Deals: CPPIB to invest initial US$162M in SC Capital Partners

CPPIB is a new investor in SC Capital, and initially will provide up to US$162 million. The existing global institutional investor first put funds into SC in 2022.

“Japan stands out as one of Asia’s most attractive hospitality markets, driven by robust growth in inbound tourism alongside sustained domestic demand,” Gilles Chow, head of real estate, Asia Pacific, CPP Investments, said in a release. “This partnership gives us access to high‑quality opportunities and the execution capabilities to convert these tailwinds into long‑term value for CPP contributors and beneficiaries.”

Founded in 2004, SC Capital Partners oversees roughly US$9 billion in assets under management (AUM). Japan accounts for around 75% of its total AUM, and its portfolio includes data centres, logistics/industrial as well as hotel assets, operations and management.

CPPIB also announced in December it will purchase an indirect non-controlling interest in Castrol, a global leaders in lubricants. The acquisition is part of a US$10.1-billion transaction led by U.S.-based alternative investment firm Stonepeak, which is acquiring a majority stake in Castrol BP p.l.c. CPP Investments will invest up to US$1.05 billion to support the deal The transaction is expected to close by the end of 2026.

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U.S private equity firm Kelso & Co. has closed its purchase of a minority stake in Wellington-Altus Financial Inc. The nearly $400-million deal, first announced in October, gives Kelso & Co. a 25% interest in Wellington-Altus. In a release, Wellington-Altus said the sale received more than 99% of shareholder support. The firm now has more than 1,000 employees across Canada and upwards of $45 billion in AUM.

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Professional services firm MNP has announced several acquisitions across Canada. In Quebec, it’s adding MLSG LLP, a chartered professional accounting firm based in Montreal, effective Jan. 19. MLSG will eventually move to MNP’s Laval office. In Ontario’s Greater Toronto Area, it is merging with Kanish & Partners LLP. The firm’s leadership, Kanish Thevarasa and Julian Emmanuel, will join MNP as partners, bringing a team of 22 professionals, also effective as of Jan 19. And in Calgary, Kassam, led by founder Minaz Kassam and consisting of a team of nine tax professionals and staff, will become part of MNP as of Jan. 26.

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Global real estate investment manager BGO has made its first entry into purpose-built student housing in North America. It’s acquired a two-tower residential complex located in Edmonton, close to the University of Alberta, along with purpose-built student housing that was completed in 2023. The acquisition includes 272 residential units and 493 student beds, along with retail space and parking. The residential complex will be professionally managed by BGO Living and the student housing will be supported by Unilodge.

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Maples Group has launched a fund administrative service specifically for Canadian-domiciled alternative investment funds. The services will be provided through Maple’s Montreal office, the same team that specializes in servicing alternative asset funds globally. The launch coincides with rapid growth in Canada’s accredited investor market, which is projected to double between the years of 2024 and 2029, Maples Group said in a release. This new service supports local and global fund managers operating within Canada.

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Portage, a Toronto-based global investment platform has closed a deal with Point72 Ventures to take over management of select fintech assets. Point72 Ventures assets will be moved into a US$280-million continuation vehicle (CV), which will be managed by a Portage affiliate. Tripp Shriner, a partner at Point72 Ventures, will be joining Portage as a general partner to oversee the CV. Under the deal, Portage will also provide oversight for certain Point72 assets not included in the CV. The investment was led by Goldman Sachs Alternatives and supported by secondary investors.