Manager SelectionFebruary 16, 2024

CDPQ Extends CEO Charles Emond’s Term, Invests in Local Consultant, Japan Solar Plant

Emond, who became CEO in 2020, will remain until at least February 2029.

Reported by Michael Katz

The C$424 billion ($313 billion) Caisse de dépôt et placement du Québec has extended CEO Charles Emond’s mandate for five years through February 6, 2029. Emond was named CEO of the pension fund in February 2020.

The pension giant also announced that it recently invested C$125 million in Quebec-based consulting services firm Levio conseils Inc. and acquired an 80% stake in a Japanese solar power plant.

“For four years, under the leadership of Charles Emond, CDPQ has delivered solid results in an atypical environment, marked by extraordinary market conditions,” CDPQ Chairman Jean St-Gelais said in a release. “With his team, he has made key strategic changes in the CDPQ portfolio to generate results that meet the needs of our depositors and create added value. At the same time, CDPQ significantly increased its assets in Quebec and mobilized its teams on several structuring real estate and infrastructure projects.”

The pension fund announced its most recent investment in Quebec earlier this week with a C$125 million commitment to support Levio’s acquisition strategy. The company, founded in 2014, specializes in supporting institutional and commercial clients in the planning, managing and executing of large-scale digital transformation programs. It has approximately 2,000 advisers in 12 offices in Canada, the U.S., Morocco, India and France.

“With digital transformation at the center of the sustainability and productivity of organizations, this partnership fits perfectly with our investment priorities in addition to supporting the growth of the company,” said Kim Thomassin, CDPQ’s head of Quebec, in a release.

Levio intends to use CDPQ’s investment to accelerate its expansion, which includes seeking out a potential business combination. According to the announcement, the deal also provides the firm with “significant financial leverage.”

CDPQ also this week announced a co-investment deal with portfolio company Shizen Energy to buy an 80% stake in a solar power plant in Inuyama, Japan. The financial terms of the deal were not disclosed. The solar plant, which recently began operating, has a total power generation capacity of 31 megawatts, which, according to the companies, can power the equivalent of 7,850 homes.

According to the pension fund, the acquisition is the first under a 50 billion-yen ($333.4 million) co-investment framework announced in October 2022 by CDPQ and Shizen Energy; CDPQ invested 20 billion yen in 2023 to support the company’s growth.

“Japan plays a key role in the decarbonization of Asia,” said Emmanuel Jaclot, CDPQ’s head of infrastructure, in a release. “This transaction marks a new stage in our partnership, and we continue to explore other co-investment opportunities in the energy transition niche.”