Jasmine Kilman of Connect CRE reports Hoffman & Associates, Madison Marquette Sell The Wharf to PSP Investments:

Hoffman & Associates and Madison Marquette have sold their stakes in The Wharf, a mile-long 3.5 million-square-foot megadevelopment waterfront neighborhood in Washington, D.C., to Public Sector Pension Investment Board (PSP Investments).

PSP Investments, which has been a financial equity partner in the development since 2014, will own The Wharf in its entirety. Hoffman & Associates and Madison Marquette developed the $3.6 billion riverfront neighborhood located along the Potomac River, just south of downtown D.C.

“Since 2006, we’ve led The Wharf’s transformation from vision to reality, creating a dynamic, world-class neighborhood that includes everything from concert venues and homes to restaurants, parks, piers, and unparalleled waterfront access,” said Monty Hoffman, Founder & Chairman of Hoffman & Associates. “We have full confidence in our partner to carry forward our shared vision for The Wharf as we continue expanding communities across the DMV and beyond.”

With this sale, The Wharf marks the successful completion of its evolution from a transformative development to a nearly fully leased neighborhood offering residential, office, retail, and public space. 

In an exclusive interview, Monty Hoffman (featured above) discusses the sale of the project conceived two decades ago. You can read that Washington Business Journal article here (subscription required).

You can also read a lot more about The Wharf here and see many pictures of this exclusive riverfront property.

 As stated above, PSP Investments, which has been a financial equity partner in the $3.6 billion development since 2014, will own The Wharf in its entirety. 

That's quite an impressive asset to own and I guess the developers are exiting the project right after many years of developing it.

In other recent news, Freschia Gonzales  of Benefits and Pensions Monitor reports PSP and partner exit as offshore wind company changes hands: 

Havfram, an offshore wind installation company established in 2021 by Sandbrook Capital and PSP Investments, is set to be acquired by global dredging and marine engineering group DEME. 

The transaction, valued at approximately €900m, is expected to close by the end of April, subject to customary closing conditions. 

Sandbrook Capital and PSP Investments formed Havfram to address growing demand for Wind Turbine Installation Vessels (WTIVs) among major energy companies.  

Since its founding, the company has developed into a key player in the offshore wind sector, with two state-of-the-art WTIVs under construction and a strong contract backlog to support some of the largest offshore wind projects. 

“We partnered with PSP Investments to build Havfram because we saw a unique market opportunity to provide the state-of-the-art vessels required to build today’s enormous offshore wind farms,” said Christopher Hunt, partner at Sandbrook Capital.  

He added that DEME will take over as the company enters its next phase. Hunt also noted that Havfram has grown significantly in recent years and generated financial returns for investors. 

Sandiren Curthan, managing director and global head of Infrastructure Investments at PSP Investments, said the investment demonstrates the firm's broader capabilities and its commitment to investing in essential assets within the renewables value chain.    

Goldman Sachs acted as financial advisor, while Thommessen served as legal advisor to Sandbrook Capital and PSP Investments. 

PSP investments issued this press release on this deal:

London, UK; Montreal, QC; Oslo, Norway — April 9, 2025 — Sandbrook Capital, a private investment firm focused on building leading climate infrastructure companies, and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors, today announced the signing of an agreement to sell Havfram, an international offshore wind infrastructure company, to DEME (Euronext: DEME), a global leader in offshore energy and marine engineering. 

Established in 2022 through a strategic partnership between Sandbrook Capital and PSP Investments, Havfram was created to provide critical offshore wind installation capacity to the world’s leading energy companies. Under their ownership, Havfram has evolved into a world-class operator of Wind Turbine Installation Vessels (WTIVs), with two state-of-the-art vessels currently under construction and a strong contract backlog to build some of the largest offshore wind farms. 

“We partnered with PSP Investments to build Havfram because we saw a unique market opportunity to provide the state-of-the-art vessels required to build today’s enormous offshore wind farms” said Christopher Hunt, Partner at Sandbrook Capital. “In just a few years, Havfram has become one of the most important players in the offshore wind industry. We are proud of what the team has achieved and the positive financial returns delivered to our investors.  DEME will be an outstanding steward of the company in its next phase of growth.” 

“Our investment in Havfram reflects our broader capabilities and commitment to invest in assets essential to the renewables value chain, while generating strong risk-adjusted returns,” said Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments. “We are proud to have partnered with Sandbrook Capital and with the Havfram team to build a fleet of next generation WTIVs.” 

“The support and long-term vision of Sandbrook Capital and PSP Investments have been instrumental in building Havfram into what it is today,” said Ingrid Due-Gundersen, CEO of Havfram. “We’re incredibly excited to join forces with DEME, a global leader with a shared mission to accelerate offshore wind deployment. Together, we will play a major role in enabling the energy transition around the world.”  

The transaction, valued at approximately € 900 million, is expected to close by the end of April 2025, subject to customary closing conditions. 

Goldman Sachs served as financial advisors and Thommessen served as legal advisor to Sandbrook Capital and PSP Investments. 

About Sandbrook Capital
Sandbrook Capital is a private investment firm dedicated to building the next generation of climate infrastructure companies. Founded by a team of seasoned investors and operators, Sandbrook partners with exceptional management teams to grow sustainable businesses that deliver attractive financial returns and meaningful climate benefits. For more information, visit www.sandbrook.com.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$264.9 billion of net assets under management as of 31 March 2024. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or follow us on LinkedIn.  

About Havfram
Havfram is a Norwegian offshore wind installation company providing critical services to the global renewable energy industry. With two newbuild WTIVs under construction and a robust backlog, Havfram is positioned as a leading player in enabling the deployment of next-generation offshore wind farms. For more information, visit www.havfram.com. 

I vaguely remember this deal but clearly PSP and Sandbrook Capital did a great job developing Havfram into a world class offshore wind installation company and are now selling it to DEME, a global leader in offshore energy and marine engineering. 

The transaction, valued at approximately € 900 million, is expected to close by the end of April 2025, subject to customary closing conditions.

Ingrid Due-Gundersen, CEO of Havfram states: “We’re incredibly excited to join forces with DEME, a global leader with a shared mission to accelerate offshore wind deployment. Together, we will play a major role in enabling the energy transition around the world.”  

I'd say this was a strategic win-win for all parties involved. 

In other related PSP news, David Casey, Editor in Chief of Routes, reports AviAlliance plans to invest £350M In AGS Airports overhaul:

AviAlliance plans to invest £350 million ($465 million) over the next five years to modernize AGS Airports, which includes Aberdeen, Glasgow and Southampton airports. 

The company also appointed Charles Hammond, former CEO of Forth Ports, as the new chairman of AGS.​

The investment marks the largest capital program since AGS was formed in 2014 and follows AviAlliance’s £1.53 billion acquisition of the airport group from Ferrovial and Macquarie in January. The funds will support terminal upgrades, airfield infrastructure improvements and energy efficiency initiatives across all three airports.​

Scotland's Glasgow Airport will undergo a transformation of its main terminal, expanding floor space to accommodate more airline gates and enhance retail and dining options. Aberdeen Airport, also in Scotland, will see airfield infrastructure enhancements, while Southampton Airport's terminal will be redeveloped.​

“This significant investment will not only enhance the fabric of our airports, it will enhance the role they currently play in facilitating trade and tourism and, importantly, in generating meaningful employment across the country,” AGS CEO Kam Jandu says.

Glasgow is the largest airport in the AGS portfolio, handling approximately 8 million passengers in 2024. Aberdeen followed with 2.3 million, while England's Southampton Airport served around 850,000 passengers during the year.

AviAlliance, a subsidiary of Canada’s PSP Investments, entered the UK airport sector for the first time with the AGS deal, part of a strategic pivot following its exit from Budapest Airport and amid ongoing challenges in Germany’s aviation market. The company maintains holdings in Düsseldorf and Hamburg airports in Germany, as well as Athens, Greece, and San Juan, Puerto Rico.

Soon after finalizing the acquisition, AviAlliance sold a 22% stake in AGS to U.S.-based Blackstone for £235 million, retaining a 78% majority share and full operational control. The deal provides AGS with a new financial partner while keeping AviAlliance as the lead on strategy and operations.

Despite the investment, AGS’ three airports face headwinds. Glasgow has struggled to keep pace with Scottish capital Edinburgh, now Scotland’s main international gateway. Aberdeen, long reliant on oil and gas traffic, is adjusting to a shifting energy landscape. Southampton, meanwhile, faces competition from nearby Bournemouth and Bristol airports.

However, AviAlliance stressed the long-term potential. “AviAlliance takes a long-term view across all the airports within our portfolio, and this investment will assist AGS in accelerating its plans for delivering a superior passenger experience and growing connectivity,” AviAlliance Managing Director Gerhard Schroeder says.

“We are looking forward to working with AGS’ regional and national partners over the coming years to realize the full and undoubted potential of Aberdeen, Glasgow and Southampton airports.”

Recall, back in January, PSP announced the completion of its acquisition of AGS Airports, the operator of Aberdeen, Glasgow and Southampton airports from Ferrovial and Macquarie for an enterprise value of £1.53 billion.

More recently, Blackstone announced that Blackstone’s infrastructure strategy for individual investors has agreed to acquire a minority stake of 22% in AGS Airports (“AGS”), a platform of high-quality freehold airports providing access to key UK markets, from AviAlliance for £235 million:

Blackstone’s investment, together with AviAlliance and PSP Investments, is intended to support the continued growth of the travel and tourism industries across the United Kingdom.

AviAlliance, one of the world’s leading airport investors and operators, will remain the majority shareholder in AGS with a 78% stake.

AGS handles over eleven million passengers annually and is the owner and operator of three critical UK airports: Glasgow and Aberdeen in Scotland and Southampton in England.

If Blackstone is getting an important minority stake, that's quite an endorsement of this deal.

What else? PSP took part in the C$7 billion equity investment into Rogers managed by Blackstone and also took part in the the restructuring of capital led by Temasek of  Ceva Animal Health (Ceva), the world's fifth-largest animal health company. See details of that here.

Lastly, on the organizational front, at the end of March, PSP announced a new CFO and CRO:

Montréal, Québec (March 27, 2025) – The Public Sector Pension Investment Board (PSP Investments) today announced the appointment of Caroline Vermette as Senior Vice President and Chief Financial Officer (CFO) of PSP Investments. PSP Investments also announced the appointment of Alexandre Roy as Senior Vice President and Chief Risk Officer.  

Caroline Vermette joins PSP Investments from National Bank of Canada, where she most recently served as Senior Vice President, Internal Audit, providing independent assurance to the Board and senior management on the effectiveness of the Bank’s risk management, governance, and internal controls. She brings over 20 years of experience in financial leadership roles, demonstrating a proven track record of strategic financial planning, risk management, and driving efficiency through technology and innovation. 

“The appointment of Caroline Vermette as CFO marks an exciting new chapter for PSP Investments", said Deborah K. Orida, President and Chief Executive Officer, PSP Investments. "Her wealth of experience in financial reporting, internal audit, and risk management, combined with her deep understanding of complex financial transactions and international accounting standards, will be instrumental in ensuring the continued financial strength and strategic direction of PSP Investments. Caroline will strengthen PSP Investments ability to navigate an increasingly complex global investment landscape and deliver on our mandate for our beneficiaries."

Alexandre Roy joined PSP Investments in 2007 and has long played a critical role in strengthening the organization's risk management function and portfolio construction process. Through progressively senior roles, culminating in his position as Senior Managing Director, Total Fund Management, where he developed and implemented the Total Fund approach. This approach treats all asset classes and investment activities as a cohesive unit and as such has optimized the investment process, enhanced portfolio performance, and improved risk management across the organization. Most recently, he also assumed interim responsibilities of the Chief Investment Office.  

“Alexandre’s exceptional talent and leadership has long been instrumental to PSP Investments in delivering value for our beneficiaries and advancing our strategic objectives. His appointment as Chief Risk Officer reflects his deep understanding of our business, his proven ability to develop and implement new approaches to strengthen our organization, and his unwavering commitment to safeguarding the integrity of our investment portfolio. I am delighted to welcome Alexandre to our Executive Committee and look forward to the valuable insights he will bring. I am confident that in this role, he will continue to strengthen our risk management framework and contribute to the long-term success of PSP Investments," added Ms. Orida. 

I've heard nothing but good things about Alexandre Roy and I'm sure Caroline Vermette is highly qualified and will be a great CFO. 

You can view all of PSP Investments' senior managers here including Arun Bajaj, the new Senior Vice President, Chief People and Corporate Development Officer.

Alright, I started off discussing The Wharf and morphed this into a PSP Investments' latest deals and organizational changes comment.

Below, a virtual tour of The Wharf. The Wharf is one of the most popular areas for visitors and tourists to check out during a trip. It's also one of the areas where I recommend picking a hotel. Let's take a stroll around the Wharf and see what there is to see, do, and eat when you visit.

Wendy Lee, Local 575 of the Ontario Public Service Employees Union (OPSEU/SEFPO) posted updates in the Healthcare of Ontario Pension Plan (HOOPP):

The Healthcare of Ontario Pension Plan (HOOPP) is one of the strongest defined benefit pension plans in Canada, helping Ontario’s healthcare workers build the foundation for a financially secure retirement since 1960. Serving over 475,000 members and 700 employers, they are committed to providing members with the lifetime pension members have earned and the peace of mind members deserve.

Annesley Wallace became President & Chief Executive Officer of HOOPP on April 1, 2025.  It’s exciting to see that a significant, high performing pension plan is now being led by a female executive.  The predominant membership of HOOPP contributors are female.

Prior to joining HOOPP Annesley was Executive Vice-President, Strategy and Corporate Development and President, Power and Energy Solutions at TC Energy. In her role, Annesley was responsible for leading and executing the development of TC Energy’s corporate strategy, corporate development activities and capital allocation process, as well as for all aspects of the Company’s power generation and unregulated natural gas storage businesses.

Before joining TC Energy in May 2023, Annesley served as Executive Vice-President and Global Head of Infrastructure at OMERS, overseeing a global team and portfolio of approximately C$34 billion in assets across sectors including energy, digital, transportation and government-regulated services. Previously, Annesley also spent time at SNC-Lavalin, focused on engineering, procurement, project controls and project management for their energy, infrastructure and power businesses.

Annesley holds a Bachelor of Science and Master of Science in Engineering from Queen’s University, and a Master of Business Administration from the Schulich School of Business, York University. Annesley is also a registered Professional Engineer in Ontario and a former recipient of Canada’s Top 40 Under 40.

On a more personal level, she grew up in Ontario.  She is also a mother of two twin boys – a working mother who understands the impact pensions has on all of us, for all of us.

During today’s discussions, Annesley stated her leadership belief is that “health care is a fundamental right that we must defend” and as such, she indicated that HOOPP is “uniquely positioned” to be “flexible and adaptable” in these uncertain economic times as HOOPP has “a strong foundation with significant expertise”.

The four key focal points of HOOPP moving forward are the following:

• Focus remains on long-term success to ensure pension security for members by maximizing the over value of HOOPP.
• Be well positioned to navigate a challenging geopolitical and economic landscape by increasing adaptability.
• Continue to prioritize that enable HOOPP to be both flexible and adaptive in less certain economic times.
• Maintain the belief that when Canadians have access to a secure retirement, all will benefit. There is an acknowledgement that our members’ pension dollars are a huge spending component of the economy.  Thereby pension incomes can lead to the creation of jobs.

HOOPP has not had to increase member contributions since 2004.  This is an important to highlight that there has been stable contributions for over 20 years.  HOOPP has also improved the online tool for survivors’ benefit plan.  The strength of HOOPP’s stance, is what a member accrues, it belongs to the member.  The two items that are revisited on an annual basis is the Cost of Living Adjustments (COLA) for pensioners.  For 2025, the rate is 3.4%.  The contribution rates may also change from year to year.

There are currently 478,879 members and 134,000 retired members.  The average annual pension is $32,000 for a total of $3,3 billion benefits being distributed to retired workers annually.  There were 5,965 members who started their monthly pensions in 2024.

HOOPP is a very well diversified portfolio where the intention “is not to outperform the market” but ensure that funds are maintained for ongoing pension pay outs, shared by Annesley.  The HOOPP pension reviews potential investments and enter the right risk(s) in a very calculate for the long-term view.  Based on its firm foundation, HOOPP is able to take advantage of good investment opportunities, thereby making the plan more adaptable to change.

For those that interested in speaking with someone about HOOPP for their workplace, please feel free to connect with Bobby Argiropoulos, Public Relations at 416-459-5384 or via email at bargiropoulos@hoopp.com.

On LinkedIn, HOOPP's new CEO Annesley Wallace posted this five days ago:

I note the following:

This week, I had the opportunity to speak with leaders from Ontario Public Service Employees Union (OPSEU/SEFPO)’s Hospital Professionals Division at its 2025 Convention, discussing HOOPP (Healthcare of Ontario Pension Plan)’s commitment to providing healthcare workers in Ontario a reliable, stable pension for life. 

HOOPP is proud to serve the 25,000 OPSEU/SEFPO members under the Hospital Professional Division, who provide critical public health support across 84 hospitals every day. Thank you for having me!

So what's the big deal? Annesley Wallace meeting with members of HOOPP who are part of the Ontario Public Service Employees Union.

To me it is a big deal because Annesley Wallace officially started as the new CEO at the beginning of the month (she was there before to get the lay of the land as Jeff Wendling prepared to retire) and one of her first big presentations is with plan members to inform and reassure them.

Take note, if you want to be a great leader of a pension plan, always remember whose money you're managing and show them the respect they deserve.

And actions speak louder than words.

OMERS CEO Blake Hutcheson who Annesley worked with in the past once told me the part of the job he loves the most is talking to members and I believe him.

Anyway, time to watch the Montreal Canadiens and hope they win tonight.

Below, a reminder from five years ago of how dedicated HOOPP's members are and why it's important to safeguard their pensions. It's eerie watching this video, can only imagine how HOOPP's members felt back then.

Also, CNBC's Steve Liesman, Raymond James’ Ed Mills, Nationwide Mutual’s Kathy Bostjancic, and Fundstrat’s Tom Lee join 'The Exchange' to discuss what investors know about the economy and the markets.

The Canadian Press reports CPP Investments sells portfolio of private equity fund interests:

TORONTO — The Canada Pension Plan Investment Board says it has sold a portfolio of 25 private equity fund interests in North American and European buyout funds for $1.2 billion in net proceeds.

The board says the buyers are Ares Management Private Equity Secondaries funds and CVC Secondary Partners, the secondaries business of CVC.

Ares is a global alternative investment manager, while CVC is a global private markets manager focused on private equity, secondaries, credit and infrastructure.

The portfolio sold included primary commitments and secondary purchases made by CPP Investments in funds over 10 years old.

Dushy Sivanithy, CPP Investment’s head of secondaries, says the deal was part of its active portfolio management.

CPP Investments’ net assets totalled $699.6 billion at Dec. 31, 2024. 

CPP Investments recently issued a press release on this transaction:

London, U.K. (April 17, 2025) – Canada Pension Plan Investment Board (CPP Investments) today announced it has completed the sale of a diversified portfolio of 25 limited partnership fund interests in North American and European buyout funds to Ares Management Private Equity Secondaries funds (Ares) and CVC Secondary Partners, the Secondaries business of CVC.

Ares is a leading global alternative investment manager offering primary and secondary investment solutions across asset classes with over US$525 billion of assets under management, and CVC is a leading global private markets manager focused on private equity, secondaries, credit and infrastructure with €200 billion of assets under management.

CPP Investments’ net proceeds from the transaction, after certain costs and adjustments, were approximately C$1.2 billion. The transaction completed on 31st March 2025.

“This transaction was undertaken as part of our active portfolio management activities. As a systematic buyer and seller in the secondaries market, we see this sale as an attractive opportunity to optimize the construction of our portfolio,” said Dushy Sivanithy, Managing Director & Head of Secondaries, CPP Investments. “Ongoing management of our private equity commitments continues to realize strong returns for the CPP Fund.”

The portfolio of interests represents various primary commitments and secondary purchases made by CPP Investments in funds over 10 years old.

CPP Investments’ net investments in private equity totalled C$151.2 billion at December 31, 2024. The portfolio is invested in a wide range of private equity assets globally, focusing on long-term value creation through commitments to funds, secondary markets and direct investments in private companies.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2024, the Fund totalled C$699.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

So what's this all about? Why is CPP Investments, one of the largest allocators in private equity, selling stakes in private equity funds?

Dushy Sivanithy, Managing Director & Head of Secondaries at CPP Investments (featured above) states the following:

“This transaction was undertaken as part of our active portfolio management activities. As a systematic buyer and seller in the secondaries market, we see this sale as an attractive opportunity to optimize the construction of our portfolio. Ongoing management of our private equity commitments continues to realize strong returns for the CPP Fund.” 

What does he mean by active portfolio management? These aren't liquid stocks which you can trade in and out of, these are illiquid stakes in private equity funds that invest in private companies.

True but this is where the burgeoning secondaries market in private equity comes into play.

Back in 2004 when I was helping Derek Murphy set up private equity as an asset class at PSP Investments, the secondaries market in private equity was nowhere near as large and liquid as it is nowadays.

And when you sold stakes back then, it was because you were desperate and sold at deep discounts (10-20%).

Fast forward to 2025, a huge investor like CPP Investments calls top private equity funds like Ares and CVC to unload some over $1 billion in fund stakes and this deal can get done in a few weeks and at a very reasonable discount (typically 5%).

But why is CPP Investments selling old fund stakes in private equity?

There are many reasons but my best guess is they are shoring up liquidity and diversifying vintage year risk.

In order to properly manage a huge C$151.2 billion private equity portfolio where funds make up 40% to 50%  and rest is co-investments, directs and secondaries, you really need to manage your liquidity and properly diversify your vintage year risk.

If you do not properly diversify vintage year risk, you can get killed on a bad year and good luck making up the shortfall.

Also worth noting that CPP Investments isn't the only large Canadian pension investment manager selling PE stakes.

Late last year, PSP and OTPP sold $1 billion plus in PE stakes.

I noted this when I wrote that comment:

Go back to read my comments on BCI's Jim Pittman on staying focused, liquid and agile in private equity and it selling $1 billion of PE holdings to Ardian as well as my comments on CDPQ's head of PE on vintage year diversification and managing liquidity and how it used secondaries market to address overallocation.

Jim Pittman, Martin Longchamps and the heads of private equity across Canada's large pension funds have been quietly selling underperfoming stakes at a small discount to free up monies to invest in better opportunities going forward.

The reason they are able to do this is because the secondaries market has matured and is widely used now to manage portfolio liquidity.

And it's been a tough couple of years in private equity and everyone is feeling the pinch.

These are tough time sin private equity, exits are challenging, rates remain stubbornly high, costs are going up, and so on and so on.

It's still a great asset class but now more than ever, you better get the approach right by investing with top strategic partners and co-investing alongside them to reduce fee drag and really lean into them to leverage your size to get the best terms.

Canada's large pension investment managers are cutting back on purely direct investments and doing exactly that.

There's not much of a choice, you either do that or risk severe underpeformance in one of the most important asset classes to capture long-term returns.

So, trust Dushy Sivanithy, he's a smart guy, has tons of great experience having worked at Rede Partners, CDC Group and Pantheon before joining CPP Investments.

Earlier this year, he was named one of Private Equity News' most influential figures in secondaries:

Very talented guy who is also working for a more inclusive and diverse private equity landscape.

Alright, let me end it there, just remember this, the secondaries market is now huge and a lot more liquid, and top PE firms like Ares and CVC are great partners to have to unload fund stakes at a reasonable discount when these large allocators are diversifying vintage year risk.

Below, Cari Lodge, head of secondaries at CF Private Equity joins the Private Equity podcasts to discuss the astronomical growth in the secondaries market. 

Great discussion, listen to her insights."Being in the secondaries business, we see a lot of funds and we see a lot of what goes wrong in the private equity market that makes people want to sell things. One of the most common mistakes PE firms make is holding on to assets too long. If you look at the average holding period in the private equity market, it's gone from 5.7 years to 6.7 years. The secondary market exists because people want liquidity and we see it all the time."

Also, private credit secondaries has the potential to surpass private equity in deal volume over the longer term as more secondaries investors pursue yield and diversification amid market volatility.

Over the past year, several billion-dollar-plus deals have emerged in the credit secondaries space, including Coller Capital's recent acquisition of a $1.6 billion portfolio from American National and TPG Angelo Gordon's $1.5 billion continuation fund. Firms like Coller, Pantheon, Apollo Global Management and Ares Management have also launched dedicated credit secondaries strategies..

In this episode, Michael Schad, head of secondaries at Coller Capital, and Gerald Cooper, global co-head of secondaries advisory at Campbell Lutyens, speak with Americas Correspondent Hannah Zhang about the evolution of the private credit secondaries market and where the next opportunities may emerge.

"Most of the asset managers are sitting on tens of billions of NAV. So it lends itself to a secondary opportunity that is inevitably going to continue to grow and be of scale," Cooper said in the podcast. "I think as we look five to 10 years down the road, we are hopeful that we are going to see more specialised pockets of capital come into the space."

This too is a fantastic discussion and I agree, the private credit secondaries market will eventually eclipse the private equity secondaries market and this market is evolving very quickly. 

Listen carefully to both podcasts. I can assure you CPP Investments is a huge investor in both markets.

Layan Odeh and Paula Sambo of Bloomberg News report Omers’ Eric Haley retires in latest change within private equity:

The head of buyouts at Ontario’s pension fund for local government workers, Eric Haley, will retire and leave the firm at the end of the year in the latest change to the plan’s private equity business.

Haley will continue to lead the North American buyout team until the end of 2025, Don Peat, spokesperson for the Ontario Municipal Employees Retirement System, said in an email. “We are deeply grateful to Eric for his commitment to delivering on the Omers pension promise and his significant contributions to our private equity business and team culture.”

Omers has been revamping its private equity unit under Ralph Berg, who became chief investment officer in 2023. Last year, the Toronto-based fund halted direct private equity investments in Europe and opted to shift its strategy by investing alongside partners and external managers. The pension also launched a global funds strategy within a new group called Private Capital.

The $27.5 billion (US$20 billion) private equity portfolio was split, with Michael Block leading the global funds strategy and Haley overseeing the North American buyout program, the firm said at the time. It’s unclear whether Omers will replace Haley.

Haley’s departure continues a period of employee change within Omers’ private equity business. In March, Alexander Fraser, a former partner of a Temasek-backed fund, joined as global head of its private equity arm. He succeeded Michael Graham, who retired in February. Jonathan Mussellwhite, who had led private equity in Europe since 2018, left a few months before that.

For decades, the so-called Maple Eight have built up their deal teams to take a leading role in some private equity transactions. Now, some of them want to lean more on partners, as higher borrowing costs choked deal activity and diminished the allure of controlling portfolio firms.

Last month, Ontario Teachers’ Pension Plan said it’s re-examining its buyout unit, aiming to work more with partners rather than owning large or controlling stakes in private businesses as it seeks to mitigate risk. And Caisse de Depot et Placement du Quebec said in February that it will scale back its direct investing and team up with third-party managers.

I'll keep my comments brief as it's Election Day in Canada and I want to see coverage as results start coming in.

I'm hoping for sweeping change coast-to-coast but the polls suggest another minority government is on its way (sigh!).

Speaking of sweeping change, OMERS is rejigging its private equity unit.

The change has accelerated since Ralph Berg took over as CIO in 2023.

Berg has recently refocused the investment programs and in Private Equity he decided fund investments was the best route for Europe and Asia and stuck to buyouts in North America with more co-investments:

Private equity is the final piece of the puzzle with investments dominated by the buyout program. In September last year, after analysing performance and deal flow, Berg decided to switch to fund investing in Asia and Europe and to focus on buyouts in North America.

“I came to the view based on data and performance we don’t have the scale to afford the quality origination and asset management required to efficiently do control deals in Asia or Europe,” he says. “We decided to focus on our buyout efforts in North America.” That group employs around 65 people across New York and Toronto.

The fund also recently formed a new external funds management group within private equity, called private capital headed by Michael Block. This is where the historical group of OMERS Ventures, which had some success in financing pharma in particular, and a legacy portfolio in green tech, will now be housed. Through this new group it will continue to invest in life sciences and venture capital and invest with external partners in funds and co-invest.

OMERS also recently hired Alexander Fraser, a former partner of a Temasek-backed 65 Equity Partners to run its private equity arm. 

Well, to be blunt the writing was on the wall for Eric Haley who was promoted in 2022 to head the North American direct buyout group. 

Clearly there is an important shift in strategy going on, less purely direct buyouts, more co-investments with large strategic partners.

It's going on all over, not just OMERS, and I wrote about it last week when I covered why Canadian pension funds are cutting back on pioneering PE investments.

In short, I don't care if you're OMERS, OTPP, CDPQ or whoever, you are not going to compete with the top private equity funds in the world so it makes more sense co-investing alongside them on larger transactions to reduce fee drag.

OMERS' CIO Ralph Berg hinted at this to the Financial Times when he said: “[we] evolved our investment strategy over the last couple of years to explore different models and use funds where it is complementary”. 

I suspect they'll be using more and more funds where it makes sense and start curtailing their purely direct deals, especially in Europe and Asia.

Even in North America, it's a challenging environment.

One thing is clear, however, Ralph Berg is running the show at OMERS when it comes to investments and he's very performance driven and expects results.

CEO Blake Hutcheson doesn't get involved in these investment decisions but he too expects results and wants to make sure all departments are producing what is expected of them. 

Alright, let me wrap it up there but before I forget a few items related to OMERS.

First, Anca Drexler, former Head of Total Portfolio Management there is now the new CIO of Building Ontario Fund:

I congratulate her and think she'll be a superb CIO at Building Ontario Fund.

And OMERS CFO & CSO Jonathan Simmons is back it again this year, walking to raise funds for MS research:  

Jonathan raised more than $500,000 last year in cumulative funds for his 25th anniversary and if you'd like to support him, please do so by clicking here.

I was diagnosed with MS back in June 1997 right in the middle of writing my Masters' thesis in Economics at McGill. 

Back then, I flew to New Jersey to meet Dr. Stuart Cook who wrote The Handbook of Multiple Sclerosis (my late aunt worked with him and arranged a meeting). 

At the time, there were only three drugs available to treat MS (Betaseron, Avonex and Rebif) and Dr. Cook convinced me to go on Avonex which lasted for eight years till I stopped using it because I saw no meaningful benefits.

Amazingly, the progress in research and new drugs over the last 28 years has been spectacular (especially for relapsing remitting MS, less so for progressive MS although there too there's progress). 

The good thing about MS is after many years, the disease stabilizes, there are a lot less or no inflammatory attacks but neurological deficits remain.

After almost 30 years, I can write my own handbook on MS but count myself lucky.

My biggest preoccupation these days is addressing my chronic SI joint pain which is debilitating and I am prepared to do radiofrequency nerve ablation which will cost me a pretty penny (there is no free healthcare in Canada, that's a myth).   

Anyways, I wish Jonathan all the best again this year, please feel free to donate here to help him raise his target funds.

Below, Blake Hutcheson, President and CEO of OMERS, recently addressed the Canadian Club Toronto for a discussion on today’s turbulent economic and political landscape.

Blake is a terrific speaker and I highly recommend you take the time to watch this.

Let me also wish him a happy belated birthday and wish him many more healthy years ahead.

I celebrated mine with my wife and 19-month toddler over the weekend but unlike Blake and my friends, I was jumping in and out of a playpen but did get to watch the Habs with some buddies last night eating pizza (too bad they lost).

Lisa Kailai Han and Sean Conlon of CNBC report S&P 500 closes higher for a fourth day in a row, notches 4% gain for the week:

The S&P 500 rose on Friday, adding to its strong gains for the week, as investors continue to navigate an evolving global trade landscape while major tech names got a boost.

The broad market benchmark ended 0.74% higher at 5,525.21, while the Nasdaq Composite added 1.26% to end at 17,282.94. The Dow Jones Industrial Average lagged, but managed to close 0.05%, or 20 points higher, at 40,113.50.

Alphabet rose 1.5% after the Google parent and “Magnificent Seven” name reported a beat on the top and the bottom lines for the first quarter. Tesla, meanwhile, popped 9.8%, while fellow megacap names Nvidia and Meta Platforms advanced 4.3% and 2.7%, respectively.

The major averages rose on the week, notching their second positive week out of three. The S&P 500 gained 4.6%, while the Nasdaq climbed 6.7%. The Dow has underperformed but still cinched a one-week advance of 2.5%. With these latest gains, Nasdaq is now slightly positive for the month, but the S&P 500 is down 1.5% month to date. The Dow has fallen 4.5% so far in April.

Stocks have been taken for a wild ride in recent weeks, as traders try to make sense of the severity of President Donald Trump’s tariffs first unveiled on April 2. Mixed messaging around trade has added to the volatility.

China said Thursday that there were no talks with the U.S. on a potential trade deal. This came after the U.S. appeared to soften its stance on trade relations with China.

On Friday, Time magazine published comments from Trump that said he would consider it a “total victory” if the U.S. has high tariffs of 20% to 50% on foreign countries a year from now. But his Tuesday comments published Friday also said the president expects announcements on many deals to be coming “over the next three to four weeks.”

Adding to the confusion, Trump told reporters from Air Force One that he would not drop tariffs on China unless “they give us something.”

Still, going forward, Jay Hatfield, founder and chief investment officer of InfraCap, is optimistic that the worst of the tariff-induced uncertainty is over.

“The confusion about whether there’s really talks going on with China or not took some steam out of the market,” he told CNBC in an interview. “Our view is that we’ve reached peak tariff tantrum and so it’s likely to be more positive than negative.”

Hatfield believes the key driver for markets next week will be earnings from big hyperscaler firms such as Microsoft and Amazon.

Amalya Dubrovsky , Brett LoGiurato and Ines Ferré of Yahoo Finance also report Tesla surges 9%, S&P 500 gains for 4th-straight day in longest win streak since January:

US stocks rose on Friday, led by Big Tech, as President Trump's latest comments on tariffs kept trade tensions in focus.

The Dow Jones Industrial Average rose slightly. But the S&P 500 gained 0.7%, closing out its longest winning run since January. The Nasdaq Composite gained nearly 1.3%.

Tech stocks led a four-day rally on the S&P 500 and Nasdaq. AI chip maker Nvidia (NVDA) rose nearly 4%. EV maker Tesla (TSLA) jumped nearly 10% amid optimism that entry into the Indian market is near, and as the US said it would ease rules around self-driving technology.

The S&P 500 gained more than 4% for the week as investors focused on Trump's generally optimistic tone on trade talks and Fed officials hinted at possible rate cuts as early as this summer.

On Friday afternoon, Trump told reporters he won't drop tariffs on China unless "they give us something" in return. He also said another tariff pause is unlikely.

Meanwhile, reports circulated that China may pause its 125% tariff on some US goods, boosting market sentiment. Trump has claimed progress in negotiations with China, but China denied the existence of negotiations and demanded that the US lift its tariffs.

In individual movers, Alphabet (GOOG, GOOGL) stock rose after the company beat on earnings and announced a dividend hike and a $70 billion stock buyback. Intel's (INTC) stock fell despite beating earnings estimates. T-Mobile (TMUS) and Skechers (SKX) tumbled too, with both companies flagging the early effects of the tariffs.

Next week investors will hear from software giant Microsoft (MSFT) and social media platform Meta (META) as they report earnings on Wednesday. Tech giant Apple (AAPL) and e-commerce platform Amazon (AMZN) will also report earnings on Thursday.

It was a strong week in markets led by mega cap tech shares and other hyper growth stocks:

 Are we past peak tariff tantrum? Most likely but with Trump, you never know.

One thing is for sure, the US economy is a lot more resilient than most analysts think and all this nonsense on the "end of American exceptionalism" and the "death of the US dollar" was way overblown.

In my opinion, the US dollar which has been hammered this year, especially after tariffs were announces, is due for a big bounce up:

As far as the Nasdaq, it bounced big this week but remains below its 10 and 50-week exponential moving average:

It was really semiconductor shares (SMH) which propelled tech stocks higher this week but there too, hard to read more than a bounce for now:

 

There are a lot of bounces from deeply oversold levels but it doesn't mean new uptrend has resumed.

Having said this, if economic data and earnings prove to be better than expected in Q2,  this might be a decent quarter in the market.

I'm more concerned about Q3 and Q4 when delayed effects of tariffs kick in.

Interestingly, Reuters reports a JPMorgan survey shows consensus over weak dollar, US stagflation: 

There is a much higher risk of stagflation than recession in the U.S. economy over the next year, while the asset class most expected to outperform in 2025 is cash, according to the results of a JPMorgan survey published on Friday.

The trade war started by the U.S. administration of Donald Trump is seen by the majority as the policy with the most negative impact on the world's largest economy.

Three in five respondents believe U.S. economic growth will stall and inflation will remain above the 2% Federal Reserve target, with one-in-five respondents expecting inflation above 3.5%.

There is also consensus on the weakness of the U.S. dollar, with a majority expecting the euro at or above $1.11 to end the year, at least an 8% decrease for the U.S. currency this year.

"Our meetings were noteworthy for the differences in views between US investors compared to global investors on the consequences and market implications" of the regime change in the United States, JPMorgan said.

Cash is expected to remain expensive as yields on the U.S. 10-year note are not seen declining much from current levels. Over half of respondents believe the benchmark yield will be at or above 4.25% by the end of 2025.

Almost half of the respondents expect Brent oil prices to stabilize not far from the current price of $66 per barrel, while 3 in 10 foresee prices dropping to or below $60.

At 13%, more investors bet that emerging market equities will outperform other asset classes than the 9% who think developed stocks will.

Fifty-seven percent of respondents expecting Wall Street stocks to be the asset class with the largest outflows this year.

ESG investing was out of favor with 30% committed to maintaining their strategies while 42% showed no interest.

JPMorgan's survey was conducted on April 1-24 and 495 investors responded, according to the bank.

Note when this survey was conducted and the only reason I'm sharing it is because it will likely turn out to be spectacularly wrong.

Lastly, my friend and trading mentor Fred Lecoq who now lives in beautiful France sent me a Wall Street Journal article from Jason Zweig on the mistakes you're making in the stock market -- without even knowing it:

If you’re young, you know stocks and bitcoin can lose money at lightning speed. Just think of March 2020 or 2022. But your experience also tells you they will bounce back even faster and go on to new highs.

If you’re a middle-aged bond investor, you lived through almost nothing but falling interest rates and bountiful returns from 1981 through early 2022. In an earlier generation, the stock-market crash of 1929 haunted many investors, who shunned stocks for decades after.

Peter Bernstein, a financial historian and investment strategist who died in 2009, liked to say that investors have memory banks: the market returns collectively earned by people of similar age. Experience shapes expectations.

The problem is that your memory bank can deceive you in dangerous ways. Your experience of the past is a reasonable guide to the future only if the future turns out to resemble the portion of the past that you’ve lived through. And it often doesn’t.

Given the markets’ wild oscillations amid the uncertainty over President Trump’s trade policy, it’s worth looking at a few investing beliefs that your memory bank might hold—and asking whether they’re still valid.

Growth crushes value

For most of the past decade-and-a-half, value stocks—companies with lower share prices relative to their earnings and assets—have limped along, far behind higher-priced growth stocks like Apple, Nvidia and Tesla.

So far this year, though, Warren Buffett’s Berkshire Hathaway, the standard-bearer for bargain-hunting in the stock market, has gained 17.3%, bolstered by its $330 billion in cash. The technology-laden Nasdaq Composite Index is down 10.9%.

No matter how much the chaos over trade policy upsets the global economy, “the underpinnings of value will still matter,” says Rob Arnott, chairman of investment firm Research Affiliates. 

Value stocks should be less vulnerable to the market turmoil than growth stocks. “History shows that during times of turbulence, value beats growth,” says Arnott.

And for most of the past century, cheaper stocks outperformed more glamorous growth stocks—not the other way around, as your memory bank might suggest. If most of your stock portfolio is in growth, consider adding some value stocks.

The U.S. is the only place to be

For most of the past two decades, international markets ate U.S. dust as the dollar strengthened and American technology companies boomed.

That was then, this is now. In 2025, the MSCI ACWI ex USA Index, which tracks markets outside the U.S., is beating the S&P 500 by more than 14 percentage points.

If you’re a younger investor, your memory bank can’t tell you that international markets excelled for much of the past half century. From 1971 through 1990, the MSCI EAFE index of developed international markets outperformed the S&P 500 by an average of 4.2 percentage points annually, according to T. Rowe Price. For part of that period, overseas investments benefited from the tailwind of a declining dollar, which makes earnings in other currencies more valuable to American investors.

Even after their recent run-up, international stocks are relatively cheap, trading at less than 16 times earnings over the past 12 months and under two times book value, or net worth; U.S. stocks are at roughly 24 times earnings and more than four times book value.

If the dollar continues to weaken, that will strengthen overseas stocks; even if it doesn’t, the U.S. isn’t the only game in town. There’s a whole planet out there.

Buy the dips, and time will bail you out

The 1994 book “Stocks for the Long Run,” by finance professor Jeremy Siegel of the University of Pennsylvania’s Wharton School, argued that there’s rarely been a period of at least 20 years when stocks didn’t beat bonds after inflation.

Recent research by Edward McQuarrie, a business professor emeritus at Santa Clara University, shows that isn’t true. After spending years meticulously correcting the historical record of U.S. asset returns back to 1793, McQuarrie found numerous 20-year periods in which bonds beat stocks after inflation, most recently over the two decades ended in 2012.

None of this means you shouldn’t buy stocks or hold them for the long term. It does mean stocks aren’t guaranteed or foreordained to beat bonds, even over long periods.

Their returns are a function of interest rates, inflation and how expensive stocks are relative to bonds. Right now, stocks are far from cheap. Temper your expectations and focus on saving more, in case stocks don’t earn more.

Cash is trash

Many investors can’t forget the period from 2009 through 2021, when cash often earned less than nothing after inflation. It couldn’t even play defense.

In 2025, however, cash is playing offense. With yields exceeding 4%, Treasury bills and money-market funds are clobbering stocks so far this year. They’re also outpacing the official measure of inflation.

Gold always glitters

If you’ve recently invested in gold, you know it shines during times of crisis. Your memory bank might not include gold’s historically dull performance after rapid peaks in its price. Gold didn’t surpass its January 1980 record closing price of $834 until nearly 28 years later and didn’t rise above its August 2011 closing high of $1,892 for almost nine years after that. Even at its recent price of about $3,300 it has yet to exceed its 1980 closing high after adjusting for inflation, according to Dow Jones Market Data. Gold is gleaming now, but it could tarnish when calm returns.

As you examine your beliefs, be sure to consult the longest-term data available, to capture periods you didn’t experience personally.

Testing the validity of what’s in your memory bank won’t prevent you from being guided by your investment experience. It might help prevent you from being its prisoner.

 Great insights but this time is different, or is it?

At this point it’s not a question if we are in a recession, it’s a question how severe it will be, and how long will it last. pic.twitter.com/OpnzGbUrPo

— Michael A. Arouet (@MichaelAArouet) April 24, 2025

US stocks are barely pricing in an economic slowdown, let alone a recession. pic.twitter.com/98q5K7C6VW

— Peter Berezin (@PeterBerezinBCA) April 25, 2025

Alright, have great weekend everyone.

Below, Atlanta Fed President Dennis Lockhart joins 'Squawk Box' to discuss the state of the economy, impact on the Fed's inflation fight, impact of policy uncertainty, rate path outlook, and more.

Next, Craig Fuller, FreightWaves CEO, joins 'The Exchange' to discuss what's going on with freight activity.

Third, on a more positive note, Ira Robbins, Valley Bank CEO, joins 'Power Lunch' to discuss consumer sentiment, lending and the regional banking environment.

Fourth, Nouriel Roubini, chair and CEO of Roubini Macro Associates, says US exceptionalism will remain despite bad trade and immigration policies. He speaks during an interview on "Bloomberg The Close."

Firth, Adam Parker, Trivariate Research CEO, joins 'Squawk on the Street' to discuss earnings, Trump's trade war and the choppy market.

Sixth, 3Fourteen Research's Warren Pies, JPMorgan’s Stephanie Aliaga and Truist’s Keith Lerner, join 'Closing Bell' to discuss Trump's trade wars, the technical levels of a market bottom and their overall outlook. Take the time to watch this discussion.

Lastly, Aswath Damodaran, NYU Stern school of business, joins 'Closing Bell' to discuss his valuation of the Mag 7. Damodaran isn't throwing in the towel on Mag-7 stocks and I think he's right.