TORONTO, ONTARIO, CANADA (November 16, 2016) – In a strategic move highlighting the growing appeal of private credit, Canada Pension Plan Investment Board (CPPIB) has announced the sale of a 16% equity stake in Antares Holdings (Antares) to a private investment fund managed by Northleaf Capital Partners. This transaction not only signifies a robust endorsement of Antares’ market position but also paves the way for a deeper collaboration between Northleaf Capital Partners and Antares, focusing on developing tailored investment solutions for the Canadian market.
The partnership between Northleaf Capital Partners, a prominent independent global private markets fund manager with US$9 billion in assets under management, and Antares, a leading financing provider in the middle-market private equity space, aims to create separately managed accounts and other innovative investment vehicles. These solutions are specifically designed to cater to the needs of Canadian asset managers, institutional investors, and private clients seeking exposure to private credit. Antares boasts an impressive track record, having facilitated over US$120 billion in financing in the last five years, establishing itself as a key player in financing middle-market private equity-backed transactions.
Ryan Selwood, Managing Director, Head of Direct Private Equity, CPPIB, emphasized the success of their investment in Antares, stating, “Antares has outperformed expectations since our acquisition by combining its market-leading origination platform with CPPIB’s access to capital at scale. This transaction will further broaden and diversify Antares’ investor base.” He reiterated CPPIB’s long-term commitment, “CPPIB is fully committed to its highly strategic platform investment in Antares and will remain its largest shareholder. We look forward to partnering with Northleaf Capital Partners to fund the continued expansion of Antares’ assets in order to meet demand from an expanding and increasingly global group of institutional clients.”
Since CPPIB’s acquisition of Antares in August 2015, significant investments have been made to fuel Antares’ growth trajectory. This support has translated into tangible results, with Antares experiencing year-over-year increases in volume, assets, and market share. The investment from Northleaf Capital Partners is poised to further accelerate this expansion.
David Brackett, Managing Partner and Co-CEO of Antares Capital, views this investment as a testament to Antares’ standing in the private credit market. “This important transaction reflects investor interest in Antares as a significant entry point into middle market private credit,” Brackett commented. “Northleaf Capital Partners’ investment in Antares, following their independent due diligence and evaluation of our firm, is a clear sign of confidence in our track record in the market and the successful execution of our transition to an independent business. Expanding our asset management business has been a strategic priority for Antares since we became a standalone business. We’re excited to team up with Northleaf Capital Partners and its investors as we grow our asset base and expand our separate account programs.”
The growth of Antares’ asset management division is strategically important, enabling the firm to offer enhanced certainty and reduced syndication risk to its sponsors and borrowers. This expansion also broadens Antares’ financing capabilities to encompass larger “bought deals,” providing a more comprehensive suite of financing options.
Stuart Waugh, Managing Partner of Northleaf Capital Partners, expressed enthusiasm about the partnership. “We are delighted to join CPPIB and Antares management as investors and strategic partners in Antares’ market-leading North American private credit platform,” said Waugh. “We see this relationship as a compelling opportunity to create value for Northleaf Capital Partners’ investors. Our organizations are ideal partners because we have strong and complementary investment relationships with private equity sponsors in the U.S. and Canada. Northleaf Capital Partners is also well-positioned to collaborate with Antares in developing separately managed accounts and other investment solutions designed specifically for Canadian asset managers, institutional investors and private clients.”
About CPPIB Credit Investments Inc.
CPPIB Credit Investments Inc., a subsidiary of CPPIB, manages CPPIB’s Principal Credit Investments (PCI) and Private Real Estate Debt groups. With a global presence spanning the Americas, Europe, and Asia, and a team of 39 professionals, CPPIB’s PCI group delivers diverse financing solutions across the capital structure. Their investment strategy includes direct primary and secondary investments in leveraged loans, high yield bonds, mezzanine financing, and intellectual property. Focusing on event-driven opportunities such as acquisitions and restructurings, PCI targets investments ranging from US$50 million to US$1 billion. Since 2009, the group has invested over C$30 billion in global credit markets.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization responsible for managing the funds of the Canada Pension Plan (CPP), ensuring long-term sustainability for 19 million contributors and beneficiaries. CPPIB diversifies its portfolio across public and private equities, real estate, infrastructure, and fixed income instruments. Headquartered in Toronto, CPPIB operates globally with offices in key financial hubs. As of September 30, 2016, the CPP Fund totaled C$300.5 billion.
About Northleaf Capital Partners
Northleaf Capital Partners is an independent, employee-owned global private markets fund manager specializing in private equity, infrastructure, and private credit. Managing US$9 billion for a diverse clientele including pension plans, endowments, financial institutions, and family offices, Northleaf Capital Partners has a strong history in global private markets, with over 200 active investments across 14 countries. With offices in Toronto, London, Chicago, and Menlo Park, Northleaf Capital Partners employs an 85-person global team.
About Antares
Antares is a leading provider of financing solutions for middle-market, private equity-backed transactions, with offices across North America. Facilitating over US$120 billion in financing in the past five years, Antares has received industry recognition, including being named Dealmakers of the Year and Lender of the Year. Antares Capital is a subsidiary of Antares Holdings LP.
Conclusion
The partnership between Northleaf Capital Partners and Antares marks a significant development in the private credit landscape, particularly for Canadian investors. By combining Northleaf Capital Partners’ investment expertise and network with Antares’ established platform and market leadership, this collaboration is set to unlock new opportunities and deliver sophisticated investment solutions tailored for the Canadian market. This strategic alliance underscores the continued growth and increasing sophistication of the private credit market and the pivotal role of firms like Northleaf Capital Partners in shaping its future.
