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CPPIB's $2.4B data centre bet leads Canada pension moves
Tuesday, Jul 7, 2026
Canadian pension funds are doubling down on alternative assets—CPPIB's $2. 4B data centre investment underscores AI-driven demand, while OMERS exits a $1.
1B stake and restructures leadership after weak private equity returns.
The contrast between CPPIB's aggressive expansion and OMERS's capital recycling and internal reorganization highlights divergent strategies amid a shared push for global private-market exposure.
Watch for further rotations as funds balance growth, partnerships, and portfolio performance.
Tracking: Pensions · Canada Pension Plan · CPPIB · CDPQ · PSP Investments · OMERS · British Columbia Investment Management Corporation · Ontario Teachers' Pension Plan · Alberta Investment Management Corporation · Healthcare of Ontario Pension Plan · Alberta Investment Management Corporation
Geography: Canada, Quebec, Ontario, British Columbia, Alberta
1. CPPIB invests $2.4B in EQT data centre push for AI infrastructure
The Canada Pension Plan Investment Board (CPPIB) has closed a US$1. 75 billion (C$2.
4 billion) investment alongside Swedish private equity firm EQT to expand EdgeConneX, a global data centre developer and operator. The deal targets surging demand for hyperscale, cloud, and AI-ready digital infrastructure.
Max Biagosch, CPPIB’s global head of real assets, said the investment increases exposure to a sector with “durable, long-term demand drivers.
” This marks CPPIB’s latest data centre bet, following recent commitments to AirTrunk in Asia Pacific, Ares Management’s Japan fund, Goodman’s Hong Kong partnership, and a $1 billion India partnership with CtrlS Datacenters.
The fund’s net assets rose 11% to C$793. 3 billion as of March 2026, with data centres becoming its largest Asia Pacific real assets theme.
Key facts:
- CPPIB invested US$1.75 billion (C$2.4 billion) in EQT’s EdgeConneX data centre platform.
- EdgeConneX has expanded capacity nearly 20-fold since EQT acquired it in 2020.
- The deal closed following customary approvals, CPPIB said July 3, 2026.
- CPPIB previously committed up to $1 billion to India’s CtrlS Datacenters in June 2026.
Why it matters: CPPIB’s growing data centre exposure reflects a strategic pivot toward AI and cloud infrastructure as long-term return drivers. For Canadian pension beneficiaries, this diversification seeks to offset risks from traditional real estate and fixed income.
The sheer scale—EdgeConneX plans 10+ gigawatts of new capacity—means CPPIB is betting on sustained demand from hyperscalers and enterprises.
Watch for competing Canadian funds (CDPQ, OMERS, Ontario Teachers’) to follow similar digital infrastructure plays, or double down on alternative assets to maintain returns.
2. Canadian pension funds pursue agriculture, defence, credit, and real estate deals
Several major Canadian pension plans announced new alternative investments last week. Ontario Teachers' Pension Plan is taking full ownership of Australian agribusiness Mitolo Family Farms, strengthening its agricultural platform.
The British Columbia Investment Management Corp. (BCI) and Ontario Municipal Employees' Retirement System (OMERS) are participating in a $139 million Series A round for defence firm Dominion Dynamics.
CPP Investments committed US$88 million to a structured credit partnership with Element Fleet Management Corp. , while also selling a 904-home build-to-rent portfolio in the UK to Greystar for capital recycling.
These moves reflect Canadian funds' continued appetite for private assets across geographies and sectors. Deals span agriculture, defence technology, auto-fleet asset-backed securities, and European residential real estate.
The transactions also illustrate a preference for partnerships (CPP with Blackstone) and direct ownership (Ontario Teachers), alongside active capital recycling to free up funds for new opportunities.
Key facts:
- Ontario Teachers' is acquiring full ownership of Australia's Mitolo Family Farms (undisclosed value).
- BCI and OMERS joined a $139 million Series A for defence firm Dominion Dynamics.
- CPP Investments commits US$88 million in a three-year partnership with Element Fleet Management Corp.
- CPP Investments sold a 904-home UK build-to-rent portfolio to Greystar via a €2.7 billion fund.
- Dominion Dynamics has raised $169 million since its June 2025 launch.
Why it matters: These deals show Canadian pension funds doubling down on illiquid, high-conviction alternative assets to generate long-term returns. Agriculture and defence tech add sector diversification beyond traditional infrastructure and real estate.
CPP's structured credit tie-up with Element Fleet provides exposure to US auto lease receivables, while its UK housing sale demonstrates active portfolio management.
The trend points to growing competition for private assets and increased reliance on partnerships. Watch for further co-investments in defence and agri-food, as well as more capital recycling in core real estate.
3. OMERS sells UK talent firm AMS to Korn Ferry for US$1.1bn
OMERS Private Equity has agreed to sell AMS, a UK-based recruitment process outsourcing firm, to Korn Ferry for roughly US$1. 1 billion.
The deal consists of about US$881 million in cash and US$255 million in Korn Ferry common stock. AMS generates around US$650 million in fee revenue and US$100 million in adjusted EBITDA annually.
OMERS head of private capital Michael Block said the firm expanded AMS's capabilities during its ownership and that Korn Ferry is a strong fit for the next phase.
The sale underscores OMERS' ability to exit a large private equity position after a period of growth under its ownership.
Key facts:
- Sale price is about US$1.1bn: US$881m cash plus US$255m in Korn Ferry stock.
- AMS generates ~US$650m fee revenue and US$100m adjusted EBITDA annually.
- AMS operates in over 120 countries, serving financial services, tech, healthcare and more.
- Deal expected to close in Korn Ferry's second fiscal quarter of 2027.
- OMERS' Michael Block cited expanded capabilities and client relationships during ownership.
Why it matters: This exit provides a concrete return for OMERS' private equity portfolio, demonstrating its strategy of building value in specialized service firms before selling to strategic buyers.
For the Canadian pension system, it shows how major public funds like OMERS execute large-scale divestitures, recycling capital into new investments.
The deal also reshapes the global talent solutions market, combining AMS's scale with Korn Ferry's consulting network—a shift competitors and clients will watch closely.
4. OMERS restructures investment leadership after CIO departure, expands private markets roles
Ontario Municipal Employees Retirement System (OMERS) has reorganized its investment leadership after CIO Ralph Berg left for Temasek. CEO Blake Hutcheson absorbed the CIO role, with five senior executives now reporting directly to him.
Michael Hill was elevated to global head of both infrastructure and private equity, and Scott McIntosh added oversight of global equities. Hutcheson said the changes simplify decision-making and reporting lines.
Alongside the restructuring, OMERS is advancing a capital rotation strategy, selling stakes in UK consultancy Alexander Mann Solutions, utility Network Plus, and Spanish energy logistics firm Exolum. The moves follow a 2025 net investment return of 6% ($8.
2B), which missed its internal benchmark partly due to weak private equity performance — the division posted a 2. 5% decline and first annual loss since 2020.
Key facts:
- CEO Blake Hutcheson took over CIO duties after Ralph Berg’s departure.
- Michael Hill now leads both infrastructure and private equity globally.
- OMERS sold its stake in Alexander Mann Solutions for ~$1.1 billion.
- Private equity returned -2.5% in 2025, its first loss since 2020.
- OMERS net assets grew to $145.2 billion as of Dec. 31, 2025.
Why it matters: The leadership overhaul concentrates investment authority in the CEO, diverging from Canada’s other large plans that maintain separate CIOs. This could speed decision-making but also concentrates risk.
The active capital rotation — selling mature assets while adding $10 billion in planned Canadian investments — signals a strategic pivot toward domestic exposure and away from underperforming private equity.
OMERS’ struggles in private markets may push other Canadian pension funds to reassess their own direct investment models and governance structures.
5. Smead Capital Management registers with Ontario Securities Commission, enters Canada
On July 2, 2026, Smead Capital Management (Canada) Ltd. received registration approval from the Ontario Securities Commission, marking the firm's first formal expansion into Canada.
The Phoenix-based value investing firm, which manages $5. 34 billion globally, is now authorized to operate as a Portfolio Manager in Ontario and Alberta and as an Investment Fund Manager in Ontario, Newfoundland & Labrador, and Québec.
CEO Cole Smead said Canada is home to the kind of long-term investors the firm wants to serve.
Smead Canada plans to bring investment products to family offices, institutional investors, and Canadian retail mutual fund platforms, pending further regulatory review.
The move signals growing interest from U.S. asset managers in the Canadian institutional market, where pension funds and other long-horizon investors are key potential clients.
Key facts:
- Registration effective July 2, 2026, from the Ontario Securities Commission.
- Smead Canada can operate as Portfolio Manager in Ontario and Alberta.
- Firm manages $5.34 billion as of May 31, 2026.
- CEO Cole Smead stated the firm aims to serve long-term Canadian investors.
Why it matters: Canadian pension funds such as CPPIB, CDPQ, and Ontario Teachers' are among the world's largest long-term institutional investors.
Smead's entry introduces a disciplined value-investing option that could compete for mandates currently held by other asset managers.
For smaller institutional investors and family offices, it adds a new partner specializing in low-turnover, concentrated equity strategies.
Watch for Smead's first product filings and whether other U.S. value firms follow suit into Canada's pension-heavy market.