Insurer Axa's private equity business has struck a deal for 11 funds owned by the private equity division of a major Canadian pension plan.
The portfolio of buyout funds is worth about US$850 million. They include North American and global funds currently owned by the Ontario Municipal Employees Retirement System.
"This is a large and significant transaction where we have excellent visibility on the assets, especially given that we are an existing investor in many of the funds," Benoit Verbrugghe, who heads Axa Private Equity's North American effort, said. "Having an international team with global reach gives us excellent perspective on pricing and quality, allowing us to be opportunistic on behalf of our investors and reinforce our strategy of buying excellent quality assets."
For its part, OMERS Private Equity CEO Paul Renaud said that the "transaction is consistent with OMERS' strategic shift towards direct investing."
The OMERS deal is the third private equity purchase for Axa PE in the last 13 months; in June of last year, it bought US$1.7 billion in assets from Citigroup and US$740 million in assets from Barclays.