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. 

As debate surrounding the role of sustainability in investment strategies intensifies, leading Canadian pension funds are demonstrating how active ownership is helping them fulfill their fiduciary duty, while building long-term resiliency into their portfolios.

During a recent discussion, Susan Golyak, director, environmental, social, and governance (ESG) at the British Columbia Investment Management Corp. (BCI) and Delaney Greig, director of investor stewardship at the University Pension Plan Ontario (UPP), outlined how active engagement, clear and consistent ESG integration, and proxy voting form the foundation of their funds’ sustainable investment frameworks.

Beyond divestment

While media headlines often focus on divestment, both Golyak and Greig stressed that divestment often can be the least effective tool in the sustainability toolbox.

As a jointly sponsored defined benefit pension plan, UPP’s mandate is to invest in the best financial interests of its pension plan members, delivering secure, long-term retirement outcomes for its participants across Ontario’s university sector, said Greig. She noted that the $10B (C$12.8B) plan was designed, from its inception four years ago, with active ownership as a central pillar. While investment exclusion is a tool the fund can use to deal with industry or company-specific risk, she said there’s a much broader set of active ownership tools it relies on more heavily. Those tools include incorporating manager selection due diligence and ongoing monitoring, as well as direct engagement with companies, proxy voting, and policy advocacy on broader, systemic issues.

“When we’re using those tools, we’re looking at things that . . . will affect the portfolio as a whole, like climate change and inequality that . . . play out on our diversified portfolio across our exposures. They’re not specific to whether one company is going to succeed or fail, [but more] about whether the entire portfolio or, in some cases, the entire economy, is going to [fail].”

Golyak echoed this sentiment, noting BCI’s mandate is to invest its $212B (C$295B) assets under management in the best financial interests of its pension and corporate clients in the province. Together, its clients represent more than 725,000 beneficiaries, so protecting their financial interests is a top priority for the pension fund, she said.

She noted broad-based divestment doesn’t serve that mandate, noting the fund isn’t interested in making decisions that exclude parts of the investment universe.

“Our portfolio managers make decisions on a day-to-day basis in terms of adding and removing names from the portfolios for various reasons. But when it comes to broad-based divestment of companies, for example, those are decisions that we don’t believe are in the best interests [of our fiduciaries]. We think it’s much more important to maintain our ownership and engage with the company.”

Like UPP, BCI uses many tactics to exercise its influence, but its core strategy is direct engagement with companies on material issues through collaboration with [peers] and other members of groups like Climate Action 100 and Climate Engagement Canada.

While the pension fund has some exclusions based on federal government treaties, executing its votes through proxy-voting mechanisms is a major part of its stewardship activities. But from an overall risk management perspective, the investment teams integrate ESG considerations into every aspect of the investment process to ensure they’re mitigating risks associated with ESG factors and capturing opportunities, she shared.

Harnessing the shareholder “voice”

When used effectively, shareholder proposals can influence corporate behavior and safeguard returns in a market where ESG issues are increasingly viewed as financially material.

“We believe ESG factors do make a difference to long-term returns,” said Golyak, noting that governance expectations form a large share of BCI’s voting activity.

She said BCI has tightened its approach to shareholder proposals and proxy voting, issuing updated guidelines every two years to reflect shifting governance trends and evolving ESG concerns. The pension investment manager publishes a public version of its guidelines on a bi-annual basis, after consulting clients on potential revisions. The guidelines provide companies with a roadmap of how BCI is likely to vote and what practices it expects to see from corporate boards. BCI’s clients delegate the final authority on votes, and it is expected to make all decisions with their long-term financial interests in mind.

The guidelines also link directly to BCI’s broader engagement priorities, aligning position statements, expectations, and voting actions to push companies toward improved practices. She added that beneficiaries often scrutinize the fund’s voting record and increasingly expect managers to hold corporate leadership accountable while supporting credible shareholder initiatives.

“The ESG team creates the guidelines, executes the votes, and manages the relationship with the proxy voting service provider that facilitates the process,” said Golyak. “That accountability and mandate rests with us.”

Internal portfolio managers are kept informed and engaged in discussions about upcoming votes, she said, noting collaboration with the investment team ensures alignment between proxy-voting decisions and the fund’s long-term sustainability objectives.

UPP also leverages proxy voting as a direct tool to influence corporate behavior in ways that support positive outcomes for the fund and its members.

The pension fund recently moved more of its proxy voting in-house, seeking greater consistency across its portfolio and closer alignment with beneficiaries’ long-term interests. Greig noted the pension investment manager has also been transitioning assets from pooled funds to segregated mandates, where possible, to “hold the pen” on proxy votes and ensure a unified approach to corporate governance across the portfolio.

“Our only reason for voting is the long-term vested interest of our clients, as opposed to a manager who has multiple clients with different priorities,” Greig pointed out.

When it comes to executing a vote, the fund considers portfolio-wide standards for governance, including expectations for board independence and auditor rotation. She said UPP votes with the broader market view in mind, favoring governance practices that have proven effective over time.

While proxy advisory firms often draw scrutiny, Greig emphasized that these firms serve more as research providers than decision-makers. UPP relies on an external proxy research platform to handle the vast scale of global voting.

“We vote across thousands of companies worldwide. We don’t have the time to sift through every disclosure ourselves — that’s where the external provider comes in.”

The firm screens corporate disclosures against those guidelines and supplies relevant information, enabling the fund’s stewardship team to execute the votes. “In some senses, the term ‘advisory’ is a misnomer,” she added. “For us, they are a proxy research firm. They don’t decide how we vote — we do.”

Transparency, communication key

Proxy voting can be seen as a blunt instrument, so clear communication and transparency surrounding reasons a firm is casting its ballot in any direction is critical.

“When we vote against a director or executive pay, we make a point of telling companies why,” said Greig. “Otherwise, they may not understand if it’s about governance, diversity, compensation, or another issue entirely.”

One of the multiple channels UPP uses to increase transparency is a real-time, proxy-voting disclosure site that is updated as soon as votes are cast — sometimes even before annual general meetings. It also aggregates votes and rationales in its quarterly reports for easy access and sends direct letters to companies— particularly where engagement is ongoing or exposure is high — explaining the rationale for votes against management and requesting that their boards be made aware.

The goal, she said, is to ensure companies understand the rationale underlying UPP’s votes. For instance, a vote against the chair of a nominations committee may stem from concerns about board diversity or board independence. Communicating the specific reasons demystifies the blunt instrument of a “yes” or “no” vote.

Beneficiaries are another key audience. Making proxy policies, rationales for votes against management, and explanations for shareholder proposal decisions not only keeps beneficiaries informed but also allows them to hold the fund accountable, said Greig.

As well, external stakeholders, including advocacy groups, may review and critique UPP’s voting record, she continued. “At the end of the day, it’s our policy and our analysis of long-term interests that determine how we vote. But it’s important to understand what other stakeholders are thinking as well.”

Golyak agreed, noting BCI is comfortable providing regulators with either aggregated data or specific examples, showing how expectations are embedded in actual votes. “When regulators can review investors’ guidelines and see who plans to vote against directors — and why — that’s a compelling demonstration of our seriousness.”

Republished with permission. Read the original article on Markets Group.

From integrating insurtech through its Innovation Lab to offering data-driven, customized analytics, BMS Group (BMS) isn’t just brokering insurance contracts – it’s reinventing how its clients manage risk. Recognized for its deep expertise in insurance, reinsurance and capital markets advisory, BMS is exceptionally well-positioned as a growing, independent global specialty insurance broker, supported by BCI Private Equity.  

Headquartered in London, BMS manages approximately £8 billion in gross written premiums annually and has built a reputation for delivering tailored solutions to its loyal, global client base. The company’s comprehensive portfolio covers wholesale and direct insurance, reinsurance, capital solutions, and advanced analytics, serving sectors from construction and energy to shipping and finance. Since its founding in 1980, BMS has grown to over 2,000 professionals across 52 offices in 16 countries, spanning the U.K., Europe, North America, Asia, and Australia. As one of the few remaining independent, large-scale Lloyd’s specialty insurance brokers, BMS is uniquely positioned as a global leader in its field. 

The Investment Opportunity 

BCI Private Equity’s investment in BMS reflects a targeted strategy of partnering with premier specialty insurance brokers that demonstrate exceptional operational scale, deep sector expertise, and the strategic capabilities necessary to capitalize on emerging opportunities within the transforming insurance marketplace. 

BCI first made a majority investment in BMS in 2019, alongside Preservation Capital Partners. After strong growth through 2023, Eurazeo entered as strategic investors to enable BMS to continue this growth trajectory into the next five years. BCI Private Equity focuses on remaining involved over the long term for most of their investments. Today, BCI and Eurazeo are the largest shareholders of BMS, and Preservation Capital Partners and BMS management also remain important investors. This collaborative ownership structure ensures strong strategic direction and governance with expertise from multiple long-term partners – all aligned in driving BMS’s success. In fact, nearly one third of BMS staff are fellow shareholders, personally invested in the future of the company. 

This investment marked BCI’s first major direct entry into the insurance distribution sector, underscoring our belief in the sector’s stability and growth potential. BCI’s Private Equity team saw a compelling opportunity to support a key business-services provider with strong, stable cash flows and a proven ability to attract top talent. BMS’s diversified geographic footprint, high client retention, and independent status in the Lloyd’s insurance market set it apart, in a sector well positioned for continued consolidation. BCI’s partnership with BMS is a testament to our confidence in the sector’s stability and the company’s long-term growth potential.

Rapid Growth: Strategic Acquisitions Fuel Expansion 

BMS has demonstrated remarkable momentum by embracing both organic initiatives and carefully selected acquisitions to fuel their expansion. The acquisition of David Roberts & Partners Group in 2024 – one of the fastest-growing independent brokers in the U.K. – stands as a transformative achievement, introducing nearly 400 new team members and 25 new locations into the BMS network. This major step, supported by BCI and BMS’s other investors, underscores BMS’s ambition to lead as a premier independent specialty insurance broker in today’s consolidating landscape. 

Since 2020, BMS has executed a string of targeted acquisitions, enhancing their expertise and service offerings around the globe. Key milestones include entering Turkey’s insurance and reinsurance market with Oria, strengthening Australia’s property insurance segment with Corporate and Commercial Insurance Brokers, and extending their reach in Spain and Latin America through Rasher. Their acquisition of GARD Insurance & ALE Underwriting bolstered their Managing General Agent capabilities (intermediaries who are delegated significant authority by insurers) in Australia, while PWS Mexico and Trean Intermediaries significantly increased their presence in Mexico and North America, respectively.  

This mix of calculated acquisitions and consistent organic growth – particularly in emerging regions – has solidified BMS’s position as a dynamic and innovative player in the specialty insurance sector. 

Supporting Other BCI Investments 

BMS has also played a pivotal role in supporting other BCI investments. When BCI’s Infrastructure & Renewable Resources (“I&RR”) team was expanding their portfolio, BMS enabled them to navigate complex investments in emerging jurisdictions such as India and the Philippines. When Cube Highways, an I&RR portfolio company, needed to navigate India’s dynamic insurance landscape, the company found a solution in BMS’s cross-border capabilities – validating BMS’s expertise in managing complex, multinational insurance needs. BMS was also selected to provide specialized insurance services to several other Private Equity portfolio companies, including BHC (one of Korea’s leading franchise restaurant operators). 

These collaborations demonstrate the depth of BCI’s approach to value creation. By fostering internal synergies – where portfolio companies are empowered to tap into BMS’s world-class services – BCI ensures that every investment gains from access to best-in-class providers. This strategy not only drives better risk management across the portfolio but also strengthens BMS’s stature as a go-to partner for innovative, tailored insurance solutions on a global scale. 

Looking Ahead 

BCI believes BMS’s robust platform, global reach, and unwavering commitment to client service will continue to deliver value for years to come. With a best-in-class management team and a solid foundation for sustainable growth, BMS is ideally positioned to capitalize on evolving client needs and industry consolidation – making it a natural fit for BCI’s private equity strategy.  

VICTORIA, NEW YORK, LONDON – August 20, 2025 – British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, today announced the appointment of Ken Bennett as a Strategic Advisor for its Private Equity program, effective immediately.   

Based in St. John’s, N.L., Mr. Bennett will focus on strengthening long-term value creation activities across BCI Private Equity’s global portfolio and reinforcing strategic partnerships with current and prospective management teams to drive further business growth. In this role, Mr. Bennett has also been named to the board of BMS Group, a BCI Private Equity investment, providing strategic guidance on ongoing value creation and growth strategies. BMS Group is a leading independent specialty insurance and reinsurance broker, based in London, U.K.  

“We are pleased to welcome an accomplished industry leader of Ken’s calibre to BCI’s Private Equity program,” said Jim Pittman, Executive Vice President & Global Head of Private Equity. “Ken is the first of several senior advisors we plan to bring on to work alongside our talented team to help scale and support our growing global portfolio. He will be a key asset to the BMS board, and his deep operating expertise, board-level insight, and unparalleled experience in insurance and reinsurance will further strengthen our value creation model, governance and alignment across our portfolio.” 

Mr. Bennett has over three decades of operating experience across the insurance and reinsurance industries and brings a wealth of expertise in business strategy. He is an entrepreneur and is an Owner of Bennett’s Home Hardware Building Centre, Bennett Developments Inc. and Bennett Real Estate Services. He is a co-founder and strategic advisor to Vedra AI Inc., a Canadian AI start up focusing on accelerating AI in the insurance industry. Previously, Mr. Bennett served as President of Johnson Insurance Ltd. and Assurance Company for 15 years, where he led a successful transformation and expansion of the business, establishing it as one of Canada’s leading providers of insurance and benefits. Mr. Bennett also has extensive board experience. He is currently chair of the board of The Health Care Foundation, one of Newfoundland and Labrador’s largest charitable organizations, is the former chair of the board of Newfoundland Power (a Fortis Company), and currently serves as a board member of BMS Group and Vedra AI Inc.  

“I’m honoured to leverage my experience as an operator across the global, Canadian and North American insurance landscape to support the growth of BCI Private Equity and contribute to the BMS board,” said Mr. Bennett. “I look forward to working alongside Jim and the talented executive team at BCI Private Equity to help advance its strategic initiatives and long-term value creation.”  

Large scale partnership advancing long term timberland stewardship and marking one of the largest timberland transactions ever in Latin America

São Paulo, Brazil – 19 August 2025 — The BTG Pactual Timberland Investment Group (BTG Pactual TIG), one of the world’s largest timberland investment managers, has announced the formation of a large, consolidated timberland platform in southern Brazil. The transaction will significantly expand BTG Pactual TIG’s presence in the state of Paraná, where it has operated since 2017.

The ~US$ 700 million investment comprises ~100,000 gross hectares of sustainably managed mature timberland assets, consisting primarily of pine and eucalyptus forests. The transaction was structured in partnership with Klabin S.A. (Klabin), Brazil’s largest producer and exporter of packaging paper and a leading manufacturer of paperboard packaging, and British Columbia Investment Management Corporation (BCI), one of Canada’s largest institutional investors.

“This transaction marks an important step in our long-term strategy to invest in sustainably managed timberland in Brazil,” said Gerrity Lansing, Head of BTG Pactual TIG. “It expands our presence in Paraná—a strategically important region for forestry in the country—and reflects our commitment to building scalable platforms alongside long-term institutional partners like BCI and strategic partners like Klabin, whose deep industry knowledge adds meaningful value.”

Marcos Paulo Conde Ivo, Chief Financial Officer of Klabin said: “Collaborating with BTG Pactual TIG and BCI on this investment reflects Klabin’s ongoing engagement to sustainable forestry and responsible stewardship and reinforces Klabin’s commitment to disciplined capital allocation and deleveraging, consolidating the creation of sustainable value for all its stakeholders”

“We are pleased to expand our partnership with BTG Pactual TIG through this strategic investment,” added Lincoln Webb, Executive Vice President & Global Head of Infrastructure & Renewable Resources at BCI. “This transaction reflects the opportunity we see in high-quality, sustainably managed timberland assets. Working alongside experienced partners such as TIG and Klabin supports our objective of delivering long-term, risk-adjusted returns for our clients.”

The investment will align with Klabin’s 2030 Agenda and leverage TIG’s sustainability infrastructure and experience to sustainably manage the timberland assets in a manner that aims to generate both financial returns and positive environmental and social outcomes.

The transaction described in this press release is subject to standard precedent conditions, including approval by the relevant regulatory authority.

BCI is pleased to announce that Geraldine Hutchings will join the BCI Board of Directors on September 1, 2025. The College Pension Board of Trustees has appointed Geraldine for a two-year term.

Geraldine brings extensive experience and expertise in pension governance. She has served on the College Board of Trustees since 2012, including as Chair and Vice Chair, and was appointed as a Director on the Pension Management Board of the BC Pension Corporation in 2018, where she also served as Chair of the Audit Committee.  

“On behalf of the Board of Directors, I look forward to welcoming Geraldine to the BCI Board,” said Peter Milburn, Chair of BCI’s Board of Directors. “Geraldine’s proven experience in pension governance will support our oversight role as BCI continues to deliver long-term value for clients in an increasingly complex environment.”

“I am honoured to be joining BCI’s Board of Directors,” said Geraldine Hutchings. “Having worked closely with pension plans for many years, I understand the critical importance of effective governance and oversight in protecting and growing clients’ assets. I look forward to contributing to BCI’s strong governance and its continued success in serving clients.”

Director transition

Geraldine succeeds Weldon Cowan, who is resigning from the BCI Board on August 31, 2025. Weldon was first appointed to BCI’s Board in 2021 and served as a member of the Human Resources and Governance Committee.

“We thank Weldon for his years of dedicated service to the BCI Board,” said Peter. “During his tenure, Weldon’s expertise and insights helped to strengthen our oversight and governance of BCI. We are sincerely grateful for his valuable contributions, and we wish him well.”

About the BCI Board of Directors

BCI’s Board is structured in accordance with the Public Sector Pension Plans Act. BCI’s four largest pension plan clients each appoint a member from their Board of Trustees, with the Minister of Finance appointing the Chair and two directors to comprise a seven-member Board.

Geraldine’s full biography and additional information about BCI’s Board of Directors can be found at BCI.ca/governance.

By Sarah Rundell

PUBLISHED: August 14, 2025

British Columbia Investment Management Corporation (BCI), the C$295 billion ($214 billion) asset manager for public sector bodies in Canada’s western most province, oversees a C$20 billion ($14.5 billion) allocation to private debt in a strategy that is defined by a few key characteristics: a large and growing allocation to co-investments, an avoidance of mega deals and an expansion into Europe and APAC.

Around 65 per cent of the private debt allocation is direct or in co-investments via partnerships with external firms, which although not unique, sets BCI apart from many other investors and reaps benefits like diversification, deeper relationships, deal selectivity and lower fees.

“Not everyone can do direct or co-investments but having an overall portfolio of 65 per cent in direct and co-investments is a high number, and we are looking to do more,” says Daniel Garant, executive vice president and global head of public markets, in conversation with Top1000funds.com.

BCI has been doing direct lending in the US ever since the portfolio was launched in 2018. But moribund M&A activity continues to push private credit firms to jump on every opportunity. It’s drawn huge investor flows into US private debt and tightened credit spreads. The fiercely competitive market for lenders has propelled BCI into new geographies – first Europe and more recently, Asia Pacific.

“For the last three years, we have increased our allocation to Europe for the simple reason that credit spreads and returns are currently attractive. Having a portion in Europe, and a growing portion in Asia Pacific, is helping us as these markets will develop over the years. They won’t get to the same size as the US, but private debt in Europe and Asia will get a growing share of this portfolio,” he predicts.

Another important seam to strategy involves avoiding mega deals where “everyone” is bidding. It’s not that these deals aren’t interesting, says Garant, it’s just that they are competitive and tightly priced. Instead, he is focused on transactions that are less crowded to get a better spread, calling on BCI’s strong partners to bring deal flow in the upper middle market and middle market.

Another reason to avoid mega deals in private debt includes competition in the space from broadly syndicated loans (BSLs), which corporate borrowers can tap into as an alternative to private debt. BSLs are usually cheaper, and lenders don’t ask for as much spread as private credit investors. In return, they don’t have the same flexibility.

“A private debt loan is more flexible, but it is more expensive,” he says.

Adjacent Opportunities

Another successful seam to strategy includes adjacent opportunities. In one example, the team has broadened its remit and ventured into more asset-backed lending. Garant says it’s less competitive and offers a better risk return, and although deals are more complex, BCI can draw on its deep internal expertise and talent pool for support – around 85 per cent of BCI’s total assets are managed internally.

Traditionally, asset-backed lending where loans are secured against property or equipment, consumer loans or credit card balances, used to be the domain of banks. Unlike direct lending which involves analysis of the corporation, financial projections and strategy, investors in the asset-backed space must also ensure they have the capacity and infrastructure to successfully select the assets that sit behind each deal.

“This is where the secret lies,” he says, adding that managers (and their selection) play a key role in sourcing the assets that back the loans. “Asset-backed lending is usually part of a broad diversified portfolio and that requires technology, including AI tools, to better enable us to see the portfolio behind it because this is where the risk sits.”

Adjacent opportunities also include looking for openings in investment-grade (private) debt where investment-grade corporates go to the private market in search of a more flexible portion of funding.

It’s a strategy that also plays into another inherent strength of the portfolio.

The public markets team oversees both the allocation to private debt and absolute return strategies, alongside more obvious public allocations to passive and active public equities, government and corporate bonds, derivatives, trading and FX and managing portfolio leverage. Garant believes the hybrid portfolio works particularly well given today’s demands on investors to remain flexible, and the fact that the lines that used to define markets are increasingly blurred.

“Investment grade private debt is a hybrid between corporate bonds which are investment grade, and private debt per se, so having the view of both markets is essential in my view to do a good job in terms of capital allocation and risk return.”

Absolute Return and Synthetic Index Replication

The C$12 billion ($8.7 billion) absolute return portfolio, the other slight anomaly in BCI’s public markets allocation, seeks opportunities that are uncorrelated to equity – namely unique, idiosyncratic investments that are expected to perform well in all market environments.

The strategy provides a welcome corner of active risk in an equity allocation that has steadily moved into passive.

At 23.6 per cent, BCI’s current allocation to public equities is a smaller proportion of assets under management than it used to be and subjects the portfolio to less volatility than in the past. Of that, the majority is passive in index strategies for rebalancing.

Absolute return investment opportunities have a specific risk-return profile that typically comprises low downside risk and a capped upside, but which is above the market beta return. Absolute return implementation comes via an overlay above public, indexed equities whereby BCI’s clients receive the beta of equities, and a value add over the benchmark from uncorrelated strategies.

“Of course, the quid pro quo is if the downside is capped and limited, the upside is also going to be capped. The key success factor is the right partnership and sourcing, as well as the skill of the team and being agile and nimble to look at opportunities that are a bit different,” he says.

The largest exposure is to a long-short market-neutral credit manager. Other uncorrelated instruments providing strong returns in the overlay strategy include transactions in litigation finance and structured debt instruments with penny warrants. Here, the downside credit protection caps potential losses and the upside comes via the interest rate paid on the debt instrument and potential equity returns from the penny warrants.

In keeping with BCI’s overarching approach, the structure of the overlay is managed internally with capital allocated to partners where BCI will co-invest if the team decide they want more exposure to particular opportunities. “The positions are not short-term, we target transaction maturities to be within five years – we don’t aim for short-term tactical positions that are, say, three months.”

It’s a topical point. As more investors explore tactical asset allocation in the current climate, Garant remains lukewarm.

“I’m not a strong believer in tactical asset allocation. Our strategy is not based off short-term market moves.”

“Tactical asset allocation requires coping with significant mark-to-market volatility with features such as stop losses, and although some firms are good at it, many aren’t because it’s extremely difficult to time market movements. If you want to perform, you need to change positions quickly, and positions need to be large to have a meaningful impact on your return. For example, relative value trades between equity and bonds consume a lot of active risk.”

BCI has no edge investing tactically, he continues. It’s much better to invest the way they are, whereby partners bring opportunities, the internal team hunts for specific returns and risk profiles, and where transactions are less crowded.

A second active equity strategy in addition to absolute return comes via synthetic indexation, where the team move investment between physical and synthetic index replication according to market opportunities.

The physical allocation involves trading a basket of stocks alongside a synthetic index replication exposure via swaps, he explains. Every year, the team has added value by doing synthetic index replication and he concludes that the strategy is important because active equities are difficult in the current market.

“In public equity markets, we have never seen this type of market concentration before. In Canada, we are used to having a few stocks dominating the benchmark, but in the US, this is a new feature in the modern era. It adds complexity for long-only public equity active investors.”

Transformational investment launches Brinley’s inaugural collateralized loan obligation (CLO) offering

Victoria, BC, July 30, 2025 – British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, today announced that Brinley Partners, LP (“Brinley”), a private credit investment manager initially seeded by BCI’s Principal Credit Fund, has secured an additional US$4 billion commitment from a leading U.S. insurance company. This capital will fund Brinley’s inaugural collateralized loan obligation (“CLO”), the first in a planned series of rolling vintages, beginning with a US$1 billion investment vehicle.

Brinley focuses on high quality companies in the middle-market, upper-middle market, and large cap space, operating in defensive sectors. Brinley’s first flagship fund, Brinley Private Debt Fund I LP, closed in 2021 with approximately US$3 billion of total capital, inclusive of leverage.

“BCI first invested in Brinley in 2021, having built strong conviction in the strategy created by the company’s Founder, Kerry Dolan, and the growing demand for corporate private debt. Since that time, Brinley has demonstrated successful execution and delivered strong results for BCI,” said Daniel Garant, Executive Vice President & Global Head, Public Markets at BCI. “We’re thrilled to see Brinley secure this US$4 billion commitment to extend their offering into the CLO market. This is a transformational transaction for Brinley and all equity partners – including BCI.  We are pleased to continue our partnership with Brinley in their next phase of growth.”

Kerry Dolan, Founder and Managing Partner of Brinley added: “Our inaugural CLO is a natural extension of our credit platform, and welcoming a new strategic partner marks a meaningful milestone in Brinley’s continued evolution and the growth of our firm.”

Brinley’s expansion into the CLO market reinforces its momentum as a growing, multi-product credit platform. Leveraging the firm’s existing capabilities, the CLO will employ Brinley’s flagship strategy of providing comprehensive capital solutions to high-quality mid-market and large-cap companies, with a specific emphasis on businesses with high barriers to entry, compelling industry fundamentals, and demonstrated revenue visibility or predictability, among other factors. The CLO strategy was specifically designed to meet the needs of insurance sector investment capital, including flexible structuring capabilities that allow the CLO to include various debt products.

BCI’s Principal Credit Fund has committed, or agreed to commit, more than US$2.5 billion to Brinley.