Canada’s OMERS targets Australia

"We have identified Australia as a strategically significant market for us," said Jacques Demers, CEO of OMERS Strategic Investments at an investor gathering in Sydney, The Wall Street Journal reported. He added that the country is attractive because of its stable political environment and strong economic fundamentals.

OMERS has $55 billion under management and began boosting its private markets exposure nine years ago, targeting real estate, infrastructure and private equity. At the end of 2011, 58% of its assets were in the public markets with 42% in private assets, up from 82% public-18% private in 2003. The system's long-term goal is to have 47% of its capital in private markets.

OMERS Strategic Investments was established in 2009 to incubate investment platforms that don't fit under the mandates of existing divisions and allow the system to differentiate itself from conventional pension funds. In addition, the new division's objectives include establishing a global network of offices and raising capital domestically and internationally.

The likes of Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers' Pension Plan (OTPP) are already active direct investors in Asia. Demers said it was "still early days" for OMERS and it may well seek partners in asset deals. Resources, including infrastructure, is the primary target. Demers added that the system isn't ready to invest in areas such as property in Australia.

OMERS already has a dedicated infrastructure investment arm - Borealis Infrastructure - which is looking at deals in Asia. Last year, OMERS and a consortium of Japanese pension funds led by Mitsubishi Corporation announced a first close of $7.5 billion for the Global Strategic Investment Alliance, which has a final target of $20 billion. Borealis is responsible for originating and managing investments.

Australia is a popular destination for global infrastructure investors even as its resources boom begins to cool. In addition to the commodities story, a number of state governments want to sell off power companies, ports and road and rail infrastructure to offset declining tax revenues.

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• Topics
• Australasia
• Infrastructure
• Infrastructure
• North America
• LPs
• Ontario Municipal Employees Retirement Scheme
• LPs
• Canada
• Australia
• Infrastructure