Toronto-based Brookfield Asset Management closed its second Strategic Real Estate Partners fund on US$9 billion, beating its US$7 billion target. Brookfield, as it has done in past funds, made a huge GP contribution in Fund II, kicking in US$2.3 billion. The firm closed its debut Strategic Real Estate Partners fund on US$4.4 billion in 2013.
Three consortia of Australian and international funds have submitted bids for a 50-year lease of the Port of Melbourne, Australia's biggest shipping container terminal, sources told Reuters. The state government of Victoria aims to raise at least A$5.3 billion (US$4.1 billion) before the end of 2016, as part of a broader Australian government privatization program to help cut debt and upgrade the country's infrastructure. Canada's Borealis Infrastructure Trust is a member of one of the bidding groups, the sources said.
Canada's second biggest public pension fund manager the Caisse de dépôt et placement du Québec said that Andreas Beroutsos had decided to step down as executive vice president, private equity and infrastructure, Reuters reported. The Montréal-based pension fund manager said he will stay on for a few months to ensure an orderly transition to his as yet unnamed successor and will continue to represent the Caisse on certain boards of directors.
Ottawa-based Mitel Networks Corp said it would acquire fellow voice and telephony gear maker Polycom Inc for about US$1.96 billion in cash and stock, satisfying a demand from U.S. hedge fund Elliott Management, Reuters reported. The combined company will have its headquarters in Canada and will operate under the Mitel name while retaining the Polycom brand.
The new head of private markets at Public Sector Pension Investment Board (PSP Investments) is off to a running start after being quietly hired by the system last fall. Guthrie Stewart, named PSP’s senior vice president and global head of private investments in September, was the pension fund’s point man on January’s proposed buy of AIG Advisor Group, a New York-based broker-dealer network. Stewart will likely focus on finding more such deals as PSP seeks to scale investment volumes to match up with its fast-growing asset base.
Oil and gas producer Pacific Exploration & Production Corp said its board has agreed to negotiate a financial restructuring involving Canadian private equity firm Catalyst Capital Group Inc and its creditors, Reuters reported. Pacific Exploration, which has defaulted on certain senior notes and credit agreements, said earlier this week that it has received proposals from third parties regarding the restructuring.
Canada’s newest private equity firm, Parallel49 Equity, was launched four months ago in a rebranding process initiated by its predecessor, Tricor Pacific Capital. Its story may be a case study of how founding partners can successfully pass the torch to a next generation of PE executives.
Members of the private equity fund industry are under increasing pressure from investors and regulators to enhance transparency in fees and expenses and other key aspects of their operations. In a PE Hub Canada exclusive, Torys LLP's Amy Johnson-Spina, Cameron Koziskie, Shannon Gotfrit and André Nance examine the factors that are driving this trend and how fund managers in North America are responding.
Swiss commodity miner and trader Glencore has agreed to sell 40 percent of its agricultural unit to Canada Pension Plan Investment Board for US$2.5 billion, the company's latest step to cut debt and soothe investor concerns about the impact of weak commodity prices, Reuters reported. The sale values the agricultural unit as a whole at close to the initially expected US$10 billion, including debt and inventories. Glencore expects the deal to close in the second half of 2016.
Corus Entertainment Inc this month closed its $2.65 billion buy of Shaw Media Inc. In a PE Hub Canada feature, Catalyst Capital Group's Newton Glassman, Gabriel de Alba and Jim Riley explain why the Toronto-based private equity firm, a Corus minority shareholder, opposed the deal. They also discuss why it raises concerns about how capital market transactions are regulated in Canada.