National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Canadian Institutional Investor Makes $250M Investment in Avison Young
Caisse de dépôt et placement du Québec (CDPQ), one of Canada’s leading institutional fund managers, made a $250-million preferred equity investment to accelerate Avison Young’s strategic growth plan. The proceeds will be used to invest in acquisitions and the recruitment of key professionals, as Avison Young continues to grow its global footprint and service-line capabilities.
Avison Young’s Mark E. Rose told Connect Media the investment validates Avison Young’s performance. But it also serves as a key milestone for the firm.
“We are building a relationship with one of the biggest players in the world,” says Rose, noting that CDPQ is one of the largest private equity investors with nearly $300 billion in global assets. Among its numerous portfolio of companies are such brands as Ivanhoe Cambridge on the CRE side, and Pet Smart on the retail front.
“We are ecstatic that a group as successful as Caisse sees what we’ve been building and want to be there with us,” said Rose, who notes they expect to quickly initiate a steady flow of individuals, teams and companies into the Avison Young platform.
The structure in a preferred equity transaction also allows Avison Young to buy back shares from Tricor Pacific Capital Inc. (Parallel49 Equity) and preserve its unique position as a private, principal-managed and led organization. The principals of Avison Young will once again own 100% of the common shares of the company.
“We are a culture driven, not capital driven firm,” Rose says. Avison Young’s fundamental strategy since it started in 2008 was to be a disruptor within the CRE services sector, and Rose told Connect Media he expects to continue on that path. “We always felt when we got the opportunity to take out the capital that helped in our growth, and give liquidity to the founders who are retiring, we would,” said Rose, adding this amount of investment is expected to allow Avison Young to grow at an even faster pace and achieve a greater scale quicker.
*Pictured CDPQ’s Stéphane Etroy (left) and Avison Young’s Mark E. Rose
For comments, questions or concerns, please contact Dennis Kaiser
