The Caisse de dépôt et placement du Québec is ramping up its emerging markets investment focus across asset classes including private equity after taking a hiatus for several years, according to Rashad Kaldany, executive vice-president in emerging markets. The Caisse has “re-oriented” its emerging markets strategy to focus on Latin America and Southeast Asia, Kaldany told peHUB. The institution will take “larger stakes” in fewer general partners for “more strategic engagement,” he said.
Canadian private markets investor Northleaf Capital Partners has wrapped up a new fund earmarked for opportunities in the global private equity secondary market, peHUB Canada has learned. Northleaf Secondary Partners, launched in 2013, has raised a total of US$255 million. That’s 27% above the US$200 million target set for it. Northleaf managing director Jeff Pentland said he believes the fund exceeded expectations because of the powerful forces that are currently driving secondary buying and selling worldwide, as well as the firm’s 11-year track record of investing in the space.
Canadian online payment processor Kubra, which is backed by private equity firm Clairvest Group, is up for sale, five sources told peHUB. Kubra, of Mississauga, Ontario, is a payment processor for utilities and companies in the insurance, financial services and healthcare sectors. First round bids for the company, which could sell for US$500 million, are due in June, sources said.
Sears Holdings Corp said it is considering the sale of its 51 percent stake in Sears Canada Inc, a move that could mean all of the Canadian department store operator goes up for sale, Reuters reported. Potential buyers include landlords and pension funds that want to use mall space occupied by Sears Canada, along with private equity and turnaround groups, such as Sun Capital, Hilco and Gordon Brothers. Large retailers are also potential suitors. Sears Canada, which has a market value of $1.6 billion, said it would cooperate "to achieve value for all shareholders."
Spring is here, along with a welcome thaw to end a brutal winter. That is perhaps an apt metaphor for private equity fundraising, which also appears to be warming up. The final close of Onex Partners IV LP, the fourth partnership of Canadian private equity firm Onex Corp, provides a timely example. Fund IV has been wrapped up with US$5.15 billion in total capital committed. According to Onex, it is the largest fundraise in its history.
Finnish commercial property owner Citycon said on Tuesday it plans to raise about US$550 million of new capital from owners as it looks to step up shopping centre acquisitions, Reuters reported. About half of the issue is planned to be offered to CPP Investment Board European Holdings, a subsidiary of Canada Pension Plan Investment Board, while the other half is directed to existing investors. Funding proceeds will be used in part to make a debt repayment and enable the company to pursue acquisitions and projects in Nordic and Baltic regions.
Brand development and licensing company Authentic Brands Group LLC is buying the rest of Marilyn Monroe’s estate that it did not already own, writes peHUB's Luisa Beltran. Financial terms of the deal, which is expected to close in June, were not announced. Based in New York, and with offices in Toronto and Los Angeles, Authentic Brands is owned by U.S. private equity firm Leonard Green & Partners. Leonard Green and Canadian private equity firm Knight’s Bridge Capital Partners partnered in a US$250 million investment in the company in 2010.
Brookfield Asset Management said on Wednesday cash flow slumped 29 percent in the first quarter because of a decline in realized gains from asset sales but the result beat estimates and the company raised its dividend by 7 percent, Reuters reported. Funds from operation (FFO), a measure of cash flow for real estate management companies, fell to $492 million, or 72 cents per share, from $689 million, or $1.03 per share, a year earlier, the Canadian property, power and infrastructure investor said.
Sterigenics, a sterilization services provider owned by U.S. private equity firm GTCR LLC, raised its buyout offer for Nordion Inc to US$758 million from US$727 million on Monday, after the Canadian medical isotope supplier received a rival bid from an unnamed buyer, Reuters reported. Ottawa-based Nordion said that its shareholders will now be entitled to receive US$12.25 per share in cash. GTCR acquired Sterigenics, a Deerfield, Illinois-based provider of sterilization services, in 2011.
Despite recent volatility in some regions, LPs view emerging markets as a key part of their private equity portfolios, according to a new survey by the Emerging Markets Private Equity Association. LPs plan to increase exposure to emerging markets over the next two years, especially in regions like Latin America and Southeast Asia, says EMPEA’s Global Limited Partners Survey 2014. EMPEA also announced the launch of its Limited Partners Council to help guide its research and educational offerings. Members include Pierre Fortier of the Caisse de dépôt et placement du Québec and Jesus Arguelles of Ontario Teachers’ Pension Plan.