PSP Investments seeks Asia base in quest for deals

Canada’s Public Sector Pension Investment Board is establishing a base in Asia to pursue deals in private debt and equity, real estate and infrastructure, mirroring a strategy already deployed in London.

The office, to be located in either Hong Kong or Singapore, will complement a London hub that is to be expanded by as much as 50 per cent in spite of the looming prospect of Brexit, André Bourbonnais, chief executive of PSP Investments, said in an interview in Toronto.

“We’re looking very actively to have a presence either in Hong Kong or Singapore,” he said, adding that both the Asia base and the expansion of the London office to as many as 45 people will be in place by the end of the current fiscal year in March.

“London is and will remain a key financial market,” Bourbonnais said, noting that British politicians have recently soothed Brexit fears with reassurances that bankers and dealmakers from parts of the European Union will be allowed to stay if and when Britain exits the EU.

While some banks have pulled staff, it’s mostly been back and middle office employees, Bourbonnais said.

“People that are client-facing will remain there,” he said, adding that London continues to be a draw for top deal-making and financial talent.

“The talent pool that’s available is so much larger than (those willing to locate in) Canada, let alone Montreal,” Bourbonnais said.

Prior to taking his current job, Bourbonnais was global head of private investments at the much larger Canada Pension Plan Investment Board, a job he says influenced his vision for the public sector pension manager he now runs.

The CPP Fund has more than $300 billion in assets, and deals are sourced from CPPIB’s seven international business hubs in locations including London, New York, and Hong Kong.

In addition to the geographic coverage, Bourbonnais says he was also influenced by his former employer’s focus on the total portfolio, a strategy he introduced at PSP Investments.