The United States, a dynamic investment destination
Over the years, the group has developed significant partnerships and made major investments in the U.S., particularly in private equity, infrastructure, real estate and credit. Transactions in recent years include:
- A $307 million (USD 225 million) co-investment, alongside New Mountain Capital, in Grant Thornton LLP, one of the leading U.S. audit, assurance, tax and advisory services firms.
- Reinvestments in AES Indiana – an electricity provider to more than 500,000 customers – which enabled the company to replace coal-fired generation units with renewable energy and to optimize its transmission and distribution, allowing it to decarbonize both its operations and the energy it supplies.
- The development of a mixed-use project consisting of 1121 Symphony Square (offices) and The Waller (residential) in Austin. This new, high-performance, environmentally friendly complex in the heart of Austin’s Innovation District offers state-of-the-art workspaces and wellness-focused resident services.
- The purchase of a 30% stake in Vertical Bridge, the leading private owner and manager of telecommunications infrastructure in the United States. Vertical Bridge helped support the growth of working from home during the pandemic.
- Debt investment of more than $300 million (USD 220 million) in Integrity Marketing Group, an insurance and financial services distribution platform owned by Harvest Partners, to support their acquisition strategy.
According to Yana Watson Kakar, Managing Director of CDPQ New York and Head of Americas, these investments are a clear indication of the vitality and diversity the U.S. market offers, which continue to create attractive investment opportunities across all sectors.
Two symbiotic economies
“The figures speak for themselves: trade and direct investment between our two countries now exceed $2.2 trillion,” said Ms. Watson Kakar. “As the United States’ biggest trade partner, Canada is also the main export market for 35 American states.”
“Thanks to efficient and deep capital markets and a rigorous, transparent regulatory framework, the United States offers one of the best investment environments outside Canada,” she added.
CDPQ opened its New York office in 2006 and has developed in-depth knowledge of the market, which is enhanced by its relationship with renowned partners including Blackstone, KKR and Carlyle. CDPQ’s regional management for the Americas—excluding the Canadian market—is also based out of New York.
A reputation that matters
“Being recognized as a global leader in infrastructure is the kind of information that circulates very quickly in a market like the United States. This is a huge differentiating factor” – Yana Watson Kakar
“Despite fierce competition in the United States, CDPQ’s approach and experience in direct investment and through partnerships allow it to stand out from the crowd,” said Ms. Watson Kakar. Ranked as the world’s leading institutional investor in infrastructure in 2023 and 2024 by Infrastructure Investor magazine, CDPQ enjoys a “sterling reputation” in this area, she said.
“What really sets us apart today is our constructive capital philosophy, and the fact that we forge very good partnerships with partners who share our values,” she said. “It’s this combination that has enabled us to achieve outstanding results in the United States.”
Strategic sectors
In real estate, the United States accounts for almost half of the global portfolio –with flagship properties such as T3 Rino, an office building developed with Hines and located in the River North Art District (RiNo) of Denver.
Vice President, Asset Management, United States and Head of Ivanhoé Cambridge
“We firmly believe in the strength, resilience and dynamism of the U.S. economy. Our real estate assets –including offices, logistics facilities and residential properties –as well as our investments in alternative assets, are a testament to our confidence and interest in the U.S. market,” noted Michael Caracciolo, Vice President, Asset Management, United States and Head of Ivanhoé Cambridge’s New York office.
CDPQ also has a long history in the booming energy transition sector, which reflects its environmental priorities. Back in 2013, it made its first investment in Invenergy Renewables, the leading independent global developer, owner, and operator of renewable energy solutions in North America.
In particular, its support has enabled Invenergy to develop critical solar, wind, transmission and storage solutions, noted Michael Polsky, Invenergy Founder and CEO.
“The partnership with CDPQ has helped us expand our development portfolio to meet the rapidly increasing demand for clean energy”
– Michael Polsky, Invenergy Founder and CEO
Always attentive to Québec-based businesses, CDPQ leverages its U.S. network to help them grow. Earlier this year it facilitated a trip to New York by five Québec women entrepreneurs so that they could make influential contacts in their industries and gather business intelligence.
“Those were three very productive days. They enabled us to forge links that can be of real help to their companies, and also help to create a shared community,” concluded Ms. Watson Kakar, who is looking forward to repeating the initiative.
CDPQ in the United States
Advantages:
- Preferred trading partner of Canada: nearly $3.6 B in goods and services cross the border every day.
- With its 336 million inhabitants, a vigorous entrepreneurial culture and well-regulated markets, the world’s leading economy continues to offer one of the best investment environments in the world.
- Our anchor point is in New York, where we opened an office in 2006.
197 B
In assets, mainly in real estate, IT and telecommunications, finance, consumer goods, industry and transport
38%
Of CDPQ’s global portfolio