BCI is pleased to announce the reappointment of Donna Lommer and Weldon Cowan to the Board of Directors.

The Municipal Pension Board of Trustees has reappointed Donna for a three-year term through December 31, 2027. Donna is a member of the Audit Committee and was first appointed on January 1, 2019.

Donna is active on the board of trustees for the Municipal Pension Plan and is a past board member of the Healthcare Benefits Trust and Occupational Health & Safety Agency for Healthcare in British Columbia.  

The College Pension Board of Trustees has reappointed Weldon for a three-year term through August 31, 2027. Weldon is a member of the Human Resources and Governance Committee and was first appointed on September 1, 2021.  

Weldon is currently Chair of the College Pension Board of Trustees and Chair of the Interplan Trustee Education Committee. He was a Director of the BC Pension Corporation from 2012 to 2019. During that time, he served as Chair of the BC Pension Corporation Board of Directors for four years and vice-Chair for three years. 

BCI’s Board is structured in accordance with the Public Sector Pension Plans Act. Of the seven-member Board, the four largest pension plan clients each appoint a member from their board of trustees, and the Minister of Finance appoints the other three — two of which must be representatives of clients.

Learn more about BCI’s Board of Directors.

Meet Gina Dennison, Associate, Partnership Portfolio – Public Markets, and co-chair of BCI’s employee-led United Way Committee. Gina’s community mindset stems from her own small-town upbringing and desire to set a strong example for the next generation. Under her leadership, BCI employees raised over $60,000 for the United Way Southern Vancouver Island (UWSVI) last year alone, adding to our $1.2 million cumulative donations since 2000. Beyond BCI, Gina volunteers with many local charities, coaches youth sports, and sits on the board of her kids’ non-profit childcare organization. She is determined to raise awareness of the many ways that people can make a difference and is a firm believer that no community contribution is too small.

Q: Why did you get involved with the United Way?
A: Growing up with two hard-working, self-employed parents, I was taught to give back, big or small, with either time or money. Whether it was volunteering on an advisory board, maintaining the local sports fields, coaching, or giving anonymously to those in need – my parents always found ways to contribute. I want to be a good role model for my young children, as my parents were for me, and take every opportunity to show that giving comes in many forms. When I returned from parental leave in 2019, I wanted to get back to volunteering, but with a young family, my free time was limited. BCI’s employee-led United Way Committee presented a unique opportunity to get involved at work, and I was immediately drawn to the UWSVI because of its incredible impact and support for diverse agencies and programs in Victoria. The organization takes a holistic view of healthy communities, which means donations are distributed to the greatest need. Joining the Committee not only provided a meaningful way to give back to my community, it also brought me closer to a fantastic group of colleagues from across BCI.

Q: How are you sparking change in our community?
A: In my role as co-chair for the United Way Committee, I work to inspire BCIers to get involved and increase our positive impact in the community. BCI employees have supported the UWSVI since 2000, collectively donating over $1.2 million, and I want to continue this momentum. The annual United Way campaign at BCI has evolved since 2020, after facing the unique changes to hybrid work and the addition of global offices. In response to these changes, the committee organized a first-ever awareness event with four local non-profits, ran a major collection drive for local shelters, and organized volunteer events with United Way-supported organizations. We’re now looking at even more ways to make giving back more accessible and reinforce its benefits where we live and work. Beyond BCI, I am always looking to lend my time as my parents did. For example, I am a volunteer board member at my kids’ non-profit childcare organization where I use my business background and experience to advise on operations and oversight to ensure quality childcare for the many families who depend on it.

Q: What advice do you have for those looking to get involved in their communities? 
A: I encourage people to get curious about both how they want to give back and the need in their community. You may be surprised about how often your unique skills are exactly what an organization is looking for. From the United Way to coaching Little League, giving is meaningful no matter what form it takes. Without volunteers, many of the community services that my family and others rely on simply wouldn’t be there. Juggling work, family, and community commitments is a balancing act, so it’s important to determine what you can do and start small. Grassroots initiatives and employee-led committees at BCI can be a great way to start your volunteer journey and connect with like-minded people.

BCI offers every employee 14 hours of paid volunteer time each year to make a difference where we live and work. We appreciate our many team members who are champions in our communities. They are part of how we foster a culture of caring and make a positive impact for all. Learn more about how we give back at BCI.ca/community

To own the largest tower portfolio in India and is the largest platform globally ex-China with 257,000 telecom sites

Telecom Infrastructure portfolio will be housed under the new brand name Altius

Data Infrastructure Trust (“DIT”), an Infrastructure Investment Trust sponsored by Brookfield Asset Management (“Brookfield”) along with affiliates of investors including British Columbia Investment Management Corporation (BCI) and GIC today completed the acquisition of 100% of American Tower’s operations in India (“ATC India”). This transaction, approved by the Competition Commission of India, comprises the buyout of approximately 76,000 communications sites in India for an enterprise value of INR 182 billion (~$2.2 billion). With this acquisition, the Brookfield-led consortium reinforces its commitment to connecting India with an expanded portfolio of 257,000 telecom sites.

DIT currently houses Summit Digitel and Crest Digitel and is managed by its Investment Manager, Data Link, an affiliate of Brookfield. With this acquisition, Summit Digitel, Crest Digitel, and ATC India will be combined under the new brand name: Altius. The new brand embodies the organization’s commitment to developing and managing the highest quality telecom infrastructure that fuels progress and innovation for connecting India. This expanded telecom infrastructure footprint will ensure Altius is well positioned to provide a broader array of solutions to India’s telecom ecosystem.

Commenting on the acquisition, Arpit Agrawal, Managing Partner, Head of Infrastructure, India & Middle East, Brookfield said, “Our expertise, rooted in our history as an owner and operator of high-quality businesses, is exemplified by our acquisition of ATC India. It complements our existing business and further strengthens our footprint, creating the largest tower portfolio in the country and one of the largest platforms globally. We are pleased to continue to support the Digital India initiative with acquisitions of scale.”

Munish Seth, Group Managing Director, Data Link, said, “We are excited to enter the next phase of growth, where our enhanced digital connectivity will play a crucial role in transforming India’s telecom infrastructure. The acquired sites diversify Altius’ revenue streams creating value for our unit holders, while our scale, operational strength, and innovative capabilities position us to meet the evolving needs of the Indian telecom market and create long-term value for all stakeholders.”

This is Brookfield’s third acquisition in the Indian telecommunications space. In 2022, Brookfield acquired a portfolio of 6,300 indoor business solution sites and small cell sites, which advances the rollout of 5G and enables telecom operators to extend their coverage capacity in difficult-to-access and dense areas. Brookfield also has a portfolio of approximately 175,000 towers that were acquired in 2020 from Reliance Industrial Investments and Holdings Limited.

In India, Brookfield has approximately $29 billion in assets under management across Infrastructure, Real Estate, Renewable Power & Transition, and Private Equity.
 
About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.
 
For more information, please visit our website at bam.brookfield.com or contact:
Shveta Singh
Email: shveta.singh@brookfield.com; Mobile No: +91-9004287034
 
About Data Infrastructure Trust
Data Infrastructure Trust (BSE: DATAINFRA) is an infrastructure investment trust (InvIT) set up with the objective of undertaking investment activities as an InvIT, under the SEBI InvIT Regulations and is sponsored by Brookfield Asset Management. DIT is managed by its Investment Manager, Data Link, an affiliate of Brookfield. DIT is the world’s largest telecom infrastructure platform (ex-China) and currently owns a portfolio of 257,000 telecom sites under the Altius brand.
 
About British Columbia Investment Management Corporation
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross assets under management as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia public sector clients. BCI’s infrastructure & renewable resources (I&RR) program, valued at approximately C$28.1 billion, invests in tangible long-life assets in the Americas, Europe, and Asia Pacific region, including direct investments in regulated utilities, energy, telecommunications, transportation, timberlands, and agri-businesses. BCI’s I&RR program has a global portfolio with seven active investments in the Asia-Pacific region. The program continues to expand its presence in the region with the addition of this investment in Data Infrastructure Trust.

By Thomas Helm
PUBLISHED: September 2, 2024

Republished with permission. Read the original article on Net Zero Investor

BCI’s Coulson: “private markets are well-suited to engagement”

Part 3 of NZI’s Stewardship Series looks at why the Canadian pension giant has become increasingly focused on private market stewardship

One of Canada’s largest institutional investors, British Columbia Investment Management Corporation (BCI) has been engaging companies on their climate impacts for over two decades.

BCI manages a portfolio of public and private market investments on behalf of 29 British Columbia public sector clients, including 10 public sector pension funds, three insurance funds, and various special purpose funds.

With approximately half of its $250bn AUM invested private markets, BCI is increasingly focused on stewardship in private markets. Net Zero Investor sat down with Jennifer Coulson, senior managing director & global head, ESG, to find out more.

Of the top 100 carbon emitters, only 30 are listed on a stock exchange. Is engaging with private markets an important  part of your efforts to reach net zero by 2050?
One of our climate ambitions is to ensure at least 80 per cent of BCI’s carbon-intensive investments across asset classes have set mature net-zero aligned commitments by 2030. With about half of our $250bn in gross AUM invested in private markets, engagement with our private portfolio companies and partners is critical to achieving this goal, as well as managing climate risk and finding new ways to create value for our clients through the energy transition.

To support our increasing focus on engagement in private markets, we have grown the ESG teams embedded in our private equity and infrastructure and renewable resources programs, and recently developed a data platform that automates and provides on-demand access to climate information to empower portfolio managers and our investment teams.

While ESG stewardship in private markets is still developing, these asset classes are well suited for engagement, particularly to capture long-term sustainability trends. Investors are uniquely positioned and incentivised to support ESG performance and initiatives where it will increase risk-adjusted returns for clients. Through engagement, our partners and portfolio companies can tap into our team of experts and build value over a longer time horizon that can be realised at exit, which we see as a competitive advantage.

Can you provide some examples of specific engagements?
Over the past year, we have engaged extensively with five portfolio companies in our private equity programme, representing $1.6bn in net asset value, to establish and quantify ESG-related initiatives. Through this work, we have identified numerous opportunities for value creation and are working to execute on ESG-related initiatives that we believe can unlock hundreds of millions in value for our portfolio.

One example is PS Logistics, a leading flatbed truck transportation and logistics provider in the US. Collaborating with management, we quantified the financial benefit attributable to their “driver-first” culture. Management’s focus on prioritising drivers has led to distinct financial benefits such as reduced insurance premium costs, avoidance of costs in recruiting and training new drivers, lower energy costs through route optimisation, and greater market share from clients who are focused on sustainability in their supply chain.

Then, in our infrastructure & renewable resources program, we provided active oversight and strategic direction as a board member and owner of Mosaic Forest Management (Mosaic), a timberland management company located in Canada, on the development of its Big Coast Forest Climate Initiative. The overall direction of the company involves selling certified carbon credits generated from conservation of old forest habitats. BCI participated on a carbon credits committee to oversee the evaluation and execution of the initiative.

Is there a big difference between stewardship practices in private and public markets?
Stewardship across public and private markets have a shared overarching goal: leverage your rights as an owner to manage risk and create long-term value for clients and beneficiaries. In all cases, we prioritize material issues and opportunities, and focus our time and effort where we can have the highest impact.

The differences are often driven by the nature of the relationship between the investor and the investment. Private and public company owners have distinct levers of engagement available to them.

For example, investors in public markets typically benefit from consistent and predictable regulatory and listing requirements, all of which provide an annual opportunity to engage through proxy voting. As a large institutional investor, we often have access to company boards and management.

However, shareholder bases aren’t always aligned on climate issues. Our direct engagement efforts, therefore, require patience and persistence. Being effective means taking the time to build credibility with management teams as they begin to see us as a source of trusted advice. Where escalation is required, we can engage collaboratively or use tools like shareholder proposals as well as advocating for broader public policy changes (examples: methane, diversity, CA100+).

As you can imagine, our public markets portfolio is rather large so we also need to be selective and prioritise the most material issues and opportunities to engage on.

For private markets, there is less standardisation among companies, particularly around disclosures. This can make benchmarking and industry-level analysis, which is often needed for engagement, more challenging. However, concentrated ownership, the governance rights we hold with our portfolio companies, and regular access to management are clear advantages.

Where we play a governance role, there is oversight of management strategy, and we can set expectations for performance, including on climate change. Based on the holding periods for many private investments, our engagement priorities are typically focused on longer-term outcomes where we can work alongside the company to deliver value from sustainability initiatives over time.

Where we aren’t a direct owner, we engage our general partners to align expectations, exchange expertise, and collaborate on longer term opportunities. Last year, we engaged with more than 50 per cent of our private equity fund portfolio general partners, based on assets under management, on ESG and climate-related opportunities. This included conducting deep-dive educational sessions to showcase leading practices in ESG integration.

It sounds like, in certain cases, institutional investors can exert a fair amount of influence over companies in their private equity portfolios.
In public markets, change does happen, but it can be slower as companies have a broad and diverse shareholder base.

In private markets, investors with larger direct ownership stakes, which are often accompanied by governance rights like board representation, can have more influence on corporate strategy and management decisions, including climate action.

While there is more potential influence, engagement on ESG and climate change are often not standalone initiatives and tend to be integrated into broader discussions between the investor and company. Because of this structure, engagement in private markets functions more like a partnership – between the GP, LPs, and the portfolio company.

At BCI, we help to create strong, healthy communities for all through initiatives like fundraising and volunteering, and we are proud of the dedication of our employees to making positive impact.

The United Way of Southern Vancouver Island (UWSVI) recently recognized our efforts with the Spirit Award, a testament to our commitment to giving back. The award recognizes an organization for achieving exceptional results in employee fundraising and demonstrating community leadership in multiple ways.

Last year, BCI employees raised more than $60,000 for United Way chapters across Canada. Our selection for this award was based on our employees’ coordination of and engagement in creative and meaningful fundraising activities during our annual United Way campaigns, consistent growth in our current and past campaign results, and our long-term support for the UWSVI and our local communities.

“BCI consistently demonstrates that giving back to the community is deep-rooted in their culture,” said Erika Stenson, Executive Director of USWVI. “We are delighted to provide this well-deserved recognition for always going above and beyond, and truly making the places we live and work better for all.”

Throughout the most recent campaign, BCI’s grassroots campaign committee organized diverse opportunities for employees to get involved and make a difference. This included unique fundraising initiatives, a donation drive for Cool Aid Society, volunteer days at Soap For Hope Canada, and a speaker panel featuring representatives from a range of local organizations who shared personal stories and discussed the needs, challenges, and opportunities in our communities.

“After more than two decades, BCI’s employee-led campaign committee continues to find new and innovative ways to inspire giving back. This year’s speaker panel, featuring local non-profit partners, was uniquely impactful and showcased the extensive community ecosystem we support through the UWSVI,” said Shauna Lukaitis, BCI’s Chief Operating Officer and long-standing executive champion for its campaign committee. “I am proud of our collective impact and grateful for our passionate colleagues leading these initiatives, which not only benefit our communities but foster a strong culture of caring.”

Since 2000, BCI employees have organized an annual giving campaign that has raised awareness and contributed more than $1.2 million to UWSVI. These funds are directed to priority areas, such as support for isolated seniors, family resources, mental health and addiction services, and fostering diverse and equitable communities.

Beyond fundraising, BCI offers every employee 14 hours of paid volunteer time each year to make a difference where we live and work. In 2023, BCIers volunteered more than 800 hours at over 30 organizations.

Learn more about the UWSVI Spirit Awards and how we give back BCI.ca/community

Our private equity group launched its venture and growth investment strategy in 2021. Ashton Scordo and Christian Grunt from the Venture & Growth team discuss the strategy and offer a perspective on the implications of artificial intelligence (AI) – and its impact on the group’s investment thesis, as well as the broader organization.

BCI is pleased to announce that we have agreed to invest an additional C$125 million in WSP Global Inc. (TSX: WSP) through a private placement of subscription receipts to partially finance WSP’s announced acquisition of POWER Engineers.

“We are pleased to support WSP with their announced acquisition of POWER Engineers,” said Jeff Morris, CFA, Senior Managing Director, Active Equities at BCI. “WSP is a Canadian champion and global leader in the engineering and consulting industry. The proposed acquisition propels WSP to a top position within the North American power and energy engineering industry – adding another pillar of growth for the company in an area that is critical to the global energy transition. We believe the acquisition is both strategically and financially compelling, and expect WSP’s growth will continue to create value for our clients.”

Tokyo, August 8, 2024 – Rakuten Group, Inc. and Macquarie Asset Management today announced that Rakuten Mobile, Inc., a subsidiary of Rakuten Group, will raise between JPY 150 billion to 300 billion (around $US1~2 billion)^*1 in funds for the sale and leaseback of a portion of its mobile network assets with a consortium of global leading infrastructure investors, led by Macquarie Asset Management and including British Columbia Investment Management Corporation, via the Macquarie Asia­ Pacific Infrastructure Fund 3.

Through this arrangement, Rakuten Mobile will conduct fundraising in the form of a sale and leaseback transaction and will continue to manage and operate these mobile network assets. Rakuten Group will promptly announce the final amount and other conditions in due course.

Mickey Mikitani, Chairman and CEO of Rakuten Group, said, “I am delighted to announce this innovative partnership with Macquarie Asset Management, one of the world’s leading infrastructure investors. They strongly believe in our vision for the future, and together, we’ve made our financial foundation even stronger. Rakuten Mobile is already well on its way to profitability, and with our new initiative, we will continue to build on this momentum as we aim to reach profitability even faster and become the top mobile carrier in Japan.”

Verena Lim, Co-Head of Asia-Pacific Macquarie Asset Management Infrastructure and Chief Executive Officer of Macquarie Group in Asia, said, “We believe Japan’s commitment to revitalize its digital economy and accelerate the pace of digital transformation presents significant opportunities to investors in the digital infrastructure sector. The Rakuten Ecosystem and Rakuten Mobile’s network is at the very forefront of this digital evolution, and we are excited to partner with Rakuten Mobile to support and accelerate its business growth.”

Macquarie has been present in Japan for more than 24 years, and Macquarie Asset Management has been investing in Japan as well as connecting Japanese investors to global opportunities across infrastructure, green investment and real estate. With deep expertise in managing funds in Asia-Pacific, together with on-the-ground teams equipped with strong local market knowledge and deep relationships, Macquarie continues to deliver investment opportunities and value for its clients.

Objective of this funding

The Rakuten Group is committed to its financial strategy of pursuing financing measures that balance growth-oriented investment with mid-to­ long-term financial soundness and is currently working on balance sheet management through a reduction of total interest-bearing debt and proactive debt maturity management.

Rakuten Mobile’s profitability has been improving in accord with a steady increase of its subscriber base and capex reduction. Furthermore, Rakuten Group’s free cash flow in the Internet Services segment and dividends received from the Fintech segment continue to increase. The Group finance strategy aims to establish self-funding for the financing needs of Rakuten Mobile through internal cash flows within the Group by the end of this year.

Rakuten Mobile’s cash flow before marketing costs is making steady progress towards profitability. At the same time, based on the assumption that a certain level of capital investment will continue in the future, it is important for the Group’s financial strategy to ensure adequate liquidity until Rakuten Mobile achieves positive free cash flow on a standalone basis.

The large-scale capital financing of Rakuten Mobile improves its liquidity and establishes its self-funding platform. Additionally, the cash flow generated from Rakuten’s Internet Services and Fintech businesses can be prioritized for reducing its interest-bearing debt, thereby enhancing its liquidity position in the Rakuten Group.

Securing long-term and large-scale funding for Rakuten Mobile from leading global infrastructure investors, to meet immediate funding needs, not only contributes to diversifying the company’s financing methods and expanding its investor base but also is expected to further strengthen the Group’s financial foundation.

Notes

*1 Based on currency rate as of August 5, 2024

*2 The companies will announce the final amount of the financing when fixed.

*3 Capex for this year is expected to be approximately JPY 100 billion, as originally planned. In 2025, maintenance cost is expected to be limited, and there is no expected need for a significant investment related to capacity expansion. Therefore, the capex is expected to remain at a subdued level.

Please note that the information contained in press releases is current as of the date of release.

• Will remain a strategic limited partner in certain Hayfin funds post-closing
• Initially invested in the leading alternative credit asset manager in 2017 and supported growth of the platform

VICTORIA (BC), LONDON & NEW YORK, July 30, 2024 – British Columbia Investment Management Corporation (“BCI”), one of Canada’s largest institutional investors, today announced it has entered into a definitive agreement with Arctos Partners (“Arctos”), a private investment firm, to sell its majority stake in Hayfin Capital Management (“Hayfin” or the “Company”), a leading European-focused alternative asset management firm. Following completion of the transaction, BCI will remain a significant and strategic limited partner in certain key Hayfin fund strategies.

BCI acquired a majority stake of Hayfin in 2017, after identifying a compelling opportunity in the European market for private credit, driven by regulatory and structural demand trends. During its ownership, BCI made significant strategic investments to support the continued growth of Hayfin’s strategies and worked with management to grow the investment teams and platform capabilities to ensure stable asset management and superior risk adjusted performance. Hayfin experienced strong sustained growth and momentum as a result, increasing assets under management from €8 billion at the time of investment to over €31 billion today. Hayfin’s product offering now spans direct lending, special situations, tactical solutions, high-yield/syndicated loans, healthcare opportunities, maritime yield and private equity solutions. Through the course of its ownership, BCI provided strategic input, industry expertise, capital support, and talent resources to help guide Hayfin towards achieving significant growth and scale over a seven-year period. Overall, BCI’s investment is expected to generate a significant return on invested capital and a successful outcome for its pension plan and insurance fund clients.

Jim Pittman, Executive Vice President & Global Head of Private Equity at BCI, said “BCI’s successful private equity partnership with Hayfin’s management reflects our flexible, creative, and collaborative approach to investing. Given our long-term investment horizon, we were able to spot an emerging trend early on in the cycle – in this case the growth of the European private credit market – and help scale Hayfin into the market leader it is today.”

Pittman added, “We are delighted to have reached this agreement with Hayfin and Arctos, delivering an excellent outcome for BCI’s pension plan and insurance clients. We’re extremely proud of the partnership we forged with the Hayfin team over the past seven years, which has delivered significant growth in a critical period for the private credit market. We remain confident in Hayfin, its management team, strategic vision and investment strategies and are pleased to remain as a significant limited partner in certain key funds.”

BCI’s private equity program has a long-established presence in Europe through notable direct investments in multiple industry-leading companies such as Hayfin, BMS Group, ZEDRA, Refresco, Compre Group and Waterlogic, where it can bring its capital and operational expertise to bear. With a growing portfolio of companies and fund partners in Europe, BCI intends to continue accelerating the footprint of its private equity program in this critical region.

The transaction is subject to customary regulatory approvals and is anticipated to close in Q4 2024.

Goldman Sachs International and Moelis & Company LLC served as financial advisors to Hayfin and BCI. Weil Gotshal & Manges LLP acted as legal counsel to BCI, Macfarlanes LLP and Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel to Hayfin, Kirkland & Ellis LLP acted as legal counsel to Hayfin management and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsel to Hayfin’s independent directors.

ABOUT BCI
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross AUM as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its 29 British Columbia public sector clients.

BCI’s private equity program actively manages a C$31 billion global portfolio of privately held companies and funds with the potential for long-term growth and value creation. Leveraging our sector-focused teams in business services, consumer, financial services, healthcare, industrials, and technology, media and telecommunications, we work with strategic private equity partners to source and manage direct and co-sponsor/co-investment opportunities.

CONTACT
Olga Petrycki
media@bci.ca