Caisse and Ontario Teachers’ founding investors of insurance platform, CPPIB sells stake in parking company
BY Staff | October 23, 2019
The Caisse de dépôt et placement du Québec and the Ontario Teachers’ Pension Plan are partnering with Anurag Chandra, former chief executive officer of Prosperity Life Insurance Group, to launch Constellation Insurance Holding, a new platform focused on property and casualty and life insurer acquisitions and demutualizations.
“Constellation plans to invest in stock and mutual insurers based in North America that are seeking growth capital, stronger ratings, scale efficiencies and equity incentives while maintaining their independent management structure, brand identity, operations and entrepreneurial culture,” said Chandra, who is founder, chairman and CEO of Constellation, in a press release.
With the Caisse and the Ontario Teachers’ as founding investors, the venture has raised US$500 million in capital.
“We believe this new partnership, which allies a unique combination of expertise to a flexible investment horizon, will provide a source of competitive advantage for Constellation” said Stephane Etroy, executive vice-president and head of private equity at the Caisse.
Jane Rowe, executive managing director for equities, at the Ontario Teachers’ also made noted of Chandra’s significant track record in the insurance sector. “We expect this partnership with Constellation and CDPQ to create significant value for our stakeholders.”
In other investment news, the Canada Pension Plan Investment Board is selling its 39 per cent stake in European parking lot owner and operator, Interparking, to APG.
Interparking operates across nine countries with 949 parking sites. Other investors, AG Real Estate and Parkimo, will maintain their stakes in the company.
“Interparking has been an important and integral part of our European infrastructure portfolio for a number of years,” said Scott Lawrence, managing director and head of infrastructure at the CPPIB, in a press release. “Our partnership with our co-investors – AG Real Estate and Parkimo – and the Interparking management team has been very positive and has contributed to the company’s continued success as a leading owner and operator of high quality car parks across Europe.”
Closing of the transaction is expected to take place in the coming months.
“As a pension investor, we are continuously looking for attractive infrastructure investments worldwide that help us realize stable and long-term returns for Stichting Pensioenfonds ABP and other pension-fund clients we work for,” said Patrick Kanters, managing director of global real assets at the APG. “This investment in Interparking offers a sustainable long-term business model with strong growth and robust cash generation through its established pan-European platform and its resilient diversified car park portfolio. We are very excited to be working alongside experienced shareholders AG Real Estate and Parkimo in the long term to continue to support Interparking’s outstanding management team to develop and grow their business.”