May 19, 2020
CDPQ and Generation Investment Management announce US$3bn sustainable equity partnership
In a 9 October press release, La Caisse de dépôt et placement du Québec (CDPQ) and Generation Investment Management LLP (Generation) announced a partnership that will pool their resources to invest in sustainable, long-term business ventures
The partnership will see the two firms invest an initial US$3bn with a significant 8-15 duration.
In the statement, the firms said this “is a much longer period than typical private equity investments and better suits the objectives of sustainable value creation to build successful long-term businesses.”
It added that the partnership will seek to invest in firms with “outstanding management teams” and strong outlooks for growth.
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CDPQ CEO Michael Sabia said, "This partnership is a natural match between two like-minded organizations. Sustainability begins with long-term involvement, which is why we made long-term investment the cornerstone of CDPQ-Generation.”
“We both integrate ESG principles at the core of our investment strategies and believe they go hand-in-hand with attractive returns.”
“We also have tremendous complementarity, as we bring together Generation's world-class equity research team with CDPQ's investment expertise and global network."
The statement added that the partnership’s first investment will be in global fintech company FNZ, acquiring a majority stake in a deal that values the firm at £1.65bn.