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OMERS sells AMS for $1.1B; backs record $139M defence round
Tuesday, Jun 30, 2026
Canadian pension funds OMERS and CPPIB are actively rotating capital: divesting mature assets (AMS for $1.
1B, Network Plus, Elephant Park London) while allocating to defence tech (Dominion Dynamics’ record $139M round) and life sciences (OMERS’ $350M debt for Zymeworks).
The moves signal a pivot from traditional infrastructure and outsourcing toward higher-growth sectors, though defence tech still faces government procurement hurdles.
Meanwhile, CPPIB’s consideration of selling ReNew’s solar manufacturing arm adds to the theme of portfolio rebalancing across geographies and sectors.
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, Ontario, Quebec, British Columbia, Alberta
1. CPPIB posts 1.8% quarterly return, assets hit $366.6 billion
The Canada Pension Plan Investment Board reported a 1. 8% net investment return for the quarter ended June 30, 2018, lifting net assets to C$366.
6 billion from C$356. 1 billion at the end of March.
The fund benefited from strong performance in non‑public assets such as infrastructure and real estate, which help reduce exposure to volatile equity markets and low‑yielding bonds.
CEO Mark Machin expressed confidence that the strategy will serve the fund through multiple economic cycles, though the board warned in May that double‑digit growth is unsustainable amid intensifying competition for assets.
Key facts:
- CPPIB delivered 1.8% net investment return in Q2 2018.
- Net assets rose to C$366.6 billion from C$356.1 billion.
- CEO Mark Machin cited diversification into infrastructure and real estate.
- CPPIB warned in May that double‑digit growth is not sustainable.
Why it matters: The quarter’s returns show Canada’s largest pension fund is leaning on private assets to maintain growth as public markets become more volatile and expensive.
The shift benefits the 20 million Canadian contributors by smoothing portfolio volatility, but the warning about unsustainable double‑digit returns signals that future gains may be more modest.
For peer funds like CDPQ, OMERS, and Ontario Teachers’, the pressure to find unique deals in a crowded market will only intensify, potentially driving more co‑investments and direct ownership of infrastructure and real estate.
2. OMERS Sells UK Infrastructure Firm Network Plus to Warburg Pincus
OMERS Private Equity has agreed to sell Network Plus, a UK utility and infrastructure services provider, to Warburg Pincus.
Founded in 2000 and headquartered in Worsley, Greater Manchester, Network Plus delivers maintenance, construction, and operational services across water, gas, power, and broader infrastructure sectors.
Financial terms were not disclosed, and the deal is subject to regulatory approval. Under OMERS ownership, Network Plus strengthened its operations and client relationships, with CEO Kevin Fowlie noting the partnership was instrumental in building momentum.
Warburg Pincus plans to support continued growth and keep the existing leadership and branding. DC Advisory served as exclusive financial adviser, running a competitive process that included lender education.
The agreement was reached in June 2026, according to DC Advisory.
Key facts:
- OMERS Private Equity sold Network Plus to Warburg Pincus.
- Network Plus is a UK utility infrastructure provider founded in 2000.
- Financial terms were not disclosed; deal subject to regulatory approval.
- DC Advisory acted as exclusive financial adviser on the transaction.
Why it matters: This exit allows OMERS to recycle capital from a mature investment into new opportunities, consistent with active portfolio management by Canadian pension funds.
For Warburg Pincus, the acquisition adds a leading UK infrastructure services platform with over 95 depots, supporting its European energy transition and business services strategy.
The deal signals continued cross-border infrastructure deal flow involving Canadian institutional investors, and the pending regulatory review will test UK competition appetite for private equity ownership in critical infrastructure.
3. CPP Investments sells Elephant Park London portfolio to Greystar for C$670M
The Canada Pension Plan Investment Board (CPP Investments) and Australian developer Lendlease have agreed to sell their 904-home Elephant Park residential portfolio in London to U.S.-based Greystar.
Under the deal, CPP Investments expects to receive C$670 million in net proceeds, while Lendlease will get A$260 million. The transaction is slated to close by the end of June 2026.
The sale follows a build-to-rent partnership launched in 2015 that delivered four buildings. This exit allows CPP Investments to recycle capital from a mature London rental asset, consistent with its active portfolio management strategy.
For Canadian pension funds, the move signals a potential shift toward divesting from international residential holdings as they adjust to changing market conditions.
Key facts:
- CPP Investments receives C$670 million in net proceeds from the sale.
- Portfolio includes 904 homes across four buildings built since 2015.
- Transaction expected to close by end of June 2026, subject to conditions.
- Buyer is U.S.-based Greystar, a global rental housing investor.
Why it matters: This sale shows CPP Investments actively managing its real estate portfolio by exiting a long-held London build-to-rent investment. The C$670 million proceeds can be redeployed into higher-return opportunities, potentially within Canada or other sectors.
For other Canadian pension funds, it highlights the importance of timing exits in overseas markets and the ongoing trend of recycling capital from mature assets into new priorities like infrastructure or domestic housing.
4. OMERS and BDC back record $139M defence tech fundraise
Dominion Dynamics, an Ottawa-based defence startup, closed a $139-million Series A round—the largest in Canadian defence history—with participation from OMERS, BDC, and Deloitte Ventures, led by Georgian Capital Partners.
CEO Eliot Pence said the investment signals that Canadian capital now recognizes the “criticality of defence” and technology's role.
He noted the startup still faces barriers: it lacks a contract with the Canadian Armed Forces and awaits promised procurement reforms from the new Defence Investment Agency, while needing faster feedback cycles to keep pace with threats.
Pence described the current environment as a “liminal state” for defence tech small and medium businesses, which face high regulatory, security, and fundraising hurdles, according to a June BDC report.
The investment marks a concrete shift by institutional pension funds like OMERS into a sector traditionally dominated by larger primes.
Key facts:
- Dominion Dynamics raised $139 million in the largest Canadian defence Series A.
- Investors include OMERS, BDC, Deloitte Ventures, and lead Georgian Capital Partners.
- CEO Eliot Pence said Canadian investors now understand defence’s criticality.
- The startup seeks a contract with the Canadian Armed Forces as top priority.
- A June BDC report cited high barriers for small defence firms in Canada.
Why it matters: This deal signals that major Canadian pension funds, historically cautious about defence, are now willing to bet on homegrown military tech. For OMERS, it diversifies into a high-growth sector tied to rising global security spending.
For defence startups, the capital influx could accelerate innovation—but only if Ottawa delivers promised procurement reforms. Without faster military contracting and testing, even well-funded startups risk falling behind international peers.
The outcome will test whether institutional capital and public policy can jointly strengthen Canada’s defence industrial base.
5. OMERS funds Zymeworks' US$929M Theravance buy with $350M debt
Vancouver-based Zymeworks is acquiring Theravance Biopharma for US$929 million in cash, entering the respiratory drug market. The deal includes financing from OMERS Life Sciences, which is providing US$350 million in debt at 8.
25% interest, to be repaid by 2036 from Yupelri royalties. OMERS has committed roughly US$5 billion to life sciences deals since 2016, marking its continued role as a major royalty monetization player rather than equity partner.
Zymeworks is using US$219 million of its own cash and Theravance’s US$360 million cash reserves to cover the remainder. The acquisition gives Zymeworks a 35% share of Yupelri’s US profits and potential milestone payments from GSK’s Trelegy drug.
The debt structure avoids shareholder dilution, a key point for Zymeworks as it shifts to a royalty-based strategy.
Key facts:
- Zymeworks pays US$929 million cash for Theravance Biopharma, or US$17 per share.
- OMERS Life Sciences provides US$350 million in debt financing at 8.25% interest.
- Yupelri, a COPD drug, generated over US$266 million in 2025 sales.
- Zymeworks gets 35% of Yupelri's net US profits after deal closes in 2025.
- OMERS has committed about US$5 billion to over 30 life sciences deals since 2016.
Why it matters: This transaction shows Canadian pension funds like OMERS acting as non-dilutive financiers for biotech roll-ups, competing directly with royalty funds. For Zymeworks, it enables entry into respiratory treatments without issuing equity.
For OMERS, it deepens its life sciences footprint with a structured debt play tied to commercial-stage drug royalties — a lower-risk alternative to venture bets.
Watch whether other Canadian pension funds follow OMERS into specialized pharmaceutical royalty financing.
6. OMERS sells portfolio company AMS to Korn Ferry for $1.1 billion
OMERS Private Equity, the private equity arm of the Canadian pension plan OMERS, has agreed to sell AMS, a global managed service provider and recruitment process outsourcing firm, to Korn Ferry for $1. 1 billion.
AMS operates in more than 120 countries and was held by OMERS since an earlier acquisition. The deal represents a significant liquidity event for the pension fund, allowing it to redeploy capital into other investments.
This transaction underscores the active role Canadian pension funds play in direct private equity investing, with OMERS realizing a return from a specialized workforce solutions asset.
The sale also reflects ongoing consolidation in the talent acquisition and workforce management industry.
Key facts:
- Korn Ferry acquires AMS from OMERS Private Equity for $1.1 billion.
- AMS is a London-based MSP and RPO provider with operations in over 120 countries.
- OMERS is a major Canadian defined benefit pension plan based in Ontario.
Why it matters: The sale provides OMERS with a substantial cash return, which can be redirected toward new infrastructure, real estate, or private equity opportunities.
For the broader Canadian pension fund sector, it demonstrates the viability of direct investment strategies and portfolio company exits.
The deal also signals continued M&A momentum in the staffing and workforce solutions market, with implications for competitors and buyers alike.
7. CPPIB-backed ReNew explores sale of solar manufacturing unit
ReNew Energy Global Plc, India’s second-largest green energy company and a portfolio firm of the Canada Pension Plan Investment Board (CPPIB), is reportedly weighing the sale of its solar manufacturing arm.
The move signals a potential strategic shift for the renewable energy developer as it reassesses its manufacturing footprint in a competitive global solar market.
While no deal terms or timeline have been disclosed, the consideration of a divestiture comes amid CPPIB's ongoing expansion in Indian infrastructure, including a recent $740 million investment in data centre operator CtrlS.
The outcome could reshape CPPIB's exposure to Indian clean energy manufacturing and influence how other Canadian pension funds manage their emerging-market renewable investments.
Key facts:
- CPPIB is an investor in ReNew Energy Global Plc.
- ReNew is India's second-largest green energy company by installed capacity.
- ReNew is reportedly considering selling its solar manufacturing arm.
- No deal value, buyer, or timeline has been confirmed.
Why it matters: The potential sale allows CPPIB to reassess its commitment to solar manufacturing in India, a sector facing margin pressure and policy shifts. A successful exit could free capital for other priorities, while a failure to sell might signal operational concerns.
This development also highlights how Canadian pension funds are actively reviewing their clean energy portfolios in fast-growing markets, balancing long-term returns with exposure to manufacturing volatility.