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BCI is pleased to announce that Jeremy Trickett has joined our Executive Management Team, effective June 9, 2025 in the role of Executive Vice President, Legal Affairs & Chief Legal Officer. Jeremy reports directly to Gordon J. Fyfe, Chief Executive Officer/Chief Investment Officer (CEO/CIO).    

“Jeremy has done an excellent job of leading our legal and compliance teams, and I’m pleased to welcome him to our Executive Management Team,” said Gordon J. Fyfe, CEO/CIO. “His expertise and international experience make him well-positioned to contribute to BCI’s long-term growth as we expand our global footprint and deliver diversified investment opportunities at scale for our clients.” 

“I’m honoured to join BCI’s Executive Management Team as we advance our client-first strategy in an ever-evolving legal and regulatory environment,” said Jeremy Trickett. “I look forward to continuing to work closely with our Senior Management Team and to leading our talented Legal Affairs professionals in delivering practical guidance that supports BCI’s and our clients’ long-term goals.” 

Jeremy joined BCI in 2023 as Senior Vice President, Legal Affairs & Chief Legal Officer. He leads BCI’s legal and compliance teams, which have enterprise-wide responsibility for supporting transactional, investment, and operational activities. In his expanded role, he will also lead BCI’s government relations function.  

Before joining BCI, Jeremy served as Senior Vice President & Chief Governance Officer at Great-West Lifeco Inc. He holds an Honours BA, JD, and an LLM, and is a member of the law societies of British Columbia, Alberta, Manitoba, Ontario, and England and Wales. Read more in Jeremy’s biography here. 

About BCI’s Executive Management Team

The Executive Management Team sets the overall direction of BCI, aligned with our clients’ investment needs and expectations. This involves developing the strategic business plan, preparing the budget, and determining the corporate priorities. The team provides leadership to staff, oversees operations, and coordinates resources. 

SINGAPORE & VICTORIA, Canada – June 9, 2025 – KKR, a leading global investment firm, British Columbia Investment Management Corporation (“BCI”), and Pinnacle Towers, an Asia-based digital infrastructure platform with a focus on the Philippines, today announced the signing of definitive agreements under which BCI will acquire a minority stake in Pinnacle Towers from KKR, which will remain the majority shareholder.

Pinnacle Towers was established in 2020 to serve the rapidly increasing demand for connectivity and quality telecommunications infrastructure in the Philippines. Led by a highly experienced management team, the platform specializes in executing on Build-to-Suit (“BTS”) telecommunications tower projects, optimizing the use and management of Sale-and-Leaseback (“SLB”) assets with leading mobile network operators, and providing ancillary management services to industry players. In the span of five years, Pinnacle Towers has scaled to become the largest independent tower company in the Philippines with around 7,000 towers.¹

Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources, BCI, said, “We are excited to work closely with KKR and Pinnacle’s management team to support the growth of the business. The Philippines represents a compelling market for long-term capital, especially in essential digital infrastructure services. This investment aligns with our emerging markets strategy of backing high-quality infrastructure assets alongside strong institutional partners. We look forward to supporting Pinnacle Towers as it continues to enhance digital connectivity and drive meaningful impact across the Philippines.”

Projesh Banerjea, Managing Director, Infrastructure, KKR, said, “We are very proud of the success that we have achieved with Pinnacle Towers to serve the Philippines’ connectivity needs. Since our initial investment, we have collaborated closely with Pinnacle Towers’ outstanding management team to deepen the platform’s capabilities and scale its presence organically and through bolt-on acquisitions. We are delighted to welcome BCI, who share our long-term vision and commitment to developing critical digital infrastructure, as strategic partners and look forward to building on Pinnacle Towers’ strong growth momentum.”

Patrick Tangney, Chairman and CEO of Pinnacle Towers, said, “Over the last five years, with the support of KKR, Pinnacle Towers has grown to become the leading independent tower company in the Philippines. BCI’s investment marks an important milestone in our journey and is a strong endorsement of our mission. With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region.”

BCI Infrastructure & Renewable Resources has a global portfolio with nine active investments in the Asia-Pacific region, including Rakuten Mobile (a leading communications tower company in Japan), Altius (a leading communications tower company in India), and Cube Highways (the largest toll road operator in India). The program continues to expand its presence in the region with the addition of this minority stake acquisition in Pinnacle Towers.

KKR made its investment in Pinnacle Towers from its Asia Infrastructure Funds I and II. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world. KKR’s Asia Pacific infrastructure platform was established in 2019 and has since organically grown to approximately US$13 billion in assets under management.

The transaction is expected to be completed by Q3 2025, subject to customary regulatory approvals.

¹Including sites contracted to build or acquire

London, U.K. and Victoria, Canada, 06 June 2025 – Macquarie Asset Management, via Macquarie European Infrastructure Fund 7, and British Columbia Investment Management Corporation (BCI) (together, “the Consortium”), have completed the acquisition of Renewi, a leading waste-to-product company.

Renewi is a pure-play recycling company that focuses on extracting value from waste and used materials, diverting waste flows from incineration or landfill. The company sorts and processes more than 10 million tonnes of waste and wastewater at around 150 sites, primarily across the Netherlands and Belgium, two of Europe’s most advanced circular economies. Renewi utilises innovative processes and advanced technology to transform waste into circular materials, including paper, metal, plastics, glass, wood, building materials (including sand, gravel and cement replacements), compost and water.

The Consortium will support Renewi to further enhance its position as the circular economy leader across the Netherlands, Belgium, France and Portugal, and will support the business’ transformation initiatives, including the One Renewi strategy that was recently launched to strengthen Renewi’s logistics and processing capabilities. The Consortium’s investment will also enable Renewi to achieve its growth ambitions and increase the company’s recycling yield further.

Gabriele Duesberg, Head of Diversified Infrastructure – EMEA at Macquarie Asset Management, said:

“We are delighted to have finalised the acquisition of Renewi, a market leader in the waste sector. As countries across Europe look to transition to waste-free economies, Renewi is well positioned to capitalise on this demand with its strong growth ambitions and innovative waste solutions. We look forward to supporting the business as it becomes a European leader in the circular economy.”

Lincoln Webb, Executive Vice President & Global Head, Infrastructure & Renewable Resources at BCI, said:

“This acquisition represents an exciting opportunity for us to work alongside Renewi, an established player in the waste sector. We look forward to supporting the business with its transformation initiatives and long-term growth plans, helping to contribute to a more circular economy in Europe.”

Annemieke den Otter, Chief Financial Officer and Board Member at Renewi, said:

“We are excited to partner with the Consortium as we focus on advancing circularity and becoming the leading waste-to-product company for Europe’s most advanced circular economies. We have made great progress on this goal over recent years, and as I look ahead, I am confident that with this new collaboration, and through the passion and dedication of our teams, we will create a more sustainable society for all.”

Macquarie Asset Management has invested in, managed and supported the development of assets in the waste management sector for more than 15 years in Europe, the Americas, and Asia-Pacific. Through its investments, Macquarie Asset Management supports the growth strategies of these waste management companies by providing additional capital to scale the businesses, while investing in initiatives to improve performance.

Macquarie Group has been invested in the Benelux region for 20 years. Since 2005, Macquarie Group has been investing in the region’s infrastructure including HES International, one of Europe’s largest diversified port terminals, and SkyNRG, a developer of sustainable aviation fuel.

BCI’s investment in Renewi was made through its Infrastructure & Renewable Resources program, which invests in tangible long-life assets in the Americas, U.K., Europe, and Asia Pacific, including a portfolio of direct investments in regulated utilities, energy, telecommunications, transportation, timberlands, renewable resources and agri-businesses. BCI Infrastructure & Renewable Resources has a long-established presence in the U.K. and Europe through notable direct investments such as A2 Motorway, Eku Energy, National Gas Transmission, and Reden Solar.

Navigating today’s complex and volatile market environment requires innovative investment strategies. Our recent client education event featured a panel that brought together experts to share their insights and experiences on emerging investment approaches. Highlighting strategies that address the decelerating deal landscape and create opportunities for diversification, risk management, and value creation, the panel included: 

• Lynn MacAdam, Vice President, Client Partnerships  

• Zaman Velji, Senior Managing Director, Infrastructure & Renewable Resources 

• Kenton Freitag, Senior Managing Director, Private Debt 

Here are some highlights from the panel discussion: 

Q&A with the Panelists

Q: Can you provide an example of a new investment strategy that you’ve recently implemented or are currently working on? 

Kenton Freitag: In private debt, one of the most recent strategies we’ve launched is asset-backed financing. This involves lending to a pool of assets, for example, student or car loans, or trade receivables, rather than directly to companies. By increasing the opportunity set, this approach allows us to achieve diversification, augment returns, and lower risk. Instead of being exposed to the risk of a single company, we spread our risk across multiple assets. This diversification helps to mitigate potential losses and enhances the stability of our returns, which is crucial in today’s volatile market environment. 

While we are starting this strategy in a modest fashion, with sponsor-backed lending continuing to be the primary driver of our strategy, we anticipate that asset-backed financing will significantly grow within the next two to three years. This growth will allow us to further diversify our investment portfolio, reduce risk, and potentially increase returns by tapping into different asset classes and market opportunities. 

Q: What are some innovative areas you’re exploring in the infrastructure sector? 

Zaman Velji: We’re participating in opportunities in infrastructure debt, particularly in data centres, which are attractive in this interest rate environment. Investing in debt rather than equity allows us to manage risk more effectively while still participating in the growth of this sector. 

As another, more preliminary example, we’re exploring the potential of nuclear energy, which is experiencing a resurgence, and seeking to understand how new technologies, such as small modular reactors, are evolving and the implications they could have for power generation globally. 

Q: Can you share an example of an investment idea that didn’t make the cut and why? 

Zaman Velji: We take a patient, evolutionary approach with emerging sectors. As an example, for electric vehicle charging infrastructure, we’ve conducted multiple evaluations over several years, tracking how business models are developing and which players are surviving. Several from our first look years ago have disappeared, which validates our cautious approach. 

We examine fundamental questions like how money is made—is it through energy sales, retail offerings like at gas stations, or long-term availability-based contracts? We also look at operational requirements like having enough scale to support maintenance teams efficiently. With EV charging, we’ve seen the surviving players all chasing the same growth opportunities, creating intense price competition. As a result, we’ve held back despite the tremendous growth potential in the sector. That said, I imagine it’s just a matter of time before we see EV charging infrastructure mature to fit our risk profile, but we’re not quite there yet. 

Q: What are you most proud of for your teams over the past year? 

Kenton Freitag: Growing the portfolio while keeping it safe and maintaining spreads has been a significant achievement for our team. Over the past year, we have faced numerous challenges in the market, including increased volatility and economic uncertainties. Despite these obstacles, we have successfully expanded our portfolio by identifying and capitalizing on new opportunities, while ensuring that we keep risk low. This has allowed us to achieve consistent returns for our clients and uphold the integrity of our investments in navigating these complex market conditions. 

Zaman Velji: I’m most proud of how we’ve maintained our culture while expanding in size, in breadth, in strategy. With team members in London, Mumbai, Vancouver, and Victoria, keeping a cohesive identity and approach is a source of strength. Despite the distance and time zones, we’ve stayed true to our foundational values—putting clients first, operating with transparency, and maintaining absolute integrity in all we do. These values aren’t just words on a wall; they guide our daily decisions across every office. In a world pulling people in many different directions, preserving this unified culture while growing our footprint has been our most meaningful achievement. That shared DNA makes us stronger as investors and as partners to the communities where our infrastructure assets operate. 

Innovation is at the heart of BCI’s approach to driving growth and delivering value to clients. BCI strives to be agile and forward-thinking in a rapidly evolving business environment, constantly exploring new and transformative ways of working to stay ahead in the industry.  

Earlier this year, we hosted a client education event that brought together clients, partners, and investment professionals, featuring a panel discussion on how various asset classes are incorporating innovation into their strategies. The panel featured insights from  

• Jennifer Hartfield, Senior Vice President, Corporate Data & Operations 

• Liane Groenendijk, Senior Principal, Infrastructure & Renewable Resources 

• Adam Johal, Senior Associate, Public Markets 

• Ashton Scordo, Director, Private Equity 

The panelists shared their experiences and strategies on how innovation is shaping their investment approaches and helping BCI stay ahead in the industry. Here are some highlights from the discussion: 

Q&A with the Panelists 

Jennifer Hartfield: Innovation at BCI is about doing something different to create value. It’s not just about using technology like AI, but also about fostering a mindset of thinking differently and encouraging calculated risk-taking to drive our innovation agenda forward. 

Q: How is the Public Markets team leveraging innovation? 

Adam Johal: In Public Markets, we’re focused on continuous innovation to ensure our investment professionals get the data they need quickly and efficiently to make investment decisions. For example, we’re using AI-powered tools like Bloomberg’s news prioritization and chart generation features. 

Q: Can you share a recent innovative investment approach from the Infrastructure & Renewable Resources team? 

Liane Groenendijk: One deal we executed was a sale-leaseback transaction with Rakuten for their mobile telecom towers. This structure provided us with stable lease payments and allowed Rakuten to invest in expanding its network. Additionally, we leveraged an in-house currency component to enhance returns, showcasing our ability to be creative and collaborative across BCI. 

Q: How is the Private Equity team approaching innovation? 

Ashton Scordo: Our Private Equity team is deeply committed to innovation, demonstrated by how we are leveraging advanced AI to help us maximize efficiency and make informed investment decisions. By integrating AI into our workflows, we can process vast amounts of data quickly and accurately, allowing us to stay ahead of industry trends and be more efficient in making investment decisions. This hands-on approach ensures that we understand the underlying technologies we invest in and maintain an edge over our peers. 

Q: What are some of the challenges and opportunities with new technologies? 

Adam Johal: New technologies, particularly AI tools, offer significant advantages such as enhanced data processing and decision-making capabilities. However, they also present challenges, including ensuring data accuracy and avoiding hallucinations, which are instances where the system generates plausible but incorrect information. To mitigate these risks, we use vetted platforms, with traceable references, ensuring reliable data for our investment teams. 

Jennifer Hartfield: What differentiates innovation at BCI from other companies is our clear and consistent mission to drive returns in our client portfolios and operate as a cost-effective investment manager. This mission anchors our innovation efforts, ensuring that every new idea and technology we adopt is purpose-driven and aligned with our core objectives and values. By leveraging our internal capabilities and encouraging cross-departmental teamwork, we innovate with purpose, creating meaningful value and delivering on our commitment to our clients. 

At BCI, we are proud to champion the transition to cleaner, more efficient energy solutions across North America. Our investment in Corix – a company that has rapidly emerged as a leader in low-carbon thermal energy systems – demonstrates how environmental innovation can drive sustainable, long-term results.

Founded in 2006 and headquartered in Vancouver, B.C., Corix grew to become a leading provider of thermal energy and water/wastewater utility services. In 2024, Corix’s water and wastewater business merged with SouthWest Water to form the Nexus Water Group, and Corix rebranded as a standalone district energy business. Today, Corix is recognized for its expertise in designing, building, owning, and operating district energy systems that deliver heating and cooling to cities, campuses, and master-planned communities across North America. District energy systems work by generating thermal energy at a central plant and distributing it to multiple buildings through underground pipes. These systems can incorporate a wide range of technologies and energy sources, including renewable and low-carbon options. This approach is significantly more energy efficient and environmentally friendly than traditional individual building systems, resulting in lower greenhouse gas emissions and cost savings for communities.  

The Investment Opportunity

 
Corix is wholly owned by BCI through our Infrastructure & Renewable Resources (I&RR) program. With a strong track record of delivering reliable, cost-effective and sustainable energy infrastructure, Corix is well positioned for growth as cities and residents seek greater density and energy efficiency. Corix’s partnerships with developers, municipalities, universities, and hospitals enable the delivery of dependable, low-carbon energy solutions. Many of Corix’s projects operate under cost-of-service revenue regulation, meaning a regulator sets the rates to ensure the utility recovers its costs and earns a reasonable return. This model provides stable, predictable cash flow and supports our goal of generating sustainable, long-term returns for our clients, and a fair and transparent energy cost structure for Corix’s customers. BCI’s investment in Corix directly supports our environmental, social and governance (ESG) ambitions. The company’s innovative approach to delivering energy helps buildings and neighbourhoods dramatically reduce their carbon footprints compared to conventional heating and cooling systems, while also offering a more affordable model for residents and businesses. Today, Corix operates 12 significant energy utility systems across North America, with a healthy pipeline of opportunities for continued growth.  

Prominent Projects in British Columbia

 
Several of Corix’s district energy projects are located in British Columbia, including in Vancouver, Burnaby, Victoria and Richmond, with many continuing to expand through new phases. Corix’s work in Richmond is just one example of how innovative energy systems can drive positive long-term environmental results. In partnership with the City of Richmond’s Lulu Island Energy Company, Corix launched the Oval Village District Energy Utility in Richmond in 2011, with the first phase operational in 2014. Building on this success, the parties announced the City Centre District Energy Utility in 2022. This project integrates and expands the existing Oval Village system into a broader, low-carbon thermal network designed to support Richmond’s long-term growth with clean, affordable energy. Backed by $175 million in low-cost debt from the Canada Infrastructure Bank, Corix is delivering a low-carbon energy system that will connect more than 170 new sites in Richmond to the utility by 2050. By recovering low-carbon heat from sewer mains, the project will cut greenhouse gas emissions by one million tonnes and expand the system tenfold to 50 million square feet, making Richmond a model for sustainable urban energy.  

Supporting Corix’s Growth

 
BCI is pleased to support Corix in completing its largest growth initiative to date: building and operating a district energy system for Utah City, a major new development near Salt Lake City, Utah. BCI has committed to providing additional capital to Corix over the next decade to finance this significant project. Corix has partnered with Flagborough LLC to build and operate a low-carbon district energy system for the 350-acre Utah City community, located on the shores of Lake Utah. The first phase of this US$5 billion, 700-plus-acre development will include residential, retail, commercial and medical research facilities – including space for a new health care facility that will be owned and operated by the Huntsman Cancer Institute – in high-density, transit-friendly neighbourhoods. With Utah among the fastest-growing states in the U.S., this project is vital for meeting the region’s housing and environmental sustainability needs. Corix’s integrated system for Utah City will include a connected district heating and cooling system where equipment and energy sources are shared between buildings through a centralized energy plant, while also enabling the use of waste heat from nearby facilities. The system will be built to grow and adapt as Utah City expands, eventually connecting over 19 million square feet of mixed-use space. The first phase, consisting of nearly two million square feet, is expected to be operational in early 2026. “Projects like Utah City demonstrate why Corix is a leader in the district energy space. Their ability to design scalable and adaptable systems that can grow with communities while incorporating technologies such as waste heat recovery shows innovation in action,” said Zaman Velji, Senior Managing Director, I&RR. Corix’s growth strategy focuses on expanding its presence in key North American markets and advancing sustainable energy solutions. By combining technical innovation, operational excellence, and a strong commitment to community engagement, Corix has a long growth trajectory ahead. Learn more about Corix’s most recently announced project in the news release and video below.

BCI believes renewable energy represents a powerful opportunity to achieve strong long-term returns while aligning with our clients’ investment objectives and sustainability goals. In 2016, BCI Infrastructure and Renewable Resources (I&RR) invested in Isagen, a leader in renewable energy generation in Colombia. This investment represented an opportunity to acquire critical infrastructure assets with significant potential for growth to meet Colombia’s rising electricity demand.

Isagen holds a prominent position within Colombia’s energy sector as the third-largest electricity generator by market share and a pioneer in renewable energy. Its power generation portfolio has a capacity of more than 3.1 gigawatts across 27 power plants (15 hydroelectric, 10 solar parks, and two wind farms), meeting more than 18 per cent of Colombia’s national energy demand with 100 per cent of production derived from clean and sustainable sources. Powered by a workforce of approximately 600 direct employees and nearly 800 contractors, the company operates both conventional dam-based hydroelectric plants and run-of-river systems, while its recent diversification into wind and solar has further bolstered its renewable portfolio.

Colombia’s solid economic growth, increasing electricity demand, and access to premier solar, wind, and hydro resources make it an attractive market for renewable energy investments. In 2016, BCI became a significant minority equity investor, as part of a consortium led by Brookfield Asset Management. This marked our first direct infrastructure investment in Colombia and reflects BCI’s forward-looking approach to aligning financial returns with environmental responsibility.

One of the key drivers behind our investment was the stability of Isagen’s cash flows. The company’s diversified customer base spans electricity distributors and industrial clients in sectors such as metals, mining, manufacturing, and agribusiness. By selling over 70 per cent of its electricity through inflation-linked contracts averaging seven years in duration, Isagen mitigates risks associated with unpredictable rainfall patterns that can affect hydroelectric generation. This thoughtful approach to long-term contracts underscores the resilience of its business model.

Sustainability in Practice

Sustainability is deeply embedded in Isagen’s operations, with 100 per cent of its energy production coming from renewable sources. Isagen’s commitment to sustainability was evident in its decision to sell its only thermal power plant in 2022, in order to focus exclusively on renewable energy generation. The company also actively measures and offsets its carbon footprint while promoting efficient water and energy use among customers. Additionally, Isagen’s Integral Energy Management Program helps industrial clients optimize their energy consumption, reducing greenhouse gas emissions by over 10,000 tons annually.

Isagen’s environmental stewardship extends beyond clean energy production. The company integrates environmental considerations into all operational decisions – implementing programs for water governance, vegetation cover management, biodiversity conservation, and sustainable land use around its facilities. Additionally, Isagen fosters strong relationships with local communities through social development projects that drive shared value and economic growth.

Through its strong ESG ambitions and focus on renewable innovation, Isagen exemplifies how utilities can balance profitability with environmental stewardship. These practices continue to make the company well-suited to BCI’s I&RR portfolio, as we believe companies with robust ESG practices are better positioned to generate long-term value for investors.

Jim Pittman and Industry Leaders Discuss the Path Forward for the Private Equity Sector at the 2025 Milken Conference

The Milken Institute Global Conference is renowned for convening experts and innovators shaping the future of finance, business, technology, health, industry, and society. At this year’s event, the panel “Private Equity Transformed: Access, Strategy, and Innovation” brought together leading voices in private equity, including Jim Pittman, EVP, Global Head of Private Equity at BCI, alongside executives from KKR, General Atlantic, and Thoma Bravo. The discussion focused on evolving trends in deal flow, performance, value creation, talent, and sector appetite.

Trends in Private Equity Investment Exits

A central theme of the panel discussion was the shifting dynamics in private equity exits. BCI’s Jim Pittman highlighted that while 2021 saw a record US$1.2 trillion in deals sold, 2024’s figure plummeted to just US$250 billion, pointing to a confluence of factors including inflation, geopolitical risk, and supply chain disruptions. All panelists agreed: “Nothing kills M&A activity more than uncertainty.”

After several years marked by sluggish distributions and a backlog of aging portfolio companies, 2025 is showing signs of renewed activity. Panelists expressed cautious optimism that, as volatility decreases, the IPO market could see significant improvement. Strategic corporate buyers are also showing early signs of renewed M&A interest. This optimism is supported by industry data, with global exit values rising 34% year-over-year and exit counts up 22%, according to a recent Bain report, signaling that pent-up demand is beginning to translate into real deal flow.

Pittman’s commentary reflected a broader industry push to unlock liquidity for limited partners (LPs) after several lean years. He pointed to the growing relevance of the secondary market and continuation funds as alternative paths for exits. GPs are also looking at other ways of unlocking liquidity through “componentized sales” – selling off portions of their holdings to unlock liquidity. One GP emphasized the importance of considering multiple exit strategies: “Less than 20 per cent of [their] realisations now come from IPOs. Over 50 per cent come from some type of strategic sale, such as large corporate buyers.”

The panel also highlighted a healthy pipeline of investments at attractive valuations. “I’m super excited about the buyer’s market. We’re buying things 50% off or more-pricing we haven’t seen since the global financial crisis,” remarked one panelist.

Pittman reinforced that BCI is actively seeking opportunities in sectors with strong fundamentals and operational value creation potential. He noted that BCI remains active, having sold three companies and acquired three others in the past eight months. In the past year, BCI Private Equity unlocked C$2.8 billion of capital through asset sales, successfully generating liquidity and securing strong realized returns as a result of the program’s focus on active portfolio management. The sale of BCI’s majority stake in Hayfin Capital and the announced sale of our investment in Ziply Fiber are two recent examples, in addition to secondary fund sales.

Rethinking Private Equity Returns and Value Creation

The panel also addressed how to best model and interpret expected returns in today’s environment. Pittman cautioned against relying solely on historical benchmarks of internal rates of return (IRRs), noting that high returns in recent years were often fuelled by leverage and favourable market cycles. “If we secured 25 per cent returns in the past, we should be able to get that in the future – but the reality is changing,” Pittman explained. “The longer assets sit, the lower those IRRs go – unless you have great value creation activities or other triggers you can pull.”

As the industry sees IRR dropping below historical averages, Pittman and other panellists stressed the need for more nuanced performance metrics, especially as hold periods lengthen and exit routes become more complex. The dispersion of returns in private equity is significant: top-quartile GPs vastly outperform the median, often by leveraging in-house value-creation talent. Rather than focusing solely on headline performance, a more detailed approach-disclosing the sources of returns, such as leverage, growth, or multiple arbitrage – is helping LPs understand which levers are driving GP performance.

The group also discussed AI as a value creation tool, particularly for unlocking productivity savings and revenue enhancement at portfolio companies. Most benefits from AI were seen in enhanced productivity and operating efficiencies, though some companies are using it to drive revenue growth. As one panelist put it, “the playbooks are repeatable.”

Recognizing the value AI will play in future private equity investments and business processes at large, BCI has already implemented AI as part of its value creation toolkit – to drive innovation, streamline processes, and unlock new analytical capabilities. BCI Private Equity’s Venture and Growth team is also actively investing in and sourcing new opportunities to partner with companies that could benefit from AI implementation, or are in AI-adjacent industries, such as FinTech, cybersecurity, development platforms, logistics, insurance or quantum computing.

Talent: A differentiating factor for Private Equity Performance

Talent emerged as a critical driver of private equity performance, especially as returns increasingly depend on value creation. Panelists discussed the growing complexity and importance of these activities, advocating for a shift from transactional workforce management to long-term, in-house talent development. Investing in human capital and operational expertise delivers significant benefits.

Many private equity firms are generating value through operational improvement playbooks that in-house value creation teams can consistently apply across investments. As one panelist said: “If you have best-in-class [value creation] talent to bring to the table, you can have a reliable source of alpha. It’s a playbook that you can execute on.”

The panel also advocated for transparent alignment structures and broad-based ownership to drive behaviours and accelerate growth. When all stakeholders share goals and incentives, and you have very transparent KPIs, you’re likely to see a higher rate of change, and that often leads to higher rate of growth.

Talent is always top of mind at BCI. BCI Private Equity recently welcomed several investment professionals – growing both in-house value creation capabilities and sector expertise within its high-performing team.

Sector and Sourcing Focus: Appetite and Opportunity

Industrials remain a key sector for some GPs, who emphasized “local-for-local” supply chains as a unique opportunity amid shifting global trade. Pittman noted that industrial assets make up about 18 per cent of BCI Private Equity’s portfolio, with a large portion held as co-investments. He acknowledged the unique nature of industrial investments, describing them as “capex heavy” and requiring proactive M&A and trend anticipation. Other panelists preferred asset-light businesses in today’s unpredictable market.

Private equity deal sourcing has also shifted. The number of companies private equity teams meet with has significantly increased – to nearly 10x the number of firms they met with a decade ago, and meeting companies early is critical to not missing out on opportunities. Panelists also acknowledged a shift in where opportunities are currently being sourced, with several mentioning that most of the recent opportunities they have sourced are located outside of the U.S., whereas just a few years ago the majority were sourced within it. Europe is a key geography, with many opportunities emerging from family-owned private businesses. These companies need a partner to help them be best in class, and they need a partner to help them through succession, digitization and automation trends.

BCI Private Equity has already recognized the opportunity in Europe, and proactively expanded to include a new London-based team.

Key Takeaways

The insights from Pittman and fellow panelists underscore several key trends for global private equity investors:

• The exit window is reopening, with IPOs and strategic sales gaining momentum as market volatility eases.
• IRR remains a key metric, but is under more pressure due to longer hold periods. This is prompting a shift toward more holistic performance metrics and longer-term value creation activities to retain solid returns.
• Talent is a core driver of private equity success, with alignment and engagement critical to outperformance.
• Appetite for capex-heavy investments is mixed, though attractive valuations are presenting rare buying opportunities.
• A growing proportion of investment opportunities are now being sourced outside of the U.S.

The future of private equity, as seen through the panelists’ lens, will be defined by adaptability, operational discipline, and a broader perspective around creating portfolio liquidity. As Jim Pittman put it: “The art of the deal is both the buy and the sell”.

Watch a recording of the panel discussion here:

It’s National Volunteer Week in Canada, and this year’s theme Volunteers Make Waves highlights that every contribution, big or small, builds momentum and has the power to create ripples of positive change.

Last April, we made waves by issuing an ambitious challenge for BCI employees, one aiming to double the 860 hours contributed the year before. The idea was simple: collectively volunteer 2,000 hours – the equivalent of having one BCI employee dedicated full time to giving back – over just 12 months. Thanks to the incredible commitment and passion of our people, we not only achieved but surpassed this goal, contributing more than 2,300 hours in support of nearly 100 non-profits and causes.

Across our global offices, over 380 employees stepped up, using their 14 hours of paid volunteer time to give back individually and as teams. From teaching students about financial literacy with JA British Columbia and preparing Camp Shawnigan for summer programs to serving meals at Rainbow Kitchen, sorting donations at The Greater Vancouver Food Bank and Our Place Society, and everything in between.

Kudos to these champions for supporting healthy and vibrant communities, fostering a culture of caring, and positively contributing to the places where we live and work. We’re excited to continue the momentum!

Learn more about how we give back at BCI.ca/community  

Preparing Camp Shawnigan for summer programs  

Sorting clothing donations at Our Place Society 

 
A day of volunteering at the Greater Vancouver Food Bank

Food security is one theme BCI’s Infrastructure & Renewable Resources (I&RR) team continues to see as an opportunity – for both the communities served by the food producers, and the investors backing their growth and innovation. Costa Group is a great example of how high-quality produce farming can be combined with leading edge harvesting and distribution innovations to ensure peak production and global reach.

In 2024, BCI’s I&RR program made a significant investment in Costa Group – a leading global grower, packer, and marketer of fresh fruits and vegetables, based in Australia. The take private transaction completed by a consortium formed by BCI, Paine Schwartz Partners and Driscoll’s, valued Costa at approximately A$2.5 billion and reflects BCI’s continued strategy of geographic and sector diversification. Costa Group, with over 120 years of history, has established itself as an integral part of Australia’s produce industry, particularly known for its contributions to berry production and innovative plant varietals.

Costa Group’s operations are extensive, spanning approximately 8,000 planted hectares of farmland, 40 hectares of glasshouse facilities, and three mushroom growing facilities across Australia. The company’s international presence includes majority-owned joint ventures in Morocco and Asia, covering about 750 planted hectares. With a workforce of over 10,000 employees, Costa Group has positioned itself as a leader in five core categories: berries, mushrooms, glasshouse-grown tomatoes, citrus, and avocados.

The Investment Opportunity

BCI sees many opportunities for Costa to continue its growth trajectory by capitalizing on the company’s expanding international footprint, leadership in high-value crop production, and use of innovative farming practices. Importantly, Costa’s geographic and product diversification reduces weather and climate related risks, ensuring more stable production and supply chains. BCI also sees significant potential in Costa’s partnerships with Driscoll’s Inc., the world’s largest berry marketer. This collaboration supports Costa’s rapidly expanding international berry operations through joint ventures in Australia, Asia and the Americas. By investing in Costa, BCI has strategically expanded its portfolio of Australian and renewable resource investments, while supporting a company that exemplifies innovation and resilience in agriculture.

Innovation in Practice

Costa Group’s success is underpinned by its focus on innovation and technology. The company has implemented artificial intelligence across several of its berry crop farms, measuring 14 variables such as rain, light, wind, temperature, and soil in real-time. This AI-driven system creates localized predictions of berry production and optimized harvesting dates, allowing Costa to better manage labour and logistics costs. Used in covered agricultural poly tunnels, this technology enables Costa to create ideal growing conditions for optimal crop yields.
The company’s commitment to innovation extends to its harvesting methods. Costa is also exploring the use of smart robots for berry harvesting, which can detect ripeness and pick berries at optimal times, ensuring the freshest products with minimal waste. These robots are capable of harvesting berries as fast as, or faster than, traditional methods.

Costa Group’s forward-thinking approach is further exemplified by its recently launched Innovation Centre at its glasshouse facility in New South Wales. This 4,000 square metre facility is currently testing nearly 30 new types and varieties of produce, including popular items like cucumbers and innovative new fruit and vegetable varieties. This investment in research and development underscores Costa’s commitment to diversifying and extending its product offerings, promising exciting developments for both domestic and export markets in the future.
Costa has also been recognized for its move towards more sustainable food packaging, and has won numerous awards for packing innovation. This includes for their recycled paper grape packaging, which uses a paper mesh front, allowing people to see the fruit inside the bag from all angles without the use of plastic. And through the use of unique QR codes, Costa now enables its end customers to trace the precise farm avocados were harvested from, and receive tips on storage and recipes.

As Costa Group continues to evolve, its focus on innovation and technology will remain an important part of its growth strategy. With ongoing partnerships and investments in cutting-edge farming solutions, BCI believes the company is well-positioned to continue growing its operating footprint and global reach.