Launched in mid-2019, Healthcare of Ontario Pension Plan’s infrastructure strategy is growing quickly through a mix of fund investments, co-investing and direct investments. It wants to grow this from CAD 2bn net asset value to CAD 20bn in the long term, Bianca Giacobone reports
Canadian public pension funds have been pioneers in the creation of infrastructure as an asset class. At least, that’s what Stephen Smith, managing partner of infrastructure at Healthcare of Ontario Pension Plan (HOOPP) thinks.
According to Inframation data, HOOPP is one of the top five largest pension funds in Canada, after surpassing CAD 100bn in assets under management (AUM).
The pension’s infrastructure investment strategy was launched in June 2019 and is now approaching CAD 2bn in infrastructure net asset value, through a mix of fund investments, co-investing and – like its larger Canadian compatriots – direct investments.
HOOPP has also completed four investments in individual companies, ranging from USD 200m to USD 450m. In December 2020, it invested in a USD 1.1bn NextEra Energy deal alongside KKR Diversified Core Infrastructure Fund, CAAT Pension Plan, and Varma Mutual Pension Insurance Company. In April 2020, it co-invested alongside North Haven Infrastructure Fund III into the USD 2.5bn acquisition of the Portuguese independent fiber network Fastfiber.
The other two deals, which have not been disclosed, are in the telecommunications sector in the US and in the transportation sector.
Smith, who became the first member of the infrastructure team after years of expanding HOOPP’s private equity portfolio, talks about the pension plan’s current infrastructure strategy and its next steps.
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