The Ontario Municipal Employees Retirement System (OMERS), through its investment arm OMERS Strategic Investments, has entered into a co-investment agreement with Japan’s Government Pension Investment Fund (GPIF) and the Development Bank of Japan (DBJ). The arrangement allows for GPIF and DBJ to participate in deal opportunities sourced and managed by OMERS’ funds. The first direct result of this initiative was a commitment of US$2.5 billion by GPIF and DBJ to the Global Strategic Investment Alliance (GSIA), a co-investment program managed by OMERS’ affiliate Borealis Infrastructure. Total capital committed to the GSIA now stands at US$11.25 billion.
OMERS Enters Co-Investment Agreement with Japan’s Government Pension Investment Fund and the Development Bank of Japan
Capital Commitments to the Global Strategic Investment Alliance Now Total USD$11.25 Billion
TORONTO, ONTARIO–(Marketwired – Mar 3, 2014) – OMERS, one of Canada’s largest pension plans, through its strategic investment arm OMERS Strategic Investments (OSI), has entered into a co-investment agreement with Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, and the Development Bank of Japan (DBJ). The co-investment agreement sets out a framework under which GPIF and DBJ may participate in a range of investment opportunities that are sourced and actively managed by OMERS through its various investment arms.
“We are honoured and pleased to be partnering with GPIF and DBJ in the pursuit of high-quality investments under a jointly developed program which recognizes OMERS direct drive, active investment management expertise. We value this strategic relationship as we continue to build trusted partnerships and extend our reach to attract investment opportunities globally,” said Jacques Demers, President and CEO of OMERS Strategic Investments.
The first direct outcome of the co-investment agreement is the participation by GPIF and DBJ, at a capital commitment of USD$2.5 billion, in the Global Strategic Investment Alliance (GSIA). The GSIA is a co-investment program developed by OMERS that deploys the expertise of OMERS infrastructure investment arm, Borealis Infrastructure, for the benefit of OMERS and its GSIA co-investment partners. The participation by GPIF and DBJ brings the total capital committed to the GSIA to USD $11.25 billion.
“The participation in the GSIA by GPIF and DBJ, alongside our other GSIA members including the Pension Fund Association of Japan and a consortium led by Mitsubishi Corporation provides a strong endorsement of both OMERS strategy of developing third-party capital relationships with like-minded institutional investors as well as the investing strength of our infrastructure arm, Borealis Infrastructure,” said George Cooke, Chair of the Board of Directors of OMERS Administration Corporation.
OMERS is one of Canada’s largest pension funds with over CAD 65 billion in net assets. It provides first-class pension administration and innovative products and services to almost 440,000 members. Almost one in every 20 employees working in the province of Ontario is an OMERS member. Through the OMERS Worldwide brand, our team of investment professionals uses a direct drive, active management investment strategy to invest in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate. For more information, please visit www.omers.com, or www.omersworldwide.com
Photo courtesy of Shutterstock