Jul 5, 2022

AIMCo’s Private Equity team generated a record performance in 2021

Peter Teti, Head of Private Equity and International had the opportunity to speak with Buyouts Insider, a North American private equity magazine. Teti discussed AIMCo’s Private Equity team’s record performance in 2021 and the future ambitions for the program.

AIMCo’s Private Equity team generated a strong performance in 2021. Last year, the team deployed $2.7 billion in the global market, a record amount. AIMCo invested in a series of high-profile deals such as Thoma Bravo’s US$3.2 billion acquisition of cybersecurity platform and Clayton Dubilier & Rice stake sale and single-asset process for vehicle glass repair brand Belron.

In addition to scrupulous investing, AIMCo earned a great private equity return in 2021. In April, it reported generating one-year new IRR of 65.9 percent and a four-year net IRR of 22.3 percent, well above the performance in 2020. This year’s strong success is owed to several factors such as major portfolio exits. For example, the sale of HGGC of insurance services provider Davis, for US$1.7 billion, and the sale alongside OMERS Private Equity of sustainability consultancy ERM for US$2.8 billion. AIMCo, CCMP Capital and MSD Partners were also part of the NYSE debut of pool equipment supplier Hayward. “It was a big win for us,” said Teti.

AIMCo’s private equity strategy has a 60/40 split. 60 percent fund investments and 40 percent direct and co-investments. It focuses on backing large and mid market buyout funds in North America and Europe and co-investing in deals with them and other partners. This year’s portfolio rose to $10 billion-plus. “The first and primary filter is performance across business cycles and over time,” Teti said. “We hyperfocus on that.”

AIMCo’s Private Equity Team had a fantastic performing year, the highlights included AIMCo commitments to Genstar Capitals 10th flagship buyout fund which closed on US$10.2 billion and Summit Partners 11th flagship growth equity fund, closed on US$8.3 billion. In the future AIMCo will deepen its presence in global markets, while reinforcing existing operations in Europe and eventually Asia. As for the Private Equity Team, Teti currently manages about 20 investment professionals in Edmonton, Toronto and London, and is expected to grow with new hires.