Investment Spotlight

In November 2023, the AIMCo Renewable Resources team entered definitive transaction agreements to acquire the Kimberley Cattle Portfolio. This large-scale cattle breeding business spans almost three million hectares and supports 135,000 head of cattle in the Kimberley region of Western Australia. The transaction is expected to close in the first half of 2024 subject to regulatory approvals.

Capital Power, one of North America’s leading independent power producers, announced the acquisition of two combined-cycle gas generation facilities in the U.S. in November 2023. AIMCo’s Public Equities team led the private placement of subscription receipts to support financing of the $1.5 billion deal. The transaction aligns closely with the team’s view that energy transition outcomes can lead to both long-term value creation and a low-carbon energy system.

New Mountain has been one of AIMCo Private Equity’s key fund relationships since 2013, and the team was excited to partner with them again on their Fund VII. New Mountain targets buyout investments in North America.

Keter Environmental Services is a leading U.S. based outsourced provider of managed waste solutions, with a focus on multi-tenant properties (i.e. malls). Investing alongside fund partner TPG Growth, this investment exhibits many of the characteristics AIMCo Private Equity seeks including being a market-leading player in a growing market, and demonstrating a stable, recurring revenue base.

AIMCo’s Infrastructure team invested in the DigitalBridge Credit Fund. This investment provides an opportunity to gain attractive risk-adjusted exposure to the digital infrastructure sector and furthers AIMCo’s knowledge in private infrastructure credit.

AIMCo’s Mortgages team completed the largest transaction for the portfolio in December 2023. The $312.5 million 5-year loan is secured by a 2.8 million square foot industrial portfolio in the Greater Toronto Area that is owned by Oxford Properties (25%) and TPG (75%).

AIMCo acquired a 164,000 square-foot grocery-anchored retail centre located in a mature residential community along Country Hills Boulevard in North Calgary. Country Hills Town Centre is 99% leased to a roster of necessity-based tenants anchored by Sobeys and Shoppers Drug Mart. In addition, there is a strong supporting tenant roster of service-oriented retail that includes banks, quick service restaurants, and a variety of medical and dental services.

Stanford Crossing is a single-family build to rent development comprised of 195 two-storey duplex homes, located in a fast-growing suburb in Northern California with convenient access to the major commuter corridors linking San Jose, Oakland, and San Francisco. The property is one of a four property portfolio developed under a programmatic joint venture, for which AIMCo has recently approved a second tranche of capital to continue to build out the portfolio of purpose-built, single-family rental communities in key undersupplied markets across the U.S.

Through a strategic partnership with KKR, AIMCo’s Private Debt & Loan team invested in the senior secured loans of a leading home services business. The company offers residential HVAC, plumbing and electrical maintenance and repair services in the United States. The investment fit well into the Private Debt & Loan mandate given the non-discretionary nature of repair and maintenance services, market leading position of the company and attractive risk-adjusted return offered.