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Sai Devabhaktuni, Senior Managing Director, joins other Private Equity Leaders for a discussion on Portfolio Construction at the 2025 Mergermarket Private Equity Forum 

The private equity playbook is being rewritten and reshaping how investors operate. Longer holding periods, slower exit activity, and changing GP behaviours are driving institutional allocators to rethink traditional approaches. At the recent Mergermarket Private Equity Forum in Austin, industry leaders gathered to discuss how they are evolving portfolio construction in today’s environment. 

Navigating the slower flywheel 

Sai Devabhaktuni, Senior Managing Director at BCI Private Equity, shared how BCI is navigating these market challenges. “The investment – value creation – monetization flywheel is not spinning as fast as it should be.” Put simply, private equity firms are taking longer to exit investments and return capital while simultaneously approaching investors for new fund commitments.  

In response to these extended timelines, BCI has recalibrated its capital deployment and is taking a more deliberate approach on both the timing and the sizing of commitments.  BCI’s disciplined strategy includes being more selective on investments and active portfolio management that carefully weigh risk exposures across holdings. 

Dynamic portfolio management 

At the same time, Devabhaktuni outlined three areas where BCI Private Equity is adapting: 

• Building strategic GP relationships: Moving toward fewer, deeper partnerships while prioritizing managers with strong value creation capabilities, AI adoption, and robust succession planning. As Devabhaktuni explained, “As we’re deploying capital… that capital will be there for an extended period of time, we need to make sure it’s protected and there’s continuity.” That said, BCI remains open to new partnerships: “If an interesting opportunity comes up and there’s a value proposition, we’ll engage. The bar is higher, but we’ll engage.” 

• Implementing broad diversification: The strategy spreads investments across firm sizes, geographies, and capital stack positions to build portfolio stability. “We want to construct a portfolio that is resilient and diverse in terms of the size of private equity firms we engage with—not just large cap but also middle market.” Geographically, the team favors a regional approach, maintaining diversified exposure across markets rather than taking concentrated country-specific positions. 

• Flexible, active portfolio management:  BCI tactically rebalances its exposure as market conditions evolve.  This may include utilizing the secondary markets, altering the risk/reward paradigm by moving up the capital structure or obtaining exposures through continuation vehicles. As it relates to continuation vehicles, BCI takes a case-by-case approach to each opportunity. “There’s no default option from our perspective; everything is bespoke.”  

Looking ahead 

Managing nearly C$34 billion in assets under management through 80+ investment professionals across Victoria, New York, and London, BCI Private Equity reflects how leading investors are adapting to markets with active portfolio management while maintaining a focus on long-term value creation. Current market dynamics will likely persist with evolving distribution patterns—a reality that prompted Sai to note, “It’ll be interesting to see what happens in the future.” BCI’s agile approach, characterized by flexible deal structuring and disciplined investing, enhances the firm’s ability to respond to these conditions. 

Watch a recording of the full panel discussion below:  

Mergermarket Private Equity Forum – Austin, October 7, 2025 | Panel: “Institutional investor insights: looking ahead” 

By Florence Chong
Published: September 2025

Canadian pension fund BCI aims to substantially increase the share of European assets in its infrastructure portfolio, as it continues to look abroad for expansion.

British Columbia Investment Management (BCI) is likely to increase its infrastructure investment in Europe by 50% over the next five years, in line with its broader strategy to grow its overall infrastructure portfolio by 60% by 2030.

BCI sees Europe as “a transaction-rich environment” with many nameplate infrastructure assets available for acquisition. It aims to increase the share of European assets to between 25% and 30% of its infrastructure portfolio – up from 21% today.

The firm set the stage for this European expansion with the opening of its London office in 2023. The office, which currently has 10 staff members, is expected to grow as BCI continues to build its investment footprint in the region.

BCI manages the investments of a number of public-sector pension and insurance funds in British Columbia. “As their long-term targets for the asset class continue to increase, we anticipate remaining a very active investor in the market,” says Jerry Divoky, senior managing director of infrastructure and renewable resources at BCI.

Divoky notes that, historically, BCI’s infrastructure programme has delivered strong returns with relatively low risk – it has been designed to deliver stable performance through different market cycles and events.

BCI’s C$32.2bn (€19.8bn) infrastructure portfolio has delivered an approximate 5% yield. “Half of our return over the last decade has effectively come from yield, and the other half from capital appreciation,” Divoky explains. “Significant capital comes back to us as yield, which we can then redeploy.”

The portfolio is primarily comprised of regulated utilities – including gas, power and water – which account for 40% of assets. Renewable resources such as timber and agriculture comprise 20%. Transportation and GDP-sensitive assets and renewable energy each account for 10%, digital/telecommunications 5%, and the balance is allocated to other assets.

At 5%, BCI’s exposure to digital infrastructure remains modest compared with some of its peers. Divoky says: “The anchor in our portfolio has always been core infrastructure – regulated utilities or highly contracted assets. Even though this space has become more competitive, we remain interested.”

Even so, BCI sees strong potential in digital infrastructure. “We remain focused on digital infrastructure opportunities, as many investors are. It is a sector with strong thematic tailwinds,” Divoky says. So far, BCI has mainly participated in digital through the debt markets.

Opportunistic approach

BCI has a wide investment scope and acquires assets opportunistically. In June, it bought a minority stake in Pinnacle Towers, the largest telecom tower platform in the Philippines, from KKR. The acquisition bolstered BCI’s existing telecom tower investment in Altius in partnership with Brookfield. “India is experiencing a tremendous expansion in data and telecommunications,” Divoky says.

Altius combines telecom tower and related infrastructure assets previously held by Summit Digitel, Crest Digitel, and American Tower Corporation’s Indian operations. The latter was acquired last September, giving the partners ownership of 257,000 telecom sites, making it the largest tower portfolio in India and the largest platform globally outside of China.

Divoky also highlights that a repricing in the renewable power sector is creating attractive new investment opportunities that are in focus in North America as well as Europe.

In June, BCI and Macquarie Asset Management acquired Renewi, a European industrial waste recycling business, in a deal valued at £707m (€816m).

“Waste is an area we’ve found quite attractive over the years,” Divoky says. “We just hadn’t found the right kind of business until now. Renewi focuses on commercial and industrial waste and holds a commanding position in Belgium and the Netherlands.”

BCI generally pursues a buy-and-hold strategy but will occasionally make strategic exits. One such divestment was its sale of US assets owned by Global Container Terminals (CGT). “We didn’t feel we could manage terminals on both coasts of the US effectively or generate significant synergies,” says Divoky. BCI, which co-owns GCT with IFM Investors and Ontario Teachers’ Pension Plan, is now focused on terminals in Vancouver.

Regarding trade tensions, Divoky remains unfazed: “So far, we’ve experienced strong trade volumes. Negotiations are ongoing and will eventually settle. If there is any shift in trade-related infrastructure, it will happen over decades.”

Already, 90% of BCI’s infrastructure assets are located outside of Canada. Given the limited size of the domestic market, Divoky expects international assets to remain the main driver of growth.

Privatisation potential

There is, however, a potential shift on the horizon. Under the Liberal government led by Mark Carney, Canada is exploring private capital participation in infrastructure to address budgetary challenges.

“But investable opportunities in Canada for large-scale brownfield operating infrastructure are relatively modest,” Divoky says. “We hope that changes going forward. Canada’s Federal Government and Provinces still own airports and most utilities. There’s tremendous potential for the government to privatise these assets, realise capital, and reinvest in greenfield projects that support GDP growth.”

Divoky adds that BCI has deployed capital effectively in the US over the years. “We’re still very interested in the US market, but with the current geopolitical climate, we’re being a bit more cautious,” he says.

“We’d also like to deploy more capital in Australia but, as with Canada, quality opportunities are scarce. Beyond that, India has tremendous promise,” he says. Significantly, it is another market where BCI has on-the-ground representation. So far, the Philippines is the other market where it has invested.

Approximately 10% of the firm’s infrastructure portfolio is in Latin America, but political instability has prompted BCI to exercise “caution” on new investments.

Asked whether global geopolitical tensions have impeded investment, Divoky says that the opposite is the case: “The uncertainty is creating pricing opportunities. Assets aren’t being priced for perfection. We’re mindful of geopolitics, political risks and the potential for populism when deploying capital.”

With a growing global pool of capital targeting infrastructure, Divoky acknowledges that competition is fierce. BCI seeks opportunities in both public and private markets.

“We’ve recognised over the years that competition for private assets has intensified. So we’ve enhanced our ability to find value in listed markets,” he says.

Most recently, BCI led the £1bn take-private of Luxembourg-based BBGI Global Infrastructure. “It’s the first major take-private transaction fully led by the BCI infrastructure team. It’s groundbreaking,” Divoky says.

“We felt BBGI would continue to diversify our global portfolio.” BBGI holds more than 50 infrastructure companies and projects across sectors and geographies.

BCI has previously taken over a public timber company, now part of its Mosaic timber business. Divoky believes BCI will continue to seek opportunities to privatise listed infrastructure companies when the timing and value are right.

Republished with permission. Read the original article on IPE Real Assets.

A name change to reflect the department’s evolution since its inception over 20 years ago 

After more than two decades of growth and evolution, BCI’s Public Markets department is changing its name to Capital Markets & Credit Investments. The change represents the breadth, expertise, and sophistication of the investment strategies the team has built over BCI’s nearly 26-year history. 

What began as a small team in 2000 has grown into a dynamic, multi-faceted group managing more than $165 billion in assets. A key milestone in this evolution is the strategic shift toward internal management capabilities, rising from 57 per cent internally managed assets in 2015 to more than 85 per cent today. This agile approach supports internal innovation, differentiates BCI’s team, generates greater client value, and demonstrates our commitment to building world-class in-house expertise.

The program has successfully navigated multiple market cycles by maintaining defensive positioning with strategic sector allocations and establishing robust liquidity frameworks years in advance. ESG principles have also been integrated directly into investment analysis and decision-making processes, reflecting BCI’s recognition that environmental, social, and governance practices can materially impact investment performance. 

Today, the Capital Markets & Credit Investments department oversees a global portfolio that spans public equities, absolute trading strategies (through the Partnership Portfolio), derivatives trading and indexing, fixed income, foreign exchange, and private debt, while also managing BCI’s Funding Program and overseeing BCI’s ESG strategy. The private debt component alone has grown significantly since its launch in 2018 with the Principal Credit Fund now representing a $20 billion allocation. 

“This change reflects the evolution of our department. Capital Markets & Credit Investments better captures who we are today: a dynamic, forward-looking team that continues to grow and innovate. This new department name honours everything we’ve built and signals where we are headed,” said Daniel Garant, Executive Vice President, Global Head of Capital Markets & Credit Investments.  

As public and private markets strategies converge, the Capital Markets & Credit Investments team’s agility and expertise enable BCI to identify and capitalize on unique investment opportunities across the capital spectrum, delivering stronger outcomes for the clients we serve. 

While the department’s name has evolved, its core mission remains unchanged: delivering strong, risk-adjusted returns for BCI’s clients through diverse investment strategies. 

The evolution of infrastructure investment in the digital and energy transition era 

Lincoln Webb, Executive Vice President and Global Head of Infrastructure & Renewable Resources, recently spoke at McKinsey & Company’s 10th Global Infrastructure Initiative Summit, sharing BCI’s perspective on “Evaluating risk and return in Infrastructure’s new era”. His insights focused on how innovative projects, particularly in energy transition and digital infrastructure, require expanded due diligence frameworks to ensure investments deliver both compelling returns and meaningful societal impact. 

Infrastructure investment success in 2025 requires navigating a complex landscape where traditional defensive assets must coexist with transformational opportunities. Today’s investors must adopt a fundamentally different risk assessment approach – one that integrates predictive modeling, geopolitical analysis, data security scrutiny and ESG factors as core investment criteria, not secondary considerations. BCI’s C$32.2 billion Infrastructure & Renewable Resources (I&RR) portfolio is embracing this evolving risk analysis approach. It allows our I&RR program to concentrate on essential services that demonstrate resilience over long-term investment horizons, while also positioning the portfolio for the economy of tomorrow with more innovative infrastructure investments. 

 
Energy transition: Where returns meet impact 

The energy transition continues to present compelling long-term investment opportunities, with operational assets typically delivering high-single digit net IRRs and development projects offering mid-teen returns over 10 to 20-year investment horizons, while enabling meaningful carbon reduction through renewable energy and supporting infrastructure. McKinsey estimates that clean electricity will account for 65 to 80 per cent of global generation by 2050¹. They also project that achieving net-zero emissions by 2050 would require US$9.2 trillion in annual average spending on physical assets for energy and land-use systems through 2050, representing an additional US$3.5 trillion per year compared to current spending levels. This represents an unprecedented capital deployment opportunity for investors who can effectively assess and manage evolving risk profiles. This growth spans renewable energy systems, smart grids, energy storage, and supporting infrastructure across multiple jurisdictions and technologies. 

Today, renewable power investments comprise approximately 9.0 per cent of BCI’s I&RR portfolio – a figure that has steadily grown over the past ten years through investments in Eku Energy, Isagen, Reden Solar, and Shepherds Flat. 

Key factors that we evaluate for energy transition investments include: 

• Regulatory or policy risks: Complexities arising from interacting with multiple regulatory frameworks, as well as changing government and subsidy policies, 

• Technology performance: Evaluating long-term project technologies in terms of production, reliability and durability, and operational costs and long- term maintenance forecasts, and, 

• Market dynamics:  Evaluating energy price stability or volatility, the strength of existing customer contracts, and future expected energy demand. 

Digital Infrastructure: Essential Services For Today’s Economy 

BCI’s most recent digital infrastructure investments have focused on telecommunication assets bridging digital divides and 4G coverage gaps in growth markets, but all digital infrastructure investments require comprehensive technical due diligence. Today, digital infrastructure assets comprise approximately 9.2 per cent of I&RR’s portfolio, including our recent investments in Frontier Towers, Rakuten Mobile and Altius. 

The digital infrastructure sector is estimated to require US$19 trillion of investment by 2040, yet the sector presents unique risk assessment challenges. These include physical infrastructure capacity, radio equipment specifications, transmission capabilities, and co-location opportunities. Investors must evaluate both current operational status and expansion potential for multiple operators. 

Key factors that we evaluate for digital infrastructure investments include: 

• Supply Chain Risks: Critical component constraints and construction timeline pressures, 

• Regulatory Compliance: Evolving cybersecurity requirements and data privacy regulations, 

• Technology Integration: Managing interdependent risks throughout digital infrastructure ecosystems, and, 

• Power Infrastructure: Ensuring adequate power solutions for opportunities in data centers and communications networks. 

Strategic Portfolio Evolution 

The complexity of these interconnected risks requires comprehensive due diligence and sophisticated risk mitigation strategies. While traditional infrastructure assets continue to form the foundation of our core I&RR strategy, our investment scope evolves to capture the best opportunities across sectors – including those in digital and energy transition spaces that align with both our return objectives and our clients’ long-term interests. This approach reflects our commitment to generating long-term value through our investments, leveraging our extensive global network, and applying our unique industry expertise in an increasingly complex investment landscape. 
 

Lincoln Webb (centre) and other panel participants at McKinsey & Company’s 10th Global Infrastructure Initiative Summit. 

(1) https://www.mckinsey.com/capabilities/sustainability/our-insights/sustainability-blog/cop27-financing-the-transition-to-net-zero

Victoria, B.C. – September 17, 2025 – British Columbia Investment Management Corporation (BCI) today released its 2024-2025 Stewardship Report, demonstrating continued leadership in driving ESG performance and portfolio outcomes through engagement, proxy voting, and policy dialogue.  

“The past year was marked by significant geopolitical upheaval and economic uncertainty, with some suggesting that ESG is inconsistent with delivering financial returns,” says Jennifer Coulson, BCI’s Senior Managing Director and Global Head of ESG. “Our experience managing $295 billion in global assets tells a different story: effective stewardship drives sustainable value for our clients, and is fundamental to our approach.”  

Last year, BCI engaged 176 portfolio companies to address material risks and opportunities, and achieved its objectives or built positive momentum with 34 per cent of those companies. During the most recent proxy season, BCI voted at 2,225 public company meetings in 52 countries.  

Notable engagement successes include completing a multi-year collaborative engagement with Teck Resources on climate risk, protecting minority shareholder interests during the acquisition of Atacadao SA, and contributing to the broader governance reform movement in South Korea that led to the country’s landmark Commercial Act amendments. Additionally, BCI’s position on stronger sustainability disclosures to support investor decisions continues to yield results. More than 35 jurisdictions covering 40 per cent of global market capitalization have now incorporated the International Sustainability Standards Board (ISSB) standards.¹

This year’s report also introduces BCI’s updated ESG engagement priorities – physical and transition climate change risk, responsible AI, and human capital management – which reflect the areas expected to have the greatest impact on investment performance in the coming years.  

“As an active, long-term investor, BCI has a responsibility to help position our portfolio for the risks and opportunities ahead,” adds Coulson. “Every engagement, every vote, and every policy submission is ultimately about protecting and growing the assets entrusted to us by our clients.” 

2024-2025 stewardship highlights   

• Emphasizing governance: BCI voted against or withheld our vote from 32 per cent or nearly 4,000 board directors across our global equities portfolio for reasons including insufficient independence, lack of board diversity, and problematic compensation practices. We pursued 56 engagements on corporate governance, reinforcing our foundational expectations and supporting board and management accountability.  

• Managing climate risk: BCI continued to vote against board directors for lack of climate risk oversight and disclosure, and pursued 139 climate engagements in the energy, utilities, and financial sectors. Notably, we completed a seven-year engagement with Teck Resources that culminated in the company’s removal from the Climate Action 100+ target list based on its progress. 

• Expanding influence in Asia: BCI deepened engagement in prominent Asian markets, including Hong Kong, India, Japan, Malaysia, Singapore, South Korea, and Thailand. We cast votes at nearly 750 annual meetings in the Asia-Pacific region and engaged with companies and policymakers alongside investor coalitions like the Asian Corporate Governance Association to raise market standards. 

• Creating value in private markets: BCI engaged 16 private portfolio companies to strengthen alignment with our ESG expectations and support sustainability initiatives designed to deliver value at exit. We hosted an inaugural Private Equity ESG Value Creation Conference in New York, bringing together nearly 50 investment partners and companies to demonstrate the links between ESG and financial performance.  

As a core aspect of BCI’s ESG strategy, this stewardship reporting complements the ESG and climate-related disclosures available in our 2024-2025 Corporate Annual Report. 

Read the 2024-2025 Stewardship Report on BCI.ca.  

¹IFRS Foundation Annual Report 2024 

With its rapid economic growth and favourable demographics, Asia is presenting increasingly attractive investment opportunities for global investors. BCI has exposure to the region through our active and passive public equities strategies, as well as direct investments in our Private Equity and Infrastructure & Renewable Resources portfolios – most recently in India, Japan, Malaysia, and the Philippines.  

Our investment footprint means Asia is an increasing focus for BCI’s stewardship program. We are observing strong regional momentum for corporate governance reforms that will enhance shareholder value and ultimately accelerate progress on other material environmental and social issues – creating a compelling case for increased engagement. 

Over the past two years, BCI deepened our efforts across Hong Kong, India, Japan, Malaysia, Singapore, South Korea, and Thailand through collaboration with international investors, participation in meetings with regulators and companies, policy consultation submissions, and ESG-related joint statements. This work aligns to our investment objectives, and we take a holistic view of advancing progress.  

An integrated approach

In Asia, BCI’s approach to stewardship combines company engagement with strategic policy input, recognizing these efforts are most effective when pursued together. To maximize our impact and resources, we also work in close collaboration with other global investors and industry organizations like the Asia Corporate Governance Association (ACGA) and Asia Research & Engagement (ARE). 

Many companies are not only receptive to this approach but increasingly proactive in embracing organizational changes such as greater shareholder outreach, strengthened governance practices, and expanded ESG initiatives. Across our engagements, we are intentional about emphasizing the critical role that companies play in driving reforms and elevating these markets to align with global standards.  

Delivering investment value 

BCI’s ESG initiatives directly support the objectives and priorities of our investment teams, helping to deliver long-term, sustainable returns for our clients. We have dedicated ESG experts embedded across our business, working hand-in-hand with portfolio managers to factor ESG risks and opportunities into investment decisions.  

Our focus in Asia is no exception. BCI’s regional activities are helping to shape the attractiveness of the market and address underlying risks that could impact long-term returns.  

For example, BCI’s internally managed Active Emerging Markets Equity Fund has many years of experience in Asia-Pacific, providing valuable insight into the ESG topics and engagement opportunities across the region that could influence portfolio performance. The deep expertise and capital allocation perspective of the investment teams adds credibility to our overall approach with companies and regulators. 

“Companies aren’t only hearing from a standalone ESG team – they hear directly from our portfolio managers who are actively allocating capital. This alignment gives BCI’s voice real weight and helps companies understand that ESG considerations are directly embedded into our investment decisions.” 

– Shannon Gong, Principal, ESG 

“With South Korea representing a significant part of BCI’s active global emerging markets equity portfolio, these improvements have direct relevance to our investment outcomes. Stronger minority shareholder protections and enhanced transparency support our investment objectives and should help address the country’s valuation discount over time.”  

– Jean-Christophe Lermusiaux, Managing Director, Global Emerging Markets. 

Learn more about BCI’s approach in our 2024-2025 Stewardship Report . 

Guided by our belief that stronger ESG practices will ultimately lead to stronger performance, BCI uses our influence and shareholder rights to drive ESG improvements in our portfolio and across the broader capital markets.  

Proxy voting is a crucial part of our stewardship activities. Share ownership comes with the right to vote at company meetings and participate in the decisions of the public companies that we are invested in. BCI takes this opportunity seriously and aims to vote at the meetings of every public company in our portfolio. We publish these votes ahead of each annual general meeting through a database on our website.  

BCI season snapshot   

Proxy season trends 

The 2025 proxy voting season revealed significant shifts in shareholder initiatives, marking a departure from recent trends in both the volume and nature of proposals submitted to public companies. 

Results from North American annual general meetings (AGMs) offer insight into this evolution. We have observed a sharp decline in the number of shareholder proposals filed, with a 26% decrease in volume compared to 2024 – one of the most significant declines in recent years. The reduction likely reflects the guidance provided by the Securities & Exchange Commission (SEC) early in the season, which allowed more companies to exclude proposals that had already been filed, and a potential recalibration of shareholder activism strategies. Other notable observations include:  

• Focus on traditional corporate governance priorities: For the first time since 2021, governance-related initiatives outnumbered environmental and social (E&S) proposals. Governance proposals received strong investor support above 30%, reflecting continued emphasis on board composition, accountability, and shareholder rights.   

• Headwinds for climate-related proposals: Average support for climate proposals dropped from 25% to 10%, signaling shifting investor sentiment and selectivity. However, in Canada, support for proposals asking banks to disclose the extent to which they are  financing fossil fuels compared to cleaner energy sources via an “energy supply ratio” was markedly high with nearly 40% backing, bucking the downward trend. This suggests that investors are paying attention to financial institutions’ exposure to energy sector risks and opportunities. 

• Challenges for diversity, equity and inclusion (DE&I) proposals: Support for DE&I proposals declined from 24% to 14%, with Equal Employment Opportunity-1 disclosure and racial equity audit proposals seeing increased backing, indicating higher investor appetite for transparency. 

• Uncertainty about AI: Despite doubling in volume, support for AI proposals dropped from 17% to 10%, suggesting investor caution around this relatively new proposal topic and measures that could impact competitive positioning. 

• Low support for anti-ESG requests: While we saw an increase in the number of proposals explicitly seeking rollbacks or an end to corporate activities addressing climate, DE&I, and other ESG topics, these proposals received consistently low support. With around 5% support, these proposals are unlikely to gain widespread favour.   
  

We anticipate many of these trends will persist in future voting seasons, and expect to see continued strong support for governance-focused proposals and more nuanced investor expectations for environmental and social risk management.  

BCI voting examples

• Climate Change: BCI supported proposals asking BMO, CIBC, and TD to disclose their renewable versus non-renewable energy funding ratios. TD achieved 38% support – a record for a climate proposal at a Canadian bank – with CIBC and BMO receiving 37% and 32% respectively. 

• Governance: BCI cast ballots for over 12,000 director elections, voting against or withholding our vote for 32% based on poor governance practices with insufficient independence representing over half of the votes. 

• Executive Compensation: BCI voted against UnitedHealth Group’s executive compensation plan due to a problematic $60 million front-loaded stock option award for the CEO. Forty percent of shareholders opposed the plan, demonstrating significant concern. 

• Responsible AI: BCI supported a shareholder proposal asking Amazon to disclose how AI data center expansion affects its climate commitments. The proposal received 20% support, representing strong shareholder backing.  

Looking ahead

Our work doesn’t stop at the ballot. After we vote, BCI directly follows up with select portfolio companies to ensure they understand our rationale and expectations. We also closely review our voting record to see how we made an impact and find areas to refine our approach. This review is an important step in preparing for any repeat shareholder proposals and will inform our biennial Proxy Voting Guideline update planned for 2027.  

Proxy voting represents just one component of our comprehensive stewardship program, which also includes direct and collaborative engagement and policy advocacy work. As responsible stewards of our clients’ assets, this engaged approach is crucial to ensuring the long-term sustainability of our investments.  

Learn more in our 2024-2025 Stewardship Report. 

Sources: BCI, Institutional Shareholder Services, Morningstar, and RBC Capital Markets 

Partnership to Support Continued Strategic Expansion and Accelerate Growth, Building on Company’s Leadership in Commercial Paving Services

New York, NY & Victoria, BC – September 9, 2025 – AEA Investors’ (“AEA”) Middle Market Private Equity team (“AEA MMPE”) and British Columbia Investment Management Corporation (“BCI”) today announced that they have acquired Pave America, LLC (“Pave America” or the “Company”), a leading commercial paving maintenance services provider, from Trivest Partners (“Trivest”) and Shoreline Equity Partners (“Shoreline”). Trivest and Shoreline will retain a minority stake in the business, alongside Company management. Terms of the transaction were not disclosed.

Headquartered in Virginia, Pave America has rapidly solidified its position as the largest provider of commercial paving maintenance services in the U.S. With 27 branches and self-perform capabilities in 43 states, the Company offers a full suite of maintenance and new construction services to local and national customers. Powered by its proprietary PavementSoft technology platform, which supports everything from lead tracking to invoicing, Pave America has earned a reputation for consistent quality and seamless operations across geographies, making the Company a solutions provider of choice and a highly sought-after partner within the paving industry.

“This marks the beginning of an exciting new chapter for Pave America,” said Tom York, CEO of Pave America. “AEA has a strong history of partnering with branch-based services businesses to successfully scale for the long run, and they and BCI bring expertise and resources that will be instrumental as we seek to accelerate our growth both organically and through strategic acquisitions. We are grateful to Shoreline and Trivest for their support in establishing such a strong foundation for our business, and we look forward to building on that progress together with AEA and BCI, continuing to deliver the highest quality commercial paving solutions to new and existing clients nationwide.”

“The Pave America team has built a standout business rooted in a culture of operational excellence and employee ownership, which continues to attract top-tier branch operators across the country,” said Alex Mehfar, Partner on the AEA MMPE team. “In a highly fragmented market with significant runway, Pave America has consistently demonstrated its ability to deliver an unparalleled quality of work while continuing to strengthen and scale its differentiated platform. Leveraging its purpose-built PavementSoft software, the Company has seamlessly integrated across locations and consistently delivers superior employee and customer experience. We’re excited to support the team as they build on this momentum and pursue new opportunities for growth moving ahead.”

“Pave America has created an unrivaled platform in commercial paving, combining national scale, purpose-built technology, and comprehensive self-perform capabilities to deliver superior service quality,” said Aaron Papps, Senior Managing Director, Private Equity, BCI. “Our investment alongside AEA reflects our shared conviction in the Company’s growth trajectory and operational leadership, which distinguish Pave America in the marketplace. We look forward to supporting the Company’s management team as they continue executing and accelerating their proven expansion strategy.” 

“We have been proud to support the creation of the leading national platform in commercial paving services,” said Russ Wilson, Managing Partner at Trivest, and Mike Hand, Managing Partner at Shoreline. “The Company’s rapid growth, strong culture, and successful integration of best-in-class operators have positioned it as the clear market leader. We are excited to continue our partnership as minority investors alongside AEA and BCI as Pave America enters its next phase of expansion.”

Addition of accomplished Healthcare investor with significant business growth and operations experience reflects BCI Private Equity’s continued global team expansion

VICTORIA, NEW YORK, LONDON – September 9, 2025 – British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, is pleased to announce the appointment of Nikhil Hanmantgad as Managing Director for BCI Private Equity. In this role, Mr. Hanmantgad will be responsible for identifying and executing new investments in BCI Private Equity’s global healthcare vertical as well as leading value creation opportunities across the healthcare portfolio. Mr. Hanmantgad will report to Jon Salon, Senior Managing Director, who joined BCI in July 2024 to lead BCI Private Equity’s healthcare coverage.

“We are thrilled to welcome Nikhil to BCI’s Private Equity team. His appointment underscores our ongoing commitment to strengthening our healthcare focus and advancing our targeted investment strategy in a sector experiencing strong momentum,” said Jim Pittman, Executive Vice President & Global Head, Private Equity at BCI.

“Our team is distinguished by the deep healthcare investing experience of our senior professionals, including those who are former CEOs and founders, bringing invaluable insights to our partnerships with leading management teams,” added Mr. Salon. “Nikhil’s combination of investment acumen and hands-on operating experience makes him a great addition as we continue to expand our capabilities in this critical sector.”

Mr. Hanmantgad brings two decades of healthcare investing and operating experience to BCI. Throughout his career, he has led the execution of over $2.5 billion in invested capital across growth equity and buy-outs of healthcare businesses. Most recently, Mr. Hanmantgad served as Private Equity Senior Principal at Mubadala, a $330 billion UAE sovereign wealth fund, where he helped lead the U.S. healthcare team.

“Having founded and led healthcare businesses, I’ve seen firsthand the complexities and opportunities that management teams navigate,” said Mr. Hanmantgad. “I’m excited to join BCI Private Equity’s healthcare sector team, where the emphasis on operational excellence and value creation is deeply embedded.”

Prior to Mubadala, Mr. Hanmantgad was a Principal and member of the Investment Committee at Health Catalyst Capital, a lower-middle-market healthcare private equity fund. Mr. Hanmantgad also brings significant operating experience, having served as CEO of MedTools, a healthcare IT business that drove improved access and utility of information on medical devices for surgeons and hospital procurement departments. He has also held board roles and portfolio company responsibilities for Norstella, Zelis, PCI Pharma, Datavant, Clearsense, Simplifeye, and Clareto. Mr. Hanmantgad earned an MBA from Columbia University Graduate School of Business and a Bachelor of Science in Finance from New York University Stern School of Business.

Mr. Hanmantgad joins BCI Private Equity as the program continues to expand globally, following the recent opening of its European office in London and expansion of its European team to support growing investment activity across European markets. Today, BCI’s Private Equity team has more than 70 professionals across offices in Victoria, British Columbia, New York City, and London, investing across geographies and market cycles with a focus on proactive liquidity management.

At BCI, we recognize that energy infrastructure investments present compelling opportunities to generate sustainable, long-term returns while supporting communities’ transition to cleaner energy solutions. Our investment in Puget Sound Energy (PSE), Washington State’s oldest and largest energy utility, demonstrates our commitment to building essential infrastructure that powers economic growth and fosters environmental stewardship throughout the Pacific Northwest.

For more than 150 years, Puget Sound Energy has fueled the growth of local communities in one of the most innovative regions in the world. Today, it operates an expansive 6,000-square-mile territory across 10 counties, delivering safe and reliable electricity at a reasonable cost to approximately 1.2 million customers and natural gas to 900,000 more. With a workforce of about 3,200 employees, PSE ensures energy security for both residential and business customers in this diverse, rapidly growing region. The company currently manages a broad portfolio of energy resources – including hydroelectric, natural gas, coal, solar, biomass and wind – to meet evolving demands, while investing in critical infrastructure that improves system reliability, safety, and supports community growth. To meet targets under Washington State’s Clean Energy Transformation Act, PSE plans to fully phase out all coal-based electric generation by the end of 2025 and it is continuously seeking to procure additional renewable and non-emitting resources. As well, its energy efficiency programmes have helped PSE customers conserve nearly 5 billion kilowatt-hours of electricity and almost 50 million therms (a measure of heat energy) of natural gas. 

PSE is one of BCI’s largest and longest standing infrastructure investments, managed through our Infrastructure & Renewable Resources (I&RR) program. BCI initially acquired an equity interest in PSE as part of a consortium of long-term infrastructure investors in 2009 and has continued to re-invest and strengthen its equity stake over time. BCI’s investment in PSE centers on the utility’s position as a well-managed, high-quality core infrastructure company that continues to align with the long-term investment objectives of our clients.  

Clean Energy Transition 

PSE was an early adopter of cleaner, renewable energy initiatives, from establishing one of the largest energy efficiency programs in the nation to building its first wind facility in 2005. PSE continues to lead Washington State’s shift to clean energy, with a bold energy transition strategy anchored in renewable resources and environmental stewardship supported by comprehensive state climate laws which provide the framework for PSE’s goals. The utility is balancing a reduction in carbon emissions with a steadfast commitment to providing reliable, safe, affordable, and equitable energy for its customers.  

To achieve these goals, PSE is focusing on four pillars: 

• Utility-scale renewables: adding significant new wind, solar, hydroelectric, and battery storage resources, such as the Clearwater Wind and Energy Keepers in Montana and Vantage Wind Energy in Washington. 

• Grid modernization: deploying advanced technologies and smart meters to accommodate distributed energy resources and empower customers with detailed, timely energy insights. 

• Customer programs: through initiatives in energy efficiency, demand response, and customer-owned solar and battery storage, PSE projects nearly 200MW of annual contributions to its energy mix by the end of 2025. 

• Energy equity and accessibility: engaging directly with vulnerable and highly impacted communities, refining program designs, expanding community-based renewables, and ensuring the benefits of clean energy are shared across all customer groups. 

 PSE is committed to providing 80 per cent of its electricity supply from carbon-free resources by 2030, in accordance with the Clean Energy Transformation Act. The company’s latest renewable energy project is the Beaver Creek Wind Facility in Stillwater County, Montana. This large-scale wind farm includes 88 wind turbines and became fully operational in August 2025. Beaver Creek has a nameplate capacity of 248MW – enough to power approximately 83,000 homes annually.  

The company also actively pilots emerging technologies, such as hydrogen, to further reduce emissions and strengthen regional decarbonization. With a strategic emphasis on renewable energy development, PSE positions itself to meet the state’s decarbonization mandates while supporting the region’s dynamic population and economic expansion.

Looking Ahead 

BCI’s partnership with Puget Sound Energy exemplifies our commitment to investing in essential infrastructure that supports thriving communities while advancing environmental progress. As the Pacific Northwest continues to experience robust economic growth and increasing demand for safe, reliable, affordable, and equitable clean energy, we believe PSE is exceptionally well-positioned to deliver value for all stakeholders while contributing to a more sustainable energy future. Through our continued partnership, BCI supports PSE’s ongoing efforts to power Washington State’s growth with innovation, reliability, and environmental responsibility.