CDPQ acquires stake in Hilco Global, will invest in special situations

Caisse de dépôt et placement du Québec (CDPQ) has acquired a 27 percent stake in Hilco Trading LLC (Hilco Global), a Northbrook, Illinois-based financial services firm and specialist in asset valuation, monetization and advisory solutions.

Terms weren’t disclosed for the deal, which initiates a long-term partnership between the two organizations.

It will see CDPQ target annual investments of about US$150 million, alongside Hilco Global, in distressed assets and other special situations.

CDPQ Vice President and Head of Private Equity Stéphane Etroy said the Canadian pension system’s long-term strategy aligns with Hilco Global’s role in transitioning “existing and often undervalued assets into profitable use.”

PRESS RELEASE

CDPQ and Hilco Global enter into a long-term partnership agreement

MONTRÉAL and CHICAGO, March 21, 2019 /PRNewswire/ – La Caisse de dépôt et placement du Québec (“CDPQ”) has acquired a minority stake in Hilco Trading, LLC (d/b/a “Hilco Global”), an independent financial services company. Following the transaction, CDPQ will own 27% of Hilco Global.

Through this new partnership, CDPQ will support the long-term strategy and continued growth of Hilco Global, a leading authority on asset valuation, monetization and advisory solutions across the world. Furthermore, CDPQ will target annual investments of approximately US$150 million, alongside Hilco Global, in distressed assets and other special situations.

Jeffrey B. Hecktman, Chairman, CEO and Founder of Hilco Global said, “Our new partnership with CDPQ is a perfect fit for us both strategically and culturally. Management at CDPQ understands that our goal was to find a financial partner that would support our long-term growth plans. CDPQ will serve as a key strategic investor in the capital-intensive deals that will fuel our continued expansion into several sectors including real estate, intellectual property, account receivables and commercial and industrial asset transactions with both healthy and distressed companies.”

“Our investment is motivated by Hilco Global’s excellent reputation, track record and strong management team,” commented Stéphane Etroy, Executive Vice-President and Head of Private Equity at CDPQ. “Hilco Global, whose role is to transition existing and often undervalued assets into profitable use, helps businesses to adopt new technologies and ajust to changing consumer habits. This is perfectly aligned with our long-term investment strategy.”

ABOUT HILCO GLOBAL
Hilco Global (www.hilcoglobal.com) is a leading diversified financial services company. The company offers a unique platform of more than twenty integrated business units located around the world and focused on three core corporate solution areas: Valuation, Monetization and Advisory Services. Each Hilco Global company is recognized as a leader in its respective field and is led by subject matter experts. Hilco Global has earned its reputation by helping both healthy and distressed companies identify and derive maximum value for their tangible and intangible assets for over thirty years. Hilco can also provide capital to help facilitate many transactions, demonstrating its willingness to back its valuations with its own capital. Hilco Global worldwide headquarters is based in Northbrook, Illinois and has over 600 professionals located in 11 offices around the world.

ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at December 31, 2018, it held CA$309.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. CDPQ is present in India through its subsidiary CDPQ India, located in New Delhi. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.