Investment Management Corp. of Ontario, Toronto, made its first private markets investment, acquiring a minority stake in Corsair Components Inc., a personal computer and gaming peripherals provider, from Francisco Partners in a $525 million deal.
IMCO, which began investment operations on Monday, is investing in the company along with private equity fund EagleTree Partners IV, managed by EagleTree Capital, and the $16.8 billion pension plan of Honeywell International Inc., Morristown, Pa., according to a news release from Corsair.
Corsair management, including CEO Andy Paul, will hold a majority stake in the firm.
Details of the deal, including the size of the stakes held by IMCO and the other co-investors, were not disclosed.
IMCO, which manages C$60 billion ($47.8 billion) in assets, was created in July 2016 to manage assets for small provincial pension plans and universities. It also manages the assets of the C$29.4 billion Workplace Safety and Insurance Board and the Ontario Pension Board, which oversees the C$24.4 billion Ontario Public Service Pension Plan, Toronto.
"While OPB and WSIB are the first two plans to pool their assets under IMCO's management, over the next 18 months we will focus on preparing to offer our services to other broader public sector plans," said an emailed statement from IMCO. "To be successful we must demonstrate IMCO can offer better returns, for a lower cost, than other plans can currently earn on their own. Our investment in Corsair is an important first step in meeting this objective."