PSP Investments

PSP Investments, formally known as the Public Sector Pension Investment Board, stands as one of Canada’s largest and most influential pension investment managers. Established in 1999, its mandate is to manage the net contributions to the pension funds of the Public Service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force. With a long-term investment horizon, PSP Investments employs a highly diversified strategy across various asset classes, including public equities, fixed income, private equity, real estate, infrastructure, natural resources, and credit investments. This broad approach allows them to generate sustainable returns to help secure the financial future of its beneficiaries.

As of March 31, 2023, PSP Investments reported impressive net assets under management (AUM) totaling $243.7 billion, underscoring its significant financial capacity and global reach. A substantial portion of its portfolio is allocated to private equity, where the firm actively pursues direct investments, co-investments, and commitments to private equity funds. Their direct investment approach often involves partnering with leading private equity firms or other institutional investors on large-scale transactions. PSP's focus in private equity is typically on mature, stable companies with strong market positions, reflecting their preference for established businesses that can deliver consistent, long-term value.

Beyond traditional private equity, PSP Investments also features a dedicated Growth Equity team. This group specifically targets high-growth companies that have demonstrated proven business models and possess robust management teams, often with a strong emphasis on technology-enabled sectors. While not an early-stage venture capital investor, PSP's growth equity arm provides substantial capital for scaling and expansion, participating in later-stage funding rounds. Their investment philosophy is characterized by a patient, long-term view, aligning with the generational needs of the pension funds they manage. PSP has been involved in numerous high-profile deals, such as its participation in the acquisition of a significant stake in FNZ, a global wealth management platform, in a transaction valued at $1.7 billion in 2018, showcasing their capability for significant capital deployment. Their typical direct investment check sizes for growth equity or private equity generally range from tens of millions to hundreds of millions of dollars, with the capacity to deploy over a billion dollars for major strategic stakes in large enterprises.