO Mirko Bibic said the new dividend will allow them to "de-lever and invest for growth."

With the decline in immigration and the stock way off its 5-year high, I don't think BCE has much of a choice because growth will be hard to come by.

As far as PSP Investments, I foresee more strategic partnerships with large corporations in areas like this where they can realize stable inflation-linked, downside-protected returns and commit significant capital.

This deal definitely fits in their mandate and in a slowing economy, it makes a lot of sense.

Below, Mirko Bibic, president and chief executive officer of BCE and Bell Canada, joins BNN Bloomberg to discuss Q1 2025 earnings results.

Bibic discusses the joint venture with PSP to accelerate last mile fiber at Ziply Fiber and explains why this will drive subscription revenue and EBITDA growth at Ziply and increase free cash flow profile at Bell by over a billion dollars over next three years.

Also, Dan Rohinton, portfolio manager at iA Global Asset Management, shares his analysis of BCE Inc. earnings results and the decision to cut its dividend. 

Listen to his comments on how PSP has bought in for the majority of the fiber buildout with this new joint venture and how it stands to gain significantly on this deal.

Nina Kienle and Adria Calatayud of the Wall Street Journal report Veolia to Buy CDPQ's Stake in Water Technologies and Solutions for $1.75 Billion:

Veolia said it agreed to buy Caisse de Depot et Placement du Quebec's minority stake in its Water Technologies and Solutions subsidiary for $1.75 billion, taking full ownership.

The French utility and resource-management company said Wednesday that the acquisition of the investment group's 30% stake will allow it to achieve cost savings and accelerate earnings growth at the business.

It now aims to achieve an annual growth rate in earnings before interest, taxes, depreciation and amortization of at least 10% for its water-technologies division over the 2023-27 period, it said.

The business generated an Ebitda of 612 million euros ($695.8 million) in 2024 with an organic growth rate of 16%. Sales in the first quarter of 2025 were stable on year.

The deal, due to be completed by the end of June, is expected to lead to annual cost synergies of 90 million euros by 2027, the company said.

This in turn should serve as an important new growth driver in achieving its medium-term Ebitda target, RBC Capital Markets analysts said in a note to clients.

Whilst additional synergies are a positive, Jefferies analyst Yi Shu Ho notes that the transaction is part of Veolia's GreenUp plan and not incremental. "Market will likely be concerned over balance sheet headroom," he said.

JPMorgan analysts find the acquisition to be strategic, but note results for the first quarter were only neutral.

The company posted sales for the three-month period that fell to 11.51 billion euros from 11.57 billion euros the prior-year period. The figure missed analysts' expectation of 11.62 billion euros, according to consensus estimates provided by Visible Alpha.

Earnings before interest, taxes, depreciation and amortization, however, rose to 1.70 billion euros from 1.62 billion euros with a margin expansion of 14.7% from 14.1%, it said.

Current earnings before interest and taxes also rose, amounting to 915 million euros, up from 843 million euros, it added.

Veolia backed its guidance for the year, targeting organic Ebitda growth at around 5% to 6% and current net income growth of around 9%, it said.

Shares trade 2.5% lower at 31.63 euros.

Dimitri Rhodes and Etienne Breban of Reuters also report Veolia to take full ownership of water management unit in $1.75 billion deal, gets $750 million in new contracts:

May 7 (Reuters) - French group Veolia said on Wednesday it will buy the 30% of shares in Water Technologies and Solutions (WT&S) that it does not already own from Quebec Deposit and Investment Fund (CDPQ) for $1.75 billion.

The waste and water management company also announced $750 million in three new contracts to supply water to clients in the energy and semiconductor sectors. Veolia also estimated that gaining full control of WT&S will help it extract 90 million euros ($102.3 million) of additional cost synergies by 2027. "This (deal) will allow us to take full control of all our water technology branches, and thus deliver the full potential of this activity, which is at the heart of our strategic business," CEO Estelle Brachlianoff told Reuters. Over half of WT&S's business is in North America, the CEO added in a press call, consistent with Veolia's plan to strengthen its presence in water technologies activities and in the United States, both identified as priority growth boosters. It expects the WT&S deal to close by the end of June. Veolia said the new contracts included a $550 million deal with a very large microelectronics factory in the American Midwest, and smaller contracts in San Francisco, Brazil and the UAE. "By 2027, we want to increase our turnover in the United States by 50%, and we want to double the size of our business in the United States by 2030," Brachlianoff said in the press call. Veolia reported 20% of group sales in France, 60% of group sales in Europe, including France, and 40% of group sales outside Europe, including $5 billion in the U.S. in 2024, the CEO said. The company posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.7 billion euros for the first quarter, up from 1.62 billion euros a year ago. It also reiterated its guidance for 2025. ($1 = 0.8814 euros)

Veolia issued a press release stating it has acquired CDPQ’s 30% stake in Water Technologies and Solutions, achieving full ownership to accelerate value creation:

Veolia has signed an agreement with CDPQ for the acquisition of its 30% stake in Veolia’s subsidiary Water Technologies and Solutions (“WTS”), allowing Veolia to achieve full ownership of WTS, enabling to unlock more value potential, simplify further its structure and extract additional run-rate cost synergies of ~€90m.

This acquisition is a logical step in the deployment of Veolia’s GreenUp strategic roadmap, with an efficient capital allocation to strengthen the Group’s anchoring in Water technologies activities and in the United States, both identified as priority growth “boosters”.

The acquisition of CDPQ’s minority interests will further strengthen Veolia's unique positioning as a global leader in Water Technologies. The Group is perfectly positioned to take advantage of the growing demand for innovative water treatment technologies and solutions, fueled by macro-trends such as water scarcity, adaptation to climate change, health concerns and the development of strategic industries such as semiconductors, pharmaceuticals and data centers.

The acquisition of the remaining 30% of Veolia’s subsidiary WTS will allow full operational control, enabling it to enhance operational performance and seize all opportunities for development and innovation, through a complete integration process. Following the acquisition, the Group will be able to unlock additional ~€90m of run-rate cost synergies by 2027. Those synergies are already well-identified and benefit from a very low execution risk, given the deep and intimate knowledge of the asset and Veolia’s proven track-record in synergies extraction. The acquisition is expected to be accretive from 2026 and will contribute to improve Group ROCE.

The purchase price for the acquisition will be $1.75bn (~€1.5bn), corresponding to ~11x EV/post-synergies 2025e EBITDA. Post-transaction, Veolia will still maintain headroom compared to its Net Debt / EBITDA target of 3x, allowing the Group to retain strategic flexibility to continue to deploy its GreenUp strategic plan.

Veolia confirms all 2025 guidance and GreenUp targets previously communicated both at Group level and at Water Technologies level, and now aims to achieve an EBITDA CAGR of at least +10%(1) over the 2023-2027 period for its Water Technologies division.

“This acquisition marks a pivotal step in unlocking the full value potential of Water Technologies, a growth booster identified as a priority in our GreenUp strategic plan, and a segment where we are already a market leader. Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities. This move is especially crucial given the urgent and rapidly evolving needs of the market, allowing us to respond faster and more effectively to emerging opportunities and challenges," said Estelle Brachlianoff, Veolia’s Chief Executive Officer.

“We are proud of WTS’ achievements since our investment in 2017, as it has grown into a global market leader in water technologies. Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation. We are grateful for the close collaboration with the management teams at WTS and Veolia, and we wish them every success in this next chapter," said Albrecht von Alvensleben, Managing Director, Head of Private Equity Europe at CDPQ.

The closing of the transaction is expected by the end of June 2025.

Veolia Water Technologies segment

• In FY2024, Veolia Water Technologies segment achieved revenues of €4.97bn (41% North America, 25% Europe, 13% Asia Pacific, 13% Africa Middle-East and 8% Latin America) and EBITDA of €612M. The business serves over 8,000 clients in 44 countries, with 38 technological sites and 11 dedicated R&I laboratories.
• Veolia Water Technologies activities include both Veolia WT, 100% owned and Water Technologies and Solutions “WTS” subsidiary, 70% Veolia-30% CDPQ.

Water Technologies and Solutions “WTS” subsidiary;

• WTS was formed as a 70%-30% joint venture between Suez and CDPQ in 2017, before becoming a subsidiary of Veolia following the Veolia–Suez merger in 2022, with CDPQ keeping its 30% minority stake. In FY2024, WTS achieved revenues of €3.3bn ($3.6bn) and EBITDA of €472M ($511M).

ABOUT VEOLIA

Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with 215,000 employees, the Group designs and deploys useful, practical solutions for the management of water, waste and energy that are contributing to a radical turnaround of the current situation. Through its three complementary activities, Veolia helps to develop access to resources, to preserve available resources and to renew them. In 2024, the Veolia group provided 111 million inhabitants with drinking water and 98 million with sanitation, produced 42 million megawatt hours of energy and treated 65 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 44.7 billion euros in 2024.

It is worth going back to the 2017 press release when CDPQ teamed up with SUEZ in a joint venture to acquire GE Water:

Today Caisse de dépôt et placement du Québec and SUEZ announced that they have entered into an agreement with General Electric Company to acquire its Water & Process Technologies business (“GE Water”), a leading provider of water treatment solutions. The transaction values GE Water at approximately USD 3.4 billion. As part of the transaction, CDPQ will invest over USD 700 million for a 30% stake. SUEZ will have a 70% stake and will contribute its industrial water business to GE Water to create a new self-standing business unit within SUEZ encompassing all industrial water activities with a global focus.

With operations in 130 countries and over 7,500 employees, GE Water is a global leader in the provision of equipment, chemicals and services for the treatment of water and wastewater. In order to address its industrial clients’ increasingly complex needs, GE Water invests heavily in research and development of unique solutions. Its innovative technology has made it one of the most sophisticated players in its industry.

Long-term demand for water treatment equipment, chemicals and services are expected to remain strong both as a consequence of growing water scarcity and the impact of global warming on the water cycle. Furthermore, there are increasing global concerns related to industrial wastewater and its impact on the environment which make advanced treatment of water an absolute necessity. In this context, CDPQ is looking to increase its exposure to the water sector and views this investment as a way to generate long-term value.

“With an emphasis on industrial applications, GE Water has positioned itself as a key player in the water treatment industry thanks to its cutting-edge technology and a management team that has proven itself highly skilled at leveraging that competitive advantage,” said Michael Sabia, President and Chief Executive Officer at CDPQ. “Operating in a core industry, GE Water has built a premier business with recurring revenues and a high-quality and diversified customer base. This investment is therefore highly aligned with CDPQ’s long-term vision and its strategy of increasing its emphasis on stable assets anchored in the real economy, alongside a world-class operator such as SUEZ.”

Jean-Louis Chaussade, CEO of SUEZ, said: “I am very proud to announce the acquisition of GE Water, which will accelerate the implementation of SUEZ’ strategy by strengthening its position in the promising and fast-growing industrial water market. This combination will create further value for both our clients and shareholders. Clients will benefit from the combined knowledge, expertise, geographic footprint and leading edge products and services available. The transaction will also deliver strong value to our shareholders by enhancing SUEZ’ profitable growth profile. I look forward to integrating GE Water’s highly skilled staff to our teams to form an unparalleled industrial water platform. We are also thrilled to join forces with CDPQ, a financial investor which shares our long term vision for our business.”

SUEZ is a French, publicly-listed industrial services and solutions company focused on water optimization and waste recovery. By teaming with SUEZ, CDPQ gains a strong partner which can help accelerate the growth and success of GE Water.

In 2017, GE Water was rebranded as SUEZ Water Technologies & Solutions after it was acquired and SUEZ and Veolia finally merged in 2022 and the company became known as Water Technologies and Solutions.

CDPQ acquired a 30% stake for $700 million and exited selling it to Veolia for $1.75 billion (all USD figures) after eight years.

The key here is what Veolia’s CEO Estelle Brachlianoff and CDPQ's Managing Director, Head of Private Equity Europe lbrecht von Alvensleben stated in the press release:

“This acquisition marks a pivotal step in unlocking the full value potential of Water Technologies, a growth booster identified as a priority in our GreenUp strategic plan, and a segment where we are already a market leader. Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities. This move is especially crucial given the urgent and rapidly evolving needs of the market, allowing us to respond faster and more effectively to emerging opportunities and challenges," said Estelle Brachlianoff, Veolia’s Chief Executive Officer.

“We are proud of WTS’ achievements since our investment in 2017, as it has grown into a global market leader in water technologies. Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation. We are grateful for the close collaboration with the management teams at WTS and Veolia, and we wish them every success in this next chapter," said Albrecht von Alvensleben, Managing Director, Head of Private Equity Europe at CDPQ.

Apart from cost savings, full ownership will enable Veolia to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with its Green Up strategic plan.

CDPQ exits at a nice return and can redeploy that capital elsewhere.

This is what I call a successful joint venture that went well for all parties.

In other related CDPQ news, La Presse reports that CEO Charles Emond appeared before the Quebec National Assembly to state there are no plans to export the REM to the United States.

He also said the Azure India bribery scandal that plagued the organization last year was isolated to three former employees and that the toll road projects in India are profitable. 

You can read the entire article here and I will just say that CDPQ needs to focus on the REM here to make sure it addresses all operational glitches as there are too many issues that impact service.

As far as the India bribery scandal, well, let's hope it is an isolated case that never repeats itself ever again.

Charles Emond stated this at the National Assembly: "There is no perfect system for detecting the behavior of three former employees who decided to act through collusion outside of the Caisse's systems." 

That may be true but there should be checks and balances all the time to detect and prevent fraud.

To be blunt, no pension fund can afford to be embroiled in any bribery scandal anywhere, especially a global investor like CDPQ.

Below, Veolia CEO Estelle Brachlianoff celebrates 170 years of innovation (as you will notice, video uses AI to communicate in many languages, turn on closed captioning for translation). 

Very impressive company cleaning water all over the world.

Harrisson Connery of PERE reports that Ares’ Arougheti sees tariffs will boost real estate values, transaction activity:

As tariff-related uncertainty casts a shadow over global property markets, Ares Management chief executive Michael Arougheti said his firm’s real estate strategies stand to benefit from the disruption. 

“We continue to believe that this is an opportune time for continued growth in our real estate business,” said Arougheti on the Los Angeles-based manager’s first-quarter earnings call this week. “Tariffs should drive up construction costs, which might constrain supply in markets that are already supply-constrained. This, coupled with a decrease in cost of capital and lower interest rates should improve values of real estate held and spur transaction activity.”  

Arougheti’s comments came as Ares reported $3.9 billion in fundraising for its real estate strategies in the quarter, up from just $400 million for the same period last year.  

It was Ares’ first quarterly update since finalizing its $3.7 billion acquisition of Singapore-based logistics and data center specialist GLP Capital Partners’ non-China business, and Ares’ revised portfolio metrics reflect the scale of that transaction. Its real assets platform now manages $124.2 billion in assets, Ares reported, up from $75.3 billion at the end of 2024. 

The GLP deal significantly boosted Ares’ regional footprint as well, particularly in Japan and Southeast Asia, and the manager’s first Japanese data center development fund attracted $1.5 billion in commitments in the first quarter, Arougheti said, adding that he anticipates a final close “in the near term.”  

Ares’ American real estate equity real estate funds produced returns of 1.8 percent for the quarter and 7.3 percent over the past 12 months, and its European real estate equity strategies produced returns of 0.2 percent last quarter and 1 percent over the prior year. It deployed $3.3 billion into real estate assets in the quarter, up from $500 million in the first quarter of 2024. 

Arougheti’s optimism stands in contrast to some of the prevailing concerns held by other private real estate managers that tariffs will bring further pain to the industry. Investors and managers alike have told PERE that Trump’s on-again, off-again policies would make underwriting all but impossible in the near term. The potential for prolonged transaction paralysis helped contribute to a record secondaries fundraise for New York-based StepStone Group last week, according to Jeff Giller, the manager’s head of real estate.   

Arougheti said the macro-environment has not impacted his outlook on logistics and data center assets, for which he believes there is strong demand, and added that US tariffs could drive more volume towards Ares’ distribution businesses in Japan.  

“There is a modest shift of investor interest and appetite away from the US markets,” he said. “So I could envision that if we continue to be in that type of environment, that the opportunity to offer non-US product in Japan and in our European distribution business could actually catch a stronger bid here and be a net beneficiary.”

Ares's co-founder Michael Arougheti is optimistic on real estate, private equity and private credit and believes his firm stands to benefit from any severe dislocation.

Speaking from the Milken Institute conference, he also stated that tariffs are unlikely to trigger a sharp uptick in private-equity-owned companies failing to repay their loans.

Things are going very well for Ares Management. Silas Sloan of Secondaries Investor reports the firm is looking to close its third infrastructure fund and its secondaries fund is attracting a lot of capital too:

Ares Management is looking to close its third infrastructure fund soon with its secondaries business continuing to “generate significant investor interest”, chief executive Michael Arougheti said on the firm’s recent earnings call.

Ares Secondaries Infrastructure Solutions III crossed $2 billion in total commitments, doubling its predecessor, Arougheti said during the firm’s Q1 2025 earnings call on 5 May. The fund is expected to hold a final close this summer.

Arougheti’s comments mean the fund launched in 2023 has also hit its target, which is $2 billion, according to Secondaries Investor data. The infrastructure fund collected about $400 million in the first quarter, according to slides prepared for the earnings call.

In addition to the infrastructure fund, Ares Credit Secondaries I raised $475 million in Q1 and $700 million in April, bringing the total equity commitments in the strategy to $3 billion and exceeding the fund’s target, Arougheti said on the call.

Ares raised about $2.3 billion in Q1 across PE, credit, infrastructure and real estate. Overall, the firm raised more than $20 billion in the first three months of the year, which Arougheti said was the strongest first quarter of fundraising ever for the firm.

“As we think about fundraising for 2025 and how it could be impacted by the current market uncertainty, we believe that we’re well-positioned due to the strength in the institutional channel and the global diversity of our investor base,” Arougheti said on the call. “We have deep relationships with our LPs who tend to be repeat investors across our funds and strategies as they seek to consolidate with key relationships.”

Fundraising got off to a blazing start in 2025, collecting a total of $50.7 billion in Q1, according to Secondaries Investor data. It was a massive step up from the $10 billion raised in Q1 2024.

However, there’s more than meets the eye when it comes to that Q1 total, as nearly 60 percent came from Ardian’s $30 billion close on Ardian Secondary Fund IX in January. Without the behemoth fund, Q1 2025 secondaries fundraising would have seen its fourth-largest tally for total closed commitments across the first three months of the year since 2020.

Ares is a strategic partner to Canada's large pension funds and institutional funds all over the world. Therefore I would pay attention to what this firm is doing and what its CEO and co-founder is saying. Below, Ares Management CEO and co-founder Michael Arougheti discussed the market impact of trade tariffs, investment in China markets, investors taking shelter in credit markets and where he sees “massive opportunity” for private equity. Arougheti spoke with Sonali Basak on the sidelines of The Milken Institute Global Conference in Beverly Hills, California.

Also, Michael Arougheti joins CNBC's 'Squawk on the Street' to discuss macro outlooks, growth expectations for Ares, and more.

Lastly, Blackstone President Jon Gray says he expects some countries will strike trade deals with the US “fairly soon,” and the effective tariff rate will be around 10%. Gray says the uncertainty around a trade war is likely to slow down GDP growth. He also talks about the AI revolution, real estate and inflation in the US. He speaks to Bloomberg's Sonali Basak at the Milken Conference. 

All great interviews, worth listening to their views.

CDPQ's Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability, Marc-André Blanchard, received the 2025 Testimonial Dinner Award on April 24 in Toronto. 

In his acceptance speech, Mr. Blanchard reflected on the urgent need for engagement, trust and partnership in solving the most pressing challenges of our time.

The former diplomat shared insights from his time at the United Nations, and called for public institutions to refocus on results, for silos to be broken across sectors and for trust to be rebuilt — drop by drop — through collaboration and engaged action:

I want to begin with just one word — gratitude, but gratitude in three parts. First, the five distinguished Canadians with whom I have the privilege of being honored tonight, they each inspire me.

Anil Arora. Anil is a legend amongst the global statistician community, I saw it with my own eyes at the UN.

The honourable Elizabeth Dowdeswell, a life dedicated to building and strengthening resilient local communities in Canada and around the world.

Chief Crystal Smith, your focus on economic reconciliation and building innovative partnerships is exactly what we need, not only for our national reconciliation, but also globally, for a more sustainable world.

Steve Paikin, last week’s debate reminded us how lucky we have been to have had you as a pillar in journalism and in our country for so long.

And Alfred, well, your optimism and generosity and focus on action will bring all of us somewhere else.

Second, gratitude to this room, to this community, to the Public Policy Forum. And allow me a special thanks, that’s never easy to do, to my wife Monique, merci.

Our sons, Adrian and Laurent, who are here tonight. This is my family. (In French: I would never have been here without you. You are my north star.) Thanks also to all of my friends here and my former colleagues, whether from McCarthy or from the public service or at CDPQ, or all of the organizations, my alma mater. Thank you. I’ve been so lucky in my life that my life has crossed your paths, and thank you for being here.

And third, I’m grateful for the opportunity to share some of my thoughts. And don’t worry, they’re not that long. It’s a gift, and I’m deeply thankful to all of you for giving me the reason and the space to pause, reflect and share.

The first thing I recognize is this — despite our deeply troubling times, like most of you, I’m certain I stand before you as someone who remains deeply, deeply hopeful in our future. To state the obvious, the challenges that brought me into public policy and public service, the kind that shaped my purpose, are today even more complex, more urgent and more intertwined than ever before. Never has the distance between our ideals and our actions been so radically exposed, so consequential, and so necessary to bridge.

Well, I happen to know a thing or two about idealism. You know, after all, I served in the halls of the United Nations for nearly five years. And when I arrived in the spring of 2016 there was so much hope. The world had just adopted the sustainable development goals and the Paris Accord, the world would finally get to work on two of its biggest and most pressing challenges — inequality and climate change. Then, within a few months, Brexit, President Trump, a few years later, the pandemic, Syria, Ukraine.

So, I’ve lived through the great declarations and stirring speeches. I’ve also lived through the disappointments left by our institutions’ inability to deliver what is being promised to citizens. This disappointment is felt in Canada and almost everywhere else in the world. Throughout the world, it has eroded the trust in our democratic institutions. And globally, the multilateral institutions so dear to Canada are being sidestepped without much reaction by the populations.

A friend of mine, Baroness Valerie Amos, the Master of University College of Oxford, recently said people need to see the difference that institutions make in their lives, and they need to have a mechanism that enables them to have an influence on those institutions. So how do we get our institutions to deliver for the people on the ground? How do we get from our idealism and our values to results?

Well, to me, a big part of the answer is about engagement. We need results. To get results, we need people invested in the kind of change they want to see. I can think of three rules of engagement that if applied, would deliver results faster, and of scale.

First, as I mentioned, engagement must be focused on results. Populism is not an anomaly. It’s a symptom, a warning sign of deeper democratic fatigue. Populism can only thrive in the void left by a lack of real results, in the absence of meaningful, visible change in people’s lives. To succeed in delivering faster, we need to remember that excellence in public policy does not require perfection. It requires progress, delivery and results.

Engagement, therefore, must be redefined, not as dialog alone, or even worse, a process, but as a deliberate, measurable pursuit of relentless impact.

Second, engagement must break down the silos and lead to innovative partnerships of the kind we heard just before. Well, this is tougher than it sounds. And to my dear friends of the public sector, my public sector colleagues, let me tell you a well-kept secret of the private sector. The private sector has silos, too.

In today’s world, with this climate, this economy, this global uncertainty, the real breakthroughs, the ones that will shape the next generation, will come when both sectors, public and private, start truly collaborating.

Well, let me brag a little bit. So I promise, I’ve been a citizen of Toronto, I promise not to make any explicit comparison with the Eglinton line here in Toronto. But I can offer no better example than the REM (Réseau express métropolitain) in Montreal, a very innovative partnership between CDPQ and three levels of government, various Crown corporations and the private sector, involved in delivering in a very short time — started the construction in 2018, first line going up in 2023 at reasonable cost — 67 kilometers of light rail train. If there had been no trust, there would have been no REM.

Which leads me to my third and final rule. Engagement must be built and rebuilt on trust. They say that trust is earned in drops and lost in buckets. And in recent years, here at home and around the world, we’ve watched too many of those buckets spill over. There is no shortcut to trust. There is only the steady, honest, often uncelebrated, work of listening, of engaging with people who disagree with us, not thinking we know better, of standing in someone else’s shoes, of doing the right thing and the right thing is often not theoretical perfection, but a good old Canadian compromise, even when it’s hard. Drip by drip. Act by act.

As we look to the future, please remember this. Every grand plan, every vision to reinvigorate our democracy, to renew our economy or realign our world will demand deep collaboration and even deeper trust. Without that trust, we’re left with talk, with the illusion of progress and none of the results. The reality is that listening builds trust and relationships. Trust and relationships accelerate action. And engagement leads to impact.

So thank you from the bottom of my heart for this honour, really. And let’s never forget that there is no challenge that we cannot overcome. After all, together we’ve built the best country in the world.

Vive le Canada et merci beaucoup.

Great speech by Marc-André Blanchard, eloquent, short, optimistic, striking the right balance between idealism and realism.

He cites the example of the REM where three levels of government were involved and nothing would have gotten done if there was no trust. 

He correctly notes:

“In today’s world, with this climate, this economy, this global uncertainty, the real breakthroughs, the ones that will shape the next generation, will come when both sectors, public and private, start truly collaborating.” 

And ends on this note:

As we look to the future, please remember this. Every grand plan, every vision to reinvigorate our democracy, to renew our economy or realign our world will demand deep collaboration and even deeper trust. Without that trust, we’re left with talk, with the illusion of progress and none of the results. The reality is that listening builds trust and relationships. Trust and relationships accelerate action. And engagement leads to impact.

Well, Marc-André Blanchard and his team at CDPQ are certainly doing their part to engage and lead to impact on responsible investing.

I recently covered CDPQ's 2024 Sustainable Investing Report where they exceeded their targets here.

Below, Marc-André Blanchard accepts the 2025 Testimonial Dinner Award. Great speech, well done.

Sean Conlon and Hakyung Kim of CNBC report Dow jumps 500 points, S&P 500 posts longest win streak in 20 years as stocks claw back tariff losses:

Stocks rose on Friday as Wall Street digested a better-than-expected nonfarm payrolls report for April, which eased recession fears and lifted the S&P 500 for its longest winning streak in just over two decades.

The S&P 500 advanced 1.47% and closed at 5,686.67. This marked the broad market index’s ninth consecutive day of gains and its longest winning run since November 2004. The Dow Jones Industrial Average jumped 564.47 points, or 1.39%, to end at 41,317.43. The Nasdaq Composite gained 1.51% and settled at 17,977.73.

With Friday’s surge, the S&P 500 has now recovered its losses since April 2, when President Donald Trump announced his “reciprocal” tariffs. This comes a day after the tech-heavy Nasdaq accomplished the same feat.

Payrolls grew by 177,000 in April, above the 133,000 that economists polled by Dow Jones had anticipated. That figure was still down sharply from the 228,000 added in March but much better than feared after recession worries ramped up last month. The unemployment rate stood at 4.2%, in line with expectations.

“Markets breathed a sigh of relief this morning as the jobs data came in better than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “While recession fears are still simmering on the back burner, the buy-the-dip dynamic can continue – at least until the tariff pause runs out.”

Investors were already upbeat prior to the strong jobs report after China said that it is evaluating the possibility of starting trade negotiations with the U.S. Still, Chinese authorities reaffirmed their belief that the U.S. should remove all unilateral tariffs, saying in a statement that “if the U.S. wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs.” Later in the day, a report from The Wall Street Journal suggested that Beijing is open to trade talks.

The Street was also mulling over earnings reports from two “Magnificent Seven” members. Apple slid 3.7% after posting fiscal second-quarter revenue from its services division that fell short against analyst estimates. Additionally, the iPhone maker said it expects to add $900 million in costs in the current quarter due to tariffs. Amazon shares, meanwhile, were marginally lower after the company issued light guidance, highlighting “tariffs and trade policies” as factors.

“We’ve already seen how financial markets will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” Zaccarelli also said.

Stocks have made an incredible comeback since Trump announced last month that’s he’s temporarily reducing his new tariff rates for most countries to 10% for 90 days. The market has especially picked up steam lately, leading to the S&P 500′s winning streak, as solid earnings have come out.

All three major averages posted their second positive week in a row. The S&P 500 added 2.9%, sitting more than 7% below its February high after at one point being down nearly 20%. The Dow posted a 3% advance on the week, while the Nasdaq added 3.4%.

‘We’ve passed peak tariff tantrum,’ InfraCap’s Jay Hatfield says

The recent sell-off spurred by worries around President Donald Trump’s tariff plans may be over, said Jay Hatfield of Infrastructure Capital Advisors.

“We think we’ve passed peak tariff tantrum,” the firm’s chief executive said in an interview with CNBC, adding that he has a year-end target on the S&P 500 of 6,600. That implies nearly 18% upside from Thursday’s close.

Hatfield also thinks there’s going to be a summer rally once the market gets through a “seasonally weak” May-to-June period. That said, he doesn’t believe the S&P 500 will rally past the 6,000 level until most concerns among investors have been resolved.

“We think there’s three areas of uncertainties, not just tariffs but also Fed policy and tax policy,” he added. “We don’t think we’re going to bust significantly above 6,000 until we get at least two of those three pretty well defined.”

It was a very strong week in the stock market led by mega cap tech stocks like Microsoft and Meta which posted solid earnings:

But the real story again this year is Palantir which was up over 300% last year and is flying high once again this year:

Incredibly, Palantir shares hit a low of $66 on April 7th and have since ripped higher and are right on the cusp of making a new 52-week high.

All this action spurred the Nasdaq higher this week but it's still off its 52-week high:

 Nonetheless, all the talk of tariffs, recession, the end of American exceptionalism looks silly when you look at the S&P 500 which has now recovered all its losses since Liberation Day (April 2nd). 

However, the US dollar remains weak and some claim there's more downside to go (I'm not in that camp and believe the selloff in the US dollar was way overdone):

More worrisome, long maturity US Treasuries are also struggling to rally as investors weigh the real possibility of stagflation ahead: 

Also, despite the recent selloff which I foresaw, gold shares remain in a solid uptrend:

Not surprisingly, when you look at the top performing US large cap stocks, gold shares figure prominently (a few Canadian gold companies there) but it's a mixed bag with Palantir and biotechs I track closely like Verona Pharma, Summit therapeutics and TG Therapeutics. 

 

Apart from a few stocks however, biotech shares remain well off their 52-week high even after rallying massively the last couple of weeks:

Still, I see a few great opportunities in biotech as long as RISK ON markets gain traction but you really need to dig deep, pick your spots and know the companies and risks very well.

The big question that still persists is whether there is a slowdown in the US economy and are we in a recession.

This week, the US economy contracted for first time since 2022 as imports surged but today's US jobs report showed defied expectations as nonfarm payrolls increased a seasonally adjusted 177,000 for the month, slightly below the downwardly revised 185,000 in March but above the Dow Jones estimate for 133,000. 

The unemployment rate, however, stayed at 4.2%, as expected, indicating that the labor market is holding relatively stable.

The jury is still out in terms of recession but some indicators like housing activity are already pointing to one and I would encourage my institutional readers to listen to Francois Trahan's latest conference call entitled "It's Different This Time...Legitimately!".

Francois thinks all roads lead to stagflation and things will come to fruition in the second half of the year. 

Alright, let me wrap this up and post some great interviews below.

First, Nicolai Tangen, the head of Norway’s $1.8 trillion sovereign wealth fund, discusses the outlook for global markets amid recent trade policy upheaval and what that means for the fund's US investments. He talks with Bloomberg's Francine Lacqua in Oslo.

Tangen also spoke to CNBC International discussing investments in the US at the Norwegian sovereign wealth fund's annual investment conference.

Third, Mike Wilson, Morgan Stanley, joined 'Closing Bell' on Thursday to discuss what markets need to see to indicate a more sustained recovery from April's lows, if the equity rally is sustainable, and much more.

Fourth, Adam Parker, Trivariate Research founder, joins 'Closing Bell' to discuss the most recent news that sticks out to Parker the most, investor's attitude towards equity markets, and much more.

Fifth, David Zervos, Jefferies chief market strategist, joins CNBC's 'Squawk on the Street' to discuss outlooks on tech.

Sixth, Bob Elliott, Unlimited CEO and Adam Kobeissi, The Kobeissi Letter editor-in-chief, join 'Closing Bell: Overtime' to discuss market rally, their outlook for stocks and Fed day.

Seventh, Jeremy Siegel, Wharton School professor of finance, joins CNBC's 'Closing Bell' to discuss market outlooks.

Lastly, Bill Smead, Smead Capital Management, joins 'The Exchange' to discuss the mood in Omaha ahead of Berkshire Hathaway's annual investor meeting, the market opportunities, and much more.

Jasmine Kilman of Connect CRE reports Hoffman & Associates, Madison Marquette sell The Wharf to PSP Investments:

Hoffman & Associates and Madison Marquette have sold their stakes in The Wharf, a mile-long 3.5 million-square-foot megadevelopment waterfront neighborhood in Washington, D.C., to Public Sector Pension Investment Board (PSP Investments).

PSP Investments, which has been a financial equity partner in the development since 2014, will own The Wharf in its entirety. Hoffman & Associates and Madison Marquette developed the $3.6 billion riverfront neighborhood located along the Potomac River, just south of downtown D.C.

“Since 2006, we’ve led The Wharf’s transformation from vision to reality, creating a dynamic, world-class neighborhood that includes everything from concert venues and homes to restaurants, parks, piers, and unparalleled waterfront access,” said Monty Hoffman, Founder & Chairman of Hoffman & Associates. “We have full confidence in our partner to carry forward our shared vision for The Wharf as we continue expanding communities across the DMV and beyond.”

With this sale, The Wharf marks the successful completion of its evolution from a transformative development to a nearly fully leased neighborhood offering residential, office, retail, and public space. 

In an exclusive interview, Monty Hoffman (featured above) discusses the sale of the project conceived two decades ago. You can read that Washington Business Journal article here (subscription required).

You can also read a lot more about The Wharf here and see many pictures of this exclusive waterfront property.

 As stated above, PSP Investments, which has been a financial equity partner in the $3.6 billion development since 2014, will own The Wharf in its entirety. 

That's quite an impressive asset to own and I guess the developers are exiting the project after many years of developing it.

In other recent news, Freschia Gonzales  of Benefits and Pensions Monitor reports PSP and partner exit as offshore wind company changes hands: 

Havfram, an offshore wind installation company established in 2021 by Sandbrook Capital and PSP Investments, is set to be acquired by global dredging and marine engineering group DEME. 

The transaction, valued at approximately €900m, is expected to close by the end of April, subject to customary closing conditions. 

Sandbrook Capital and PSP Investments formed Havfram to address growing demand for Wind Turbine Installation Vessels (WTIVs) among major energy companies.  

Since its founding, the company has developed into a key player in the offshore wind sector, with two state-of-the-art WTIVs under construction and a strong contract backlog to support some of the largest offshore wind projects. 

“We partnered with PSP Investments to build Havfram because we saw a unique market opportunity to provide the state-of-the-art vessels required to build today’s enormous offshore wind farms,” said Christopher Hunt, partner at Sandbrook Capital.  

He added that DEME will take over as the company enters its next phase. Hunt also noted that Havfram has grown significantly in recent years and generated financial returns for investors. 

Sandiren Curthan, managing director and global head of Infrastructure Investments at PSP Investments, said the investment demonstrates the firm's broader capabilities and its commitment to investing in essential assets within the renewables value chain.    

Goldman Sachs acted as financial advisor, while Thommessen served as legal advisor to Sandbrook Capital and PSP Investments. 

PSP investments issued this press release on this deal:

London, UK; Montreal, QC; Oslo, Norway — April 9, 2025 — Sandbrook Capital, a private investment firm focused on building leading climate infrastructure companies, and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors, today announced the signing of an agreement to sell Havfram, an international offshore wind infrastructure company, to DEME (Euronext: DEME), a global leader in offshore energy and marine engineering. 

Established in 2022 through a strategic partnership between Sandbrook Capital and PSP Investments, Havfram was created to provide critical offshore wind installation capacity to the world’s leading energy companies. Under their ownership, Havfram has evolved into a world-class operator of Wind Turbine Installation Vessels (WTIVs), with two state-of-the-art vessels currently under construction and a strong contract backlog to build some of the largest offshore wind farms. 

“We partnered with PSP Investments to build Havfram because we saw a unique market opportunity to provide the state-of-the-art vessels required to build today’s enormous offshore wind farms” said Christopher Hunt, Partner at Sandbrook Capital. “In just a few years, Havfram has become one of the most important players in the offshore wind industry. We are proud of what the team has achieved and the positive financial returns delivered to our investors.  DEME will be an outstanding steward of the company in its next phase of growth.” 

“Our investment in Havfram reflects our broader capabilities and commitment to invest in assets essential to the renewables value chain, while generating strong risk-adjusted returns,” said Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments. “We are proud to have partnered with Sandbrook Capital and with the Havfram team to build a fleet of next generation WTIVs.” 

“The support and long-term vision of Sandbrook Capital and PSP Investments have been instrumental in building Havfram into what it is today,” said Ingrid Due-Gundersen, CEO of Havfram. “We’re incredibly excited to join forces with DEME, a global leader with a shared mission to accelerate offshore wind deployment. Together, we will play a major role in enabling the energy transition around the world.”  

The transaction, valued at approximately € 900 million, is expected to close by the end of April 2025, subject to customary closing conditions. 

Goldman Sachs served as financial advisors and Thommessen served as legal advisor to Sandbrook Capital and PSP Investments. 

About Sandbrook Capital
Sandbrook Capital is a private investment firm dedicated to building the next generation of climate infrastructure companies. Founded by a team of seasoned investors and operators, Sandbrook partners with exceptional management teams to grow sustainable businesses that deliver attractive financial returns and meaningful climate benefits. For more information, visit www.sandbrook.com.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$264.9 billion of net assets under management as of 31 March 2024. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.  

About Havfram
Havfram is a Norwegian offshore wind installation company providing critical services to the global renewable energy industry. With two newbuild WTIVs under construction and a robust backlog, Havfram is positioned as a leading player in enabling the deployment of next-generation offshore wind farms. For more information, visit www.havfram.com. 

I vaguely remember this deal but clearly PSP and Sandbrook Capital did a great job developing Havfram into a world class offshore wind installation company and are now selling it to DEME, a global leader in offshore energy and marine engineering. 

The transaction, valued at approximately € 900 million, is expected to close by the end of April 2025, subject to customary closing conditions.

Ingrid Due-Gundersen, CEO of Havfram states: “We’re incredibly excited to join forces with DEME, a global leader with a shared mission to accelerate offshore wind deployment. Together, we will play a major role in enabling the energy transition around the world.”  

I'd say this was a strategic win-win for all parties involved. 

In other related PSP news, David Casey, Editor in Chief of Routes, reports AviAlliance plans to invest £350M In AGS Airports overhaul:

AviAlliance plans to invest £350 million ($465 million) over the next five years to modernize AGS Airports, which includes Aberdeen, Glasgow and Southampton airports. 

The company also appointed Charles Hammond, former CEO of Forth Ports, as the new chairman of AGS.​

The investment marks the largest capital program since AGS was formed in 2014 and follows AviAlliance’s £1.53 billion acquisition of the airport group from Ferrovial and Macquarie in January. The funds will support terminal upgrades, airfield infrastructure improvements and energy efficiency initiatives across all three airports.​

Scotland's Glasgow Airport will undergo a transformation of its main terminal, expanding floor space to accommodate more airline gates and enhance retail and dining options. Aberdeen Airport, also in Scotland, will see airfield infrastructure enhancements, while Southampton Airport's terminal will be redeveloped.​

“This significant investment will not only enhance the fabric of our airports, it will enhance the role they currently play in facilitating trade and tourism and, importantly, in generating meaningful employment across the country,” AGS CEO Kam Jandu says.

Glasgow is the largest airport in the AGS portfolio, handling approximately 8 million passengers in 2024. Aberdeen followed with 2.3 million, while England's Southampton Airport served around 850,000 passengers during the year.

AviAlliance, a subsidiary of Canada’s PSP Investments, entered the UK airport sector for the first time with the AGS deal, part of a strategic pivot following its exit from Budapest Airport and amid ongoing challenges in Germany’s aviation market. The company maintains holdings in Düsseldorf and Hamburg airports in Germany, as well as Athens, Greece, and San Juan, Puerto Rico.

Soon after finalizing the acquisition, AviAlliance sold a 22% stake in AGS to U.S.-based Blackstone for £235 million, retaining a 78% majority share and full operational control. The deal provides AGS with a new financial partner while keeping AviAlliance as the lead on strategy and operations.

Despite the investment, AGS’ three airports face headwinds. Glasgow has struggled to keep pace with Scottish capital Edinburgh, now Scotland’s main international gateway. Aberdeen, long reliant on oil and gas traffic, is adjusting to a shifting energy landscape. Southampton, meanwhile, faces competition from nearby Bournemouth and Bristol airports.

However, AviAlliance stressed the long-term potential. “AviAlliance takes a long-term view across all the airports within our portfolio, and this investment will assist AGS in accelerating its plans for delivering a superior passenger experience and growing connectivity,” AviAlliance Managing Director Gerhard Schroeder says.

“We are looking forward to working with AGS’ regional and national partners over the coming years to realize the full and undoubted potential of Aberdeen, Glasgow and Southampton airports.”

Recall, back in January, PSP announced the completion of its acquisition of AGS Airports, the operator of Aberdeen, Glasgow and Southampton airports from Ferrovial and Macquarie for an enterprise value of £1.53 billion.

More recently, Blackstone announced that Blackstone’s infrastructure strategy for individual investors has agreed to acquire a minority stake of 22% in AGS Airports (“AGS”), a platform of high-quality freehold airports providing access to key UK markets, from AviAlliance for £235 million:

Blackstone’s investment, together with AviAlliance and PSP Investments, is intended to support the continued growth of the travel and tourism industries across the United Kingdom.

AviAlliance, one of the world’s leading airport investors and operators, will remain the majority shareholder in AGS with a 78% stake.

AGS handles over eleven million passengers annually and is the owner and operator of three critical UK airports: Glasgow and Aberdeen in Scotland and Southampton in England.

If Blackstone is getting an important minority stake, that's quite an endorsement of this deal.

What else? PSP took part in the C$7 billion equity investment into Rogers managed by Blackstone and also took part in the the restructuring of capital led by Temasek of  Ceva Animal Health (Ceva), the world's fifth-largest animal health company. See details of that here.

Lastly, on the organizational front, at the end of March, PSP announced a new CFO and CRO:

Montréal, Québec (March 27, 2025) – The Public Sector Pension Investment Board (PSP Investments) today announced the appointment of Caroline Vermette as Senior Vice President and Chief Financial Officer (CFO) of PSP Investments. PSP Investments also announced the appointment of Alexandre Roy as Senior Vice President and Chief Risk Officer.  

Caroline Vermette joins PSP Investments from National Bank of Canada, where she most recently served as Senior Vice President, Internal Audit, providing independent assurance to the Board and senior management on the effectiveness of the Bank’s risk management, governance, and internal controls. She brings over 20 years of experience in financial leadership roles, demonstrating a proven track record of strategic financial planning, risk management, and driving efficiency through technology and innovation. 

“The appointment of Caroline Vermette as CFO marks an exciting new chapter for PSP Investments", said Deborah K. Orida, President and Chief Executive Officer, PSP Investments. "Her wealth of experience in financial reporting, internal audit, and risk management, combined with her deep understanding of complex financial transactions and international accounting standards, will be instrumental in ensuring the continued financial strength and strategic direction of PSP Investments. Caroline will strengthen PSP Investments ability to navigate an increasingly complex global investment landscape and deliver on our mandate for our beneficiaries."

Alexandre Roy joined PSP Investments in 2007 and has long played a critical role in strengthening the organization's risk management function and portfolio construction process. Through progressively senior roles, culminating in his position as Senior Managing Director, Total Fund Management, where he developed and implemented the Total Fund approach. This approach treats all asset classes and investment activities as a cohesive unit and as such has optimized the investment process, enhanced portfolio performance, and improved risk management across the organization. Most recently, he also assumed interim responsibilities of the Chief Investment Office.  

“Alexandre’s exceptional talent and leadership has long been instrumental to PSP Investments in delivering value for our beneficiaries and advancing our strategic objectives. His appointment as Chief Risk Officer reflects his deep understanding of our business, his proven ability to develop and implement new approaches to strengthen our organization, and his unwavering commitment to safeguarding the integrity of our investment portfolio. I am delighted to welcome Alexandre to our Executive Committee and look forward to the valuable insights he will bring. I am confident that in this role, he will continue to strengthen our risk management framework and contribute to the long-term success of PSP Investments," added Ms. Orida. 

I've heard nothing but good things about Alexandre Roy and I'm sure Caroline Vermette is highly qualified and will be a great CFO. 

You can view all of PSP Investments' senior managers here including Arun Bajaj, the new Senior Vice President, Chief People and Corporate Development Officer.

Alright, I started off discussing The Wharf and morphed this into a PSP Investments' latest deals and organizational changes comment.

Below, a virtual tour of The Wharf, one of the most popular areas for visitors and tourists to check out during a trip to Washington.

Wendy Lee, Local 575 of the Ontario Public Service Employees Union (OPSEU/SEFPO) posted updates in the Healthcare of Ontario Pension Plan (HOOPP):

The Healthcare of Ontario Pension Plan (HOOPP) is one of the strongest defined benefit pension plans in Canada, helping Ontario’s healthcare workers build the foundation for a financially secure retirement since 1960. Serving over 475,000 members and 700 employers, they are committed to providing members with the lifetime pension members have earned and the peace of mind members deserve.

Annesley Wallace became President & Chief Executive Officer of HOOPP on April 1, 2025.  It’s exciting to see that a significant, high performing pension plan is now being led by a female executive.  The predominant membership of HOOPP contributors are female.

Prior to joining HOOPP Annesley was Executive Vice-President, Strategy and Corporate Development and President, Power and Energy Solutions at TC Energy. In her role, Annesley was responsible for leading and executing the development of TC Energy’s corporate strategy, corporate development activities and capital allocation process, as well as for all aspects of the Company’s power generation and unregulated natural gas storage businesses.

Before joining TC Energy in May 2023, Annesley served as Executive Vice-President and Global Head of Infrastructure at OMERS, overseeing a global team and portfolio of approximately C$34 billion in assets across sectors including energy, digital, transportation and government-regulated services. Previously, Annesley also spent time at SNC-Lavalin, focused on engineering, procurement, project controls and project management for their energy, infrastructure and power businesses.

Annesley holds a Bachelor of Science and Master of Science in Engineering from Queen’s University, and a Master of Business Administration from the Schulich School of Business, York University. Annesley is also a registered Professional Engineer in Ontario and a former recipient of Canada’s Top 40 Under 40.

On a more personal level, she grew up in Ontario.  She is also a mother of two twin boys – a working mother who understands the impact pensions has on all of us, for all of us.

During today’s discussions, Annesley stated her leadership belief is that “health care is a fundamental right that we must defend” and as such, she indicated that HOOPP is “uniquely positioned” to be “flexible and adaptable” in these uncertain economic times as HOOPP has “a strong foundation with significant expertise”.

The four key focal points of HOOPP moving forward are the following:

• Focus remains on long-term success to ensure pension security for members by maximizing the over value of HOOPP.
• Be well positioned to navigate a challenging geopolitical and economic landscape by increasing adaptability.
• Continue to prioritize that enable HOOPP to be both flexible and adaptive in less certain economic times.
• Maintain the belief that when Canadians have access to a secure retirement, all will benefit. There is an acknowledgement that our members’ pension dollars are a huge spending component of the economy.  Thereby pension incomes can lead to the creation of jobs.

HOOPP has not had to increase member contributions since 2004.  This is an important to highlight that there has been stable contributions for over 20 years.  HOOPP has also improved the online tool for survivors’ benefit plan.  The strength of HOOPP’s stance, is what a member accrues, it belongs to the member.  The two items that are revisited on an annual basis is the Cost of Living Adjustments (COLA) for pensioners.  HOOPP provided a COLA increase on April 1, 2024 of 3.40% and 1.83% on April 1, 2025. The contribution rates may also change from year to year.

There are currently 478,879 members and 134,000 retired members.  The average annual pension is $32,000 for a total of $3,3 billion benefits being distributed to retired workers annually.  There were 5,965 members who started their monthly pensions in 2024.

HOOPP is a very well diversified portfolio where the intention “is not to outperform the market” but ensure that funds are maintained for ongoing pension pay outs, shared by Annesley.  The HOOPP pension reviews potential investments and enter the right risk(s) in a very calculate for the long-term view.  Based on its firm foundation, HOOPP is able to take advantage of good investment opportunities, thereby making the plan more adaptable to change.

For those that interested in speaking with someone about HOOPP for their workplace, please feel free to connect with Bobby Argiropoulos, Public Relations at 416-459-5384 or via email at bargiropoulos@hoopp.com.

On LinkedIn, HOOPP's new CEO Annesley Wallace posted this five days ago:

I note the following:

This week, I had the opportunity to speak with leaders from Ontario Public Service Employees Union (OPSEU/SEFPO)’s Hospital Professionals Division at its 2025 Convention, discussing HOOPP (Healthcare of Ontario Pension Plan)’s commitment to providing healthcare workers in Ontario a reliable, stable pension for life. 

HOOPP is proud to serve the 25,000 OPSEU/SEFPO members under the Hospital Professional Division, who provide critical public health support across 84 hospitals every day. Thank you for having me!

So what's the big deal? Annesley Wallace meeting with members of HOOPP who are part of the Ontario Public Service Employees Union.

To me it is a big deal because Annesley Wallace officially started as the new CEO at the beginning of the month (she was there before to get the lay of the land as Jeff Wendling prepared to retire) and one of her first big presentations is with plan members to inform and reassure them.

Take note, if you want to be a great leader of a pension plan, always remember whose money you're managing and show them the respect they deserve.

And actions speak louder than words.

OMERS CEO Blake Hutcheson who Annesley worked with in the past once told me the part of the job he loves the most is talking to members and I believe him.

Anyway, time to watch the Montreal Canadiens and hope they win tonight.

Below, a reminder from five years ago of how dedicated HOOPP's members are and why it's important to safeguard their pensions. It's eerie watching this video, can only imagine how HOOPP's members felt back then.

Also, CNBC's Steve Liesman, Raymond James’ Ed Mills, Nationwide Mutual’s Kathy Bostjancic, and Fundstrat’s Tom Lee join 'The Exchange' to discuss what investors know about the economy and the markets.

The Canadian Press reports CPP Investments sells portfolio of private equity fund interests:

TORONTO — The Canada Pension Plan Investment Board says it has sold a portfolio of 25 private equity fund interests in North American and European buyout funds for $1.2 billion in net proceeds.

The board says the buyers are Ares Management Private Equity Secondaries funds and CVC Secondary Partners, the secondaries business of CVC.

Ares is a global alternative investment manager, while CVC is a global private markets manager focused on private equity, secondaries, credit and infrastructure.

The portfolio sold included primary commitments and secondary purchases made by CPP Investments in funds over 10 years old.

Dushy Sivanithy, CPP Investment’s head of secondaries, says the deal was part of its active portfolio management.

CPP Investments’ net assets totalled $699.6 billion at Dec. 31, 2024. 

CPP Investments recently issued a press release on this transaction:

London, U.K. (April 17, 2025) – Canada Pension Plan Investment Board (CPP Investments) today announced it has completed the sale of a diversified portfolio of 25 limited partnership fund interests in North American and European buyout funds to Ares Management Private Equity Secondaries funds (Ares) and CVC Secondary Partners, the Secondaries business of CVC.

Ares is a leading global alternative investment manager offering primary and secondary investment solutions across asset classes with over US$525 billion of assets under management, and CVC is a leading global private markets manager focused on private equity, secondaries, credit and infrastructure with €200 billion of assets under management.

CPP Investments’ net proceeds from the transaction, after certain costs and adjustments, were approximately C$1.2 billion. The transaction completed on 31st March 2025.

“This transaction was undertaken as part of our active portfolio management activities. As a systematic buyer and seller in the secondaries market, we see this sale as an attractive opportunity to optimize the construction of our portfolio,” said Dushy Sivanithy, Managing Director & Head of Secondaries, CPP Investments. “Ongoing management of our private equity commitments continues to realize strong returns for the CPP Fund.”

The portfolio of interests represents various primary commitments and secondary purchases made by CPP Investments in funds over 10 years old.

CPP Investments’ net investments in private equity totalled C$151.2 billion at December 31, 2024. The portfolio is invested in a wide range of private equity assets globally, focusing on long-term value creation through commitments to funds, secondary markets and direct investments in private companies.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2024, the Fund totalled C$699.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

So what's this all about? Why is CPP Investments, one of the largest allocators in private equity, selling stakes in private equity funds?

Dushy Sivanithy, Managing Director & Head of Secondaries at CPP Investments (featured above) states the following:

“This transaction was undertaken as part of our active portfolio management activities. As a systematic buyer and seller in the secondaries market, we see this sale as an attractive opportunity to optimize the construction of our portfolio. Ongoing management of our private equity commitments continues to realize strong returns for the CPP Fund.” 

What does he mean by active portfolio management? These aren't liquid stocks which you can trade in and out of, these are illiquid stakes in private equity funds that invest in private companies.

True but this is where the burgeoning secondaries market in private equity comes into play.

Back in 2004 when I was helping Derek Murphy set up private equity as an asset class at PSP Investments, the secondaries market in private equity was nowhere near as large and liquid as it is nowadays.

And when you sold stakes back then, it was because you were desperate and sold at deep discounts (10-20%).

Fast forward to 2025, a huge investor like CPP Investments calls top private equity funds like Ares and CVC to unload over $1 billion in fund stakes and this deal can get done in a few weeks and at a very reasonable discount (typically 5%).

But why is CPP Investments selling old fund stakes in private equity?

There are many reasons but my best guess is they are shoring up liquidity and diversifying vintage year risk.

In order to properly manage a huge C$151.2 billion private equity portfolio where funds make up 40% to 50%  and rest is co-investments, directs and secondaries, you really need to manage your liquidity and properly diversify your vintage year risk.

If you do not properly diversify vintage year risk, you can get killed on a bad year and good luck making up the shortfall.

Also worth noting that CPP Investments isn't the only large Canadian pension investment manager selling PE stakes.

Late last year, PSP and OTPP sold $1 billion plus in PE stakes.

I noted this when I wrote that comment:

Go back to read my comments on BCI's Jim Pittman on staying focused, liquid and agile in private equity and it selling $1 billion of PE holdings to Ardian as well as my comments on CDPQ's head of PE on vintage year diversification and managing liquidity and how it used secondaries market to address overallocation.

Jim Pittman, Martin Longchamps and the heads of private equity across Canada's large pension funds have been quietly selling underperfoming stakes at a small discount to free up monies to invest in better opportunities going forward.

The reason they are able to do this is because the secondaries market has matured and is widely used now to manage portfolio liquidity.

And it's been a tough couple of years in private equity and everyone is feeling the pinch.

These are tough times in private equity, exits are challenging, rates remain stubbornly high, costs are going up, and so on and so on.

It's still a great asset class but now more than ever, you better get the approach right by investing with top strategic partners and co-investing alongside them to reduce fee drag and really lean into them to leverage your size to get the best terms.

Canada's large pension investment managers are cutting back on purely direct investments and doing exactly that.

There's not much of a choice, you either do that or risk severe underpeformance in one of the most important asset classes to capture long-term returns.

So, trust Dushy Sivanithy, he's a smart guy, has tons of great experience having worked at Rede Partners, CDC Group and Pantheon before joining CPP Investments.

Earlier this year, he was named one of Private Equity News' most influential figures in secondaries:

Very talented guy who is also working for a more inclusive and diverse private equity landscape.

Alright, let me end it there, just remember this, the secondaries market is now huge and a lot more liquid, and top PE firms like Ares and CVC are great partners to have to unload fund stakes at a reasonable discount when these large allocators are diversifying vintage year risk.

Below, Cari Lodge, head of secondaries at CF Private Equity joins the Private Equity Podcast to discuss the astronomical growth in the secondaries market. 

Great discussion, listen to her insights."Being in the secondaries business, we see a lot of funds and we see a lot of what goes wrong in the private equity market that makes people want to sell things. One of the most common mistakes PE firms make is holding on to assets too long. If you look at the average holding period in the private equity market, it's gone from 5.7 years to 6.7 years. The secondary market exists because people want liquidity and we see it all the time."

Also, private credit secondaries has the potential to surpass private equity in deal volume over the longer term as more secondaries investors pursue yield and diversification amid market volatility.

Over the past year, several billion-dollar-plus deals have emerged in the credit secondaries space, including Coller Capital's recent acquisition of a $1.6 billion portfolio from American National and TPG Angelo Gordon's $1.5 billion continuation fund. Firms like Coller, Pantheon, Apollo Global Management and Ares Management have also launched dedicated credit secondaries strategies..

In this episode, Michael Schad, head of secondaries at Coller Capital, and Gerald Cooper, global co-head of secondaries advisory at Campbell Lutyens, speak with Americas Correspondent Hannah Zhang about the evolution of the private credit secondaries market and where the next opportunities may emerge.

"Most of the asset managers are sitting on tens of billions of NAV. So it lends itself to a secondary opportunity that is inevitably going to continue to grow and be of scale," Cooper said in the podcast. "I think as we look five to 10 years down the road, we are hopeful that we are going to see more specialised pockets of capital come into the space."

This too is a fantastic discussion and I agree, the private credit secondaries market will eventually eclipse the private equity secondaries market and this market is evolving very quickly. 

Listen carefully to both podcasts. I can assure you CPP Investments is a huge investor in both markets.

Layan Odeh and Paula Sambo of Bloomberg News report Omers’ Eric Haley retires in latest change within private equity:

The head of buyouts at Ontario’s pension fund for local government workers, Eric Haley, will retire and leave the firm at the end of the year in the latest change to the plan’s private equity business.

Haley will continue to lead the North American buyout team until the end of 2025, Don Peat, spokesperson for the Ontario Municipal Employees Retirement System, said in an email. “We are deeply grateful to Eric for his commitment to delivering on the Omers pension promise and his significant contributions to our private equity business and team culture.”

Omers has been revamping its private equity unit under Ralph Berg, who became chief investment officer in 2023. Last year, the Toronto-based fund halted direct private equity investments in Europe and opted to shift its strategy by investing alongside partners and external managers. The pension also launched a global funds strategy within a new group called Private Capital.

The $27.5 billion (US$20 billion) private equity portfolio was split, with Michael Block leading the global funds strategy and Haley overseeing the North American buyout program, the firm said at the time. It’s unclear whether Omers will replace Haley.

Haley’s departure continues a period of employee change within Omers’ private equity business. In March, Alexander Fraser, a former partner of a Temasek-backed fund, joined as global head of its private equity arm. He succeeded Michael Graham, who retired in February. Jonathan Mussellwhite, who had led private equity in Europe since 2018, left a few months before that.

For decades, the so-called Maple Eight have built up their deal teams to take a leading role in some private equity transactions. Now, some of them want to lean more on partners, as higher borrowing costs choked deal activity and diminished the allure of controlling portfolio firms.

Last month, Ontario Teachers’ Pension Plan said it’s re-examining its buyout unit, aiming to work more with partners rather than owning large or controlling stakes in private businesses as it seeks to mitigate risk. And Caisse de Depot et Placement du Quebec said in February that it will scale back its direct investing and team up with third-party managers.

I'll keep my comments brief as it's Election Day in Canada and I want to see coverage as results start coming in.

I'm hoping for sweeping change coast-to-coast but the polls suggest another minority government is on its way (sigh!).

Speaking of sweeping change, OMERS is rejigging its private equity unit.

The change has accelerated since Ralph Berg took over as CIO in 2023.

Berg has recently refocused the investment programs and in Private Equity he decided fund investments was the best route for Europe and Asia and stuck to buyouts in North America with more co-investments:

Private equity is the final piece of the puzzle with investments dominated by the buyout program. In September last year, after analysing performance and deal flow, Berg decided to switch to fund investing in Asia and Europe and to focus on buyouts in North America.

“I came to the view based on data and performance we don’t have the scale to afford the quality origination and asset management required to efficiently do control deals in Asia or Europe,” he says. “We decided to focus on our buyout efforts in North America.” That group employs around 65 people across New York and Toronto.

The fund also recently formed a new external funds management group within private equity, called private capital headed by Michael Block. This is where the historical group of OMERS Ventures, which had some success in financing pharma in particular, and a legacy portfolio in green tech, will now be housed. Through this new group it will continue to invest in life sciences and venture capital and invest with external partners in funds and co-invest.

OMERS also recently hired Alexander Fraser, a former partner of a Temasek-backed 65 Equity Partners to run its private equity arm. 

Well, to be blunt the writing was on the wall for Eric Haley who was promoted in 2022 to head the North American direct buyout group. 

Clearly there is an important shift in strategy going on, less purely direct buyouts, more co-investments with large strategic partners.

It's going on all over, not just OMERS, and I wrote about it last week when I covered why Canadian pension funds are cutting back on pioneering PE investments.

In short, I don't care if you're OMERS, OTPP, CDPQ or whoever, you are not going to compete with the top private equity funds in the world so it makes more sense co-investing alongside them on larger transactions to reduce fee drag.

OMERS' CIO Ralph Berg hinted at this to the Financial Times when he said: “[we] evolved our investment strategy over the last couple of years to explore different models and use funds where it is complementary”. 

I suspect they'll be using more and more funds where it makes sense and start curtailing their purely direct deals, especially in Europe and Asia.

Even in North America, it's a challenging environment.

One thing is clear, however, Ralph Berg is running the show at OMERS when it comes to investments and he's very performance driven and expects results.

CEO Blake Hutcheson doesn't get involved in these investment decisions but he too expects results and wants to make sure all departments are producing what is expected of them. 

Alright, let me wrap it up there but before I forget a few items related to OMERS.

First, Anca Drexler, former Head of Total Portfolio Management there is now the new CIO of Building Ontario Fund:

I congratulate her and think she'll be a superb CIO at Building Ontario Fund.

And OMERS CFO & CSO Jonathan Simmons is back it again this year, walking to raise funds for MS research:  

Jonathan raised more than $500,000 last year in cumulative funds for his 25th anniversary and if you'd like to support him, please do so by clicking here.

I was diagnosed with MS back in June 1997 right in the middle of writing my Masters' thesis in Economics at McGill. 

Back then, I flew to New Jersey to meet Dr. Stuart Cook who edited The Handbook of Multiple Sclerosis (my late aunt worked with him and arranged a meeting). 

At the time, there were only three drugs available to treat MS (Betaseron, Avonex and Rebif) and Dr. Cook convinced me to go on Avonex which lasted for eight years till I stopped using it because I saw no meaningful benefits.

Amazingly, the progress in research and new drugs over the last 28 years has been spectacular (especially for relapsing remitting MS, less so for progressive MS although there too there's progress). 

The good thing about MS is after many years, the disease stabilizes, there are a lot less or no inflammatory attacks but neurological deficits remain.

After almost 30 years, I can write my own handbook on MS but count myself lucky.

My biggest preoccupation these days is addressing my chronic SI joint pain which is debilitating and I am prepared to do radiofrequency nerve ablation which will cost me a pretty penny (there is no free healthcare in Canada, that's a myth).   

Anyways, I wish Jonathan all the best again this year, please feel free to donate here to help him raise his target funds.

Below, Blake Hutcheson, President and CEO of OMERS, recently addressed the Canadian Club Toronto for a discussion on today’s turbulent economic and political landscape.

Blake is a terrific speaker and I highly recommend you take the time to watch this.

Let me also wish him a happy belated birthday and wish him many more healthy years ahead.

I celebrated mine with my wife and 19-month toddler over the weekend but unlike Blake and my friends, I was jumping in and out of a playpen but did get to watch the Habs with some buddies last night eating pizza (too bad they lost).

Lisa Kailai Han and Sean Conlon of CNBC report S&P 500 closes higher for a fourth day in a row, notches 4% gain for the week:

The S&P 500 rose on Friday, adding to its strong gains for the week, as investors continue to navigate an evolving global trade landscape while major tech names got a boost.

The broad market benchmark ended 0.74% higher at 5,525.21, while the Nasdaq Composite added 1.26% to end at 17,282.94. The Dow Jones Industrial Average lagged, but managed to close 0.05%, or 20 points higher, at 40,113.50.

Alphabet rose 1.5% after the Google parent and “Magnificent Seven” name reported a beat on the top and the bottom lines for the first quarter. Tesla, meanwhile, popped 9.8%, while fellow megacap names Nvidia and Meta Platforms advanced 4.3% and 2.7%, respectively.

The major averages rose on the week, notching their second positive week out of three. The S&P 500 gained 4.6%, while the Nasdaq climbed 6.7%. The Dow has underperformed but still cinched a one-week advance of 2.5%. With these latest gains, Nasdaq is now slightly positive for the month, but the S&P 500 is down 1.5% month to date. The Dow has fallen 4.5% so far in April.

Stocks have been taken for a wild ride in recent weeks, as traders try to make sense of the severity of President Donald Trump’s tariffs first unveiled on April 2. Mixed messaging around trade has added to the volatility.

China said Thursday that there were no talks with the U.S. on a potential trade deal. This came after the U.S. appeared to soften its stance on trade relations with China.

On Friday, Time magazine published comments from Trump that said he would consider it a “total victory” if the U.S. has high tariffs of 20% to 50% on foreign countries a year from now. But his Tuesday comments published Friday also said the president expects announcements on many deals to be coming “over the next three to four weeks.”

Adding to the confusion, Trump told reporters from Air Force One that he would not drop tariffs on China unless “they give us something.”

Still, going forward, Jay Hatfield, founder and chief investment officer of InfraCap, is optimistic that the worst of the tariff-induced uncertainty is over.

“The confusion about whether there’s really talks going on with China or not took some steam out of the market,” he told CNBC in an interview. “Our view is that we’ve reached peak tariff tantrum and so it’s likely to be more positive than negative.”

Hatfield believes the key driver for markets next week will be earnings from big hyperscaler firms such as Microsoft and Amazon.

Amalya Dubrovsky , Brett LoGiurato and Ines Ferré of Yahoo Finance also report Tesla surges 9%, S&P 500 gains for 4th-straight day in longest win streak since January:

US stocks rose on Friday, led by Big Tech, as President Trump's latest comments on tariffs kept trade tensions in focus.

The Dow Jones Industrial Average rose slightly. But the S&P 500 gained 0.7%, closing out its longest winning run since January. The Nasdaq Composite gained nearly 1.3%.

Tech stocks led a four-day rally on the S&P 500 and Nasdaq. AI chip maker Nvidia (NVDA) rose nearly 4%. EV maker Tesla (TSLA) jumped nearly 10% amid optimism that entry into the Indian market is near, and as the US said it would ease rules around self-driving technology.

The S&P 500 gained more than 4% for the week as investors focused on Trump's generally optimistic tone on trade talks and Fed officials hinted at possible rate cuts as early as this summer.

On Friday afternoon, Trump told reporters he won't drop tariffs on China unless "they give us something" in return. He also said another tariff pause is unlikely.

Meanwhile, reports circulated that China may pause its 125% tariff on some US goods, boosting market sentiment. Trump has claimed progress in negotiations with China, but China denied the existence of negotiations and demanded that the US lift its tariffs.

In individual movers, Alphabet (GOOG, GOOGL) stock rose after the company beat on earnings and announced a dividend hike and a $70 billion stock buyback. Intel's (INTC) stock fell despite beating earnings estimates. T-Mobile (TMUS) and Skechers (SKX) tumbled too, with both companies flagging the early effects of the tariffs.

Next week investors will hear from software giant Microsoft (MSFT) and social media platform Meta (META) as they report earnings on Wednesday. Tech giant Apple (AAPL) and e-commerce platform Amazon (AMZN) will also report earnings on Thursday.

It was a strong week in markets led by mega cap tech shares and other hyper growth stocks (performance below for the week): 

 Are we past peak tariff tantrum? Most likely but with Trump, you never know.

One thing is for sure, the US economy is a lot more resilient than most analysts think and all this nonsense on the "end of American exceptionalism" and the "death of the US dollar" was way overblown.

In my opinion, the US dollar which has been hammered this year, especially after tariffs were announced, is due for a big bounce up:

As far as the Nasdaq, it bounced big this week but remains below its 10 and 50-week exponential moving average:

It was really semiconductor shares (SMH) which propelled tech stocks higher this week but there too, hard to read more than a bounce for now:

 

There are a lot of bounces from deeply oversold levels but it doesn't mean new uptrend has resumed.

Having said this, if economic data and earnings prove to be better than expected in Q2,  this might be a decent quarter in the market.

I'm more concerned about Q3 and Q4 when delayed effects of tariffs kick in.

Interestingly, Reuters reports a JPMorgan survey shows consensus over weak dollar, US stagflation: 

There is a much higher risk of stagflation than recession in the U.S. economy over the next year, while the asset class most expected to outperform in 2025 is cash, according to the results of a JPMorgan survey published on Friday.

The trade war started by the U.S. administration of Donald Trump is seen by the majority as the policy with the most negative impact on the world's largest economy.

Three in five respondents believe U.S. economic growth will stall and inflation will remain above the 2% Federal Reserve target, with one-in-five respondents expecting inflation above 3.5%.

There is also consensus on the weakness of the U.S. dollar, with a majority expecting the euro at or above $1.11 to end the year, at least an 8% decrease for the U.S. currency this year.

"Our meetings were noteworthy for the differences in views between US investors compared to global investors on the consequences and market implications" of the regime change in the United States, JPMorgan said.

Cash is expected to remain expensive as yields on the U.S. 10-year note are not seen declining much from current levels. Over half of respondents believe the benchmark yield will be at or above 4.25% by the end of 2025.

Almost half of the respondents expect Brent oil prices to stabilize not far from the current price of $66 per barrel, while 3 in 10 foresee prices dropping to or below $60.

At 13%, more investors bet that emerging market equities will outperform other asset classes than the 9% who think developed stocks will.

Fifty-seven percent of respondents expecting Wall Street stocks to be the asset class with the largest outflows this year.

ESG investing was out of favor with 30% committed to maintaining their strategies while 42% showed no interest.

JPMorgan's survey was conducted on April 1-24 and 495 investors responded, according to the bank.

Note when this survey was conducted and the only reason I'm sharing it is because it will likely turn out to be spectacularly wrong.

Lastly, my friend and trading mentor Fred Lecoq who now lives in beautiful France sent me a Wall Street Journal article from Jason Zweig on the mistakes you're making in the stock market -- without even knowing it:

If you’re young, you know stocks and bitcoin can lose money at lightning speed. Just think of March 2020 or 2022. But your experience also tells you they will bounce back even faster and go on to new highs.

If you’re a middle-aged bond investor, you lived through almost nothing but falling interest rates and bountiful returns from 1981 through early 2022. In an earlier generation, the stock-market crash of 1929 haunted many investors, who shunned stocks for decades after.

Peter Bernstein, a financial historian and investment strategist who died in 2009, liked to say that investors have memory banks: the market returns collectively earned by people of similar age. Experience shapes expectations.

The problem is that your memory bank can deceive you in dangerous ways. Your experience of the past is a reasonable guide to the future only if the future turns out to resemble the portion of the past that you’ve lived through. And it often doesn’t.

Given the markets’ wild oscillations amid the uncertainty over President Trump’s trade policy, it’s worth looking at a few investing beliefs that your memory bank might hold—and asking whether they’re still valid.

Growth crushes value

For most of the past decade-and-a-half, value stocks—companies with lower share prices relative to their earnings and assets—have limped along, far behind higher-priced growth stocks like Apple, Nvidia and Tesla.

So far this year, though, Warren Buffett’s Berkshire Hathaway, the standard-bearer for bargain-hunting in the stock market, has gained 17.3%, bolstered by its $330 billion in cash. The technology-laden Nasdaq Composite Index is down 10.9%.

No matter how much the chaos over trade policy upsets the global economy, “the underpinnings of value will still matter,” says Rob Arnott, chairman of investment firm Research Affiliates. 

Value stocks should be less vulnerable to the market turmoil than growth stocks. “History shows that during times of turbulence, value beats growth,” says Arnott.

And for most of the past century, cheaper stocks outperformed more glamorous growth stocks—not the other way around, as your memory bank might suggest. If most of your stock portfolio is in growth, consider adding some value stocks.

The U.S. is the only place to be

For most of the past two decades, international markets ate U.S. dust as the dollar strengthened and American technology companies boomed.

That was then, this is now. In 2025, the MSCI ACWI ex USA Index, which tracks markets outside the U.S., is beating the S&P 500 by more than 14 percentage points.

If you’re a younger investor, your memory bank can’t tell you that international markets excelled for much of the past half century. From 1971 through 1990, the MSCI EAFE index of developed international markets outperformed the S&P 500 by an average of 4.2 percentage points annually, according to T. Rowe Price. For part of that period, overseas investments benefited from the tailwind of a declining dollar, which makes earnings in other currencies more valuable to American investors.

Even after their recent run-up, international stocks are relatively cheap, trading at less than 16 times earnings over the past 12 months and under two times book value, or net worth; U.S. stocks are at roughly 24 times earnings and more than four times book value.

If the dollar continues to weaken, that will strengthen overseas stocks; even if it doesn’t, the U.S. isn’t the only game in town. There’s a whole planet out there.

Buy the dips, and time will bail you out

The 1994 book “Stocks for the Long Run,” by finance professor Jeremy Siegel of the University of Pennsylvania’s Wharton School, argued that there’s rarely been a period of at least 20 years when stocks didn’t beat bonds after inflation.

Recent research by Edward McQuarrie, a business professor emeritus at Santa Clara University, shows that isn’t true. After spending years meticulously correcting the historical record of U.S. asset returns back to 1793, McQuarrie found numerous 20-year periods in which bonds beat stocks after inflation, most recently over the two decades ended in 2012.

None of this means you shouldn’t buy stocks or hold them for the long term. It does mean stocks aren’t guaranteed or foreordained to beat bonds, even over long periods.

Their returns are a function of interest rates, inflation and how expensive stocks are relative to bonds. Right now, stocks are far from cheap. Temper your expectations and focus on saving more, in case stocks don’t earn more.

Cash is trash

Many investors can’t forget the period from 2009 through 2021, when cash often earned less than nothing after inflation. It couldn’t even play defense.

In 2025, however, cash is playing offense. With yields exceeding 4%, Treasury bills and money-market funds are clobbering stocks so far this year. They’re also outpacing the official measure of inflation.

Gold always glitters

If you’ve recently invested in gold, you know it shines during times of crisis. Your memory bank might not include gold’s historically dull performance after rapid peaks in its price. Gold didn’t surpass its January 1980 record closing price of $834 until nearly 28 years later and didn’t rise above its August 2011 closing high of $1,892 for almost nine years after that. Even at its recent price of about $3,300 it has yet to exceed its 1980 closing high after adjusting for inflation, according to Dow Jones Market Data. Gold is gleaming now, but it could tarnish when calm returns.

As you examine your beliefs, be sure to consult the longest-term data available, to capture periods you didn’t experience personally.

Testing the validity of what’s in your memory bank won’t prevent you from being guided by your investment experience. It might help prevent you from being its prisoner.

 Great insights but this time is different, or is it?

At this point it’s not a question if we are in a recession, it’s a question how severe it will be, and how long will it last. pic.twitter.com/OpnzGbUrPo

— Michael A. Arouet (@MichaelAArouet) April 24, 2025

US stocks are barely pricing in an economic slowdown, let alone a recession. pic.twitter.com/98q5K7C6VW

— Peter Berezin (@PeterBerezinBCA) April 25, 2025

Alright, have great weekend everyone.

Below, Atlanta Fed President Dennis Lockhart joins 'Squawk Box' to discuss the state of the economy, impact on the Fed's inflation fight, impact of policy uncertainty, rate path outlook, and more.

Next, Craig Fuller, FreightWaves CEO, joins 'The Exchange' to discuss what's going on with freight activity.

Third, on a more positive note, Ira Robbins, Valley Bank CEO, joins 'Power Lunch' to discuss consumer sentiment, lending and the regional banking environment.

Fourth, Nouriel Roubini, chair and CEO of Roubini Macro Associates, says US exceptionalism will remain despite bad trade and immigration policies. He speaks during an interview on "Bloomberg The Close."

Firth, Adam Parker, Trivariate Research CEO, joins 'Squawk on the Street' to discuss earnings, Trump's trade war and the choppy market.

Sixth, 3Fourteen Research's Warren Pies, JPMorgan’s Stephanie Aliaga and Truist’s Keith Lerner, join 'Closing Bell' to discuss Trump's trade wars, the technical levels of a market bottom and their overall outlook. Take the time to watch this discussion.

Lastly, Aswath Damodaran, NYU Stern school of business, joins 'Closing Bell' to discuss his valuation of the Mag 7. Damodaran isn't throwing in the towel on Mag-7 stocks and I think he's right.