News About Pensions

Canadian pension funds are making divergent bets: OMERS suffers a steep loss on a high-growth tech startup, while CDPQ-backed Velto Renewables secures €800M in refinancing for regulated solar assets.

Meanwhile, OMERS is also turning to primary care digital infrastructure, signaling a broader shift toward healthcare technology.

The takeaway: pension fund appetite for growth equity carries significant risk, but stable, regulated renewable assets and emerging healthcare digital infrastructure offer contrasting paths.

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

1. OMERS loses $138M as TouchBistro sold for $100M

OMERS, the Ontario pension giant, lost roughly $138 million after TouchBistro was sold to Constellation Software subsidiary Harris Computer for $100 million.

The pension fund had invested about $140 million in the restaurant software startup through its venture capital and growth equity arms.

The deal follows a December recapitalization that handed control to U.S. lender Francisco Partners, which converted $150 million in debt into preferred shares. That move wiped out prior equity holders, leaving OMERS with only $2 million from the sale.

Employees received nothing for their common shares. TouchBistro, once valued at $650 million in 2019, struggled against better-funded U.S. rival Toast and suffered from the pandemic and rising interest rates.

The sale price is less than half the $200 million valuation from December. OMERS had been a leading backer of Canadian tech startups, with earlier wins from Shopify and Wattpad.

This loss underscores the risks pension funds face when investing in high-growth, unprofitable startups.

Key facts:

- OMERS invested about $140 million in TouchBistro.

- TouchBistro sold for $100 million to Harris Computer.

- OMERS will receive about $2 million from the sale.

- TouchBistro's peak valuation was $650 million in 2019.

- Francisco Partners took control after a December recapitalization.

Why it matters: This loss is a stark reminder that even sophisticated pension funds like OMERS can suffer major write-downs on venture capital bets.

Canadian pension plans have increasingly turned to direct tech investments to boost returns, but the TouchBistro outcome shows how competition from well-capitalized U.S. rivals and macroeconomic shifts can destroy value.

The deal may prompt other pension funds to reassess their exposure to unprofitable growth companies, particularly in crowded software markets.

It also highlights the risk of debt-financed recapitalizations that dilute existing equity holders, a pattern that could reappear in other portfolio companies.

Theglobeandmail

2. CDPQ-backed Velto Renewables refinances 76 Spanish solar projects for €800M

Velto Renewables, owned by former CDPQ (La Caisse), has completed a €800 million (~$914 million) refinancing for 76 operational solar projects in Spain totaling 218 MWp.

The deal, backed by lenders including Export Development Canada, restructures debt under Spain's RECORE regulatory framework to support the company's 2026-2030 growth strategy.

The refinancing improves financial flexibility and simplifies Velto's corporate structure, building on its September 2025 acquisition of 163 MW of regulated solar capacity for an enterprise value of €1. 1 billion.

Key facts:

- Refinancing covers 76 operational solar projects in Spain (218 MWp).

- Deal valued at €800 million (~$914 million).

- Velto Renewables is backed by La Caisse, formerly CDPQ.

- Crédit Agricole, Export Development Canada, BBVA, and five other banks participated.

- Finance supports Velto's 2026-2030 'Operational Excellence as the foundation for Growth' strategy.

Why it matters: This deal shows how Canadian pension giant CDPQ is actively managing its renewable energy portfolio in Europe, using refinancing to unlock capital and streamline operations rather than pursuing new acquisitions.

The involvement of Export Development Canada signals continued Canadian institutional appetite for regulated European solar infrastructure.

With large-scale solar project funding up 61% year over year globally in Q1 2026, this move positions Velto to scale further in Spain while locking in favorable debt terms under the RECORE framework.

Mercomindia

3. OMERS joins Apollo and Kain in targeting primary care digital infrastructure

OMERS, the Canadian pension plan, is among institutional investors turning to primary care as a sector requiring greater digital infrastructure, according to a recent PE Hub report.

The article also notes that KKR has launched a new platform to leverage innovation in medical devices. No further details on deal size, specific assets, or timelines were provided in the available text.

The development signals growing pension fund appetite for healthcare technology investments, a trend that may accelerate as aging populations drive demand for digitized primary care services.

Key facts:

- OMERS is targeting primary care digital infrastructure.

- Apollo and Kain are also involved in the same sector.

- KKR has launched a new medical device innovation platform.

- The article did not disclose investment amounts or specific assets.

Why it matters: Canadian pension funds like OMERS are expanding into healthcare infrastructure, a sector that offers stable, long-term returns tied to demographic trends.

This move could shift capital away from traditional real estate and bonds, and it positions OMERS to benefit from the digitization of primary care.

Competitors such as CPPIB, CDPQ, and Ontario Teachers' may follow suit, increasing competition for high-quality healthcare assets. The KKR platform launch further underscores the broader industry pivot toward medical technology.

Pehub