Montreal-based Caisse de dépôt et placement du Québec is teaming up with London, U.K.-based sustainable investing firm Generation Investment Management LLP in a long-term investing partnership, the organizations announced Tuesday.
The partnership will invest US$3 billion in sustainable investments with a longer-term outlook, specifically investments with expected durations of between eight and 15 years. It will target businesses “with outstanding management teams and solid long-term growth prospects,” the firms say in a news release.
“For nearly 15 years, Generation has worked to prove the business case for long-term sustainable investing across both listed and private equity markets. This partnership affords us the opportunity to deploy longer term capital, which truly embodies the concept of sustainable investing. This is not only an important stride in fulfilling our own mission at Generation, but one that we hope will catalyse a more sustainable form of investing in the capital markets,” says David Blood, senior partner at Generation, in a statement.
“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,” adds Michael Sabia, Caisse CEO, in a statement.
Also Tuesday, the partnership announced that its first joint investment is in New Zealand-based fintech FNZ. The partnership is taking a majority stake in the firm, which works with banks, insurers, and asset managers to help improve client engagement and lower costs. Terms of the deal were not revealed.