IMCO adds private direct lending to Global Credit portfolio with US$500M investment with Antares Capital LP
TORONTO (October 28, 2021) – The Investment Management Corporation of Ontario (“IMCO”) is investing US$500-million with Antares Capital LP (“Antares”), a leading provider of financing to mid-market private equity-backed companies in North America. IMCO's platform investment forms the foundation of the direct lending component of its Global Credit strategy and aims to build a diverse portfolio of sponsor-backed loans in the middle-market, focusing on U.S. and Canadian borrowers. The portfolio will be diversified across industry and sponsors and will target 75-100 issuers.
Antares is a private debt credit manager and a leading provider of innovative financing and investment solutions for PE-backed borrowers and investors. With US$42.9-billion of capital under management and administration, it has one of the industry's largest and longest-tenured portfolios of mid-market companies. IMCO selected Antares as its private debt manager following a competitive process.
“Private debt lending provides stable returns and aligns well with IMCO's tolerance for illiquidity and our long investing horizon,” said Jennifer Hartviksen, Managing Director, Global Credit, IMCO. “Antares has a 25-year track record investing across markets and industry cycles, and our new direct lending program will benefit from Antares' broad suite of lending capabilities.”
“We are very pleased to utilize our market leadership position and select access to high-quality private market investment opportunities to support IMCO in achieving their clients' risk-reward objectives,” said Vivek Mathew, Head of Asset Management and Funding, Antares Capital. “IMCO is a like-minded, purpose-driven institution and we're proud to have customized a solution allowing their clients to capitalize on the growth we drive within the middle market.”
IMCO's Global Credit portfolio invests across a range of public and private credit market segments including corporate bonds and loans, real estate and infrastructure debt, off-balance sheet financing loans, emerging markets debt, high yield bonds and leveraged loans to generate higher risk-adjusted returns than traditional fixed income, adding diversification benefits to a total portfolio for IMCO's public sector clients. The Global Credit program is differentiated by its broad approach to portfolio construction, making strategic allocations to liquid/illiquid securities, geographies and across the risk spectrum. Our experienced team has decades of diverse experience investing across credit segments, geographies and at all stages of the credit cycle. As of December 31, 2020, IMCO's Global Credit portfolio had $4.6 billion AUM. The portfolio is expected to grow to $8 billion or more by 2025.
The Investment Management Corporation of Ontario (IMCO) manages $79 billion of assets on behalf of its clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. It provides leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and Twitter @imcoinvest.
With $42.9 billion of capital under management and administration as of June 30, 2021, Antares is a private debt credit manager and a leading provider of financing and investment solutions for middle-market private equity-backed borrowers and investors. In the first half of 2021, Antares issued approximately $11 billion in financing commitments across more than 135 transactions. Since its founding in 1996, Antares has built one of the industry's largest and longest-tenured portfolios of middle market companies. Due to its steadfast support of this crucial sector of the economy, Antares has maintained the Refinitiv #1 bookrunner league table position for U.S. sponsored middle market deals since 2010. Through its Asset Management & Funding team, Antares offers investors the opportunity to invest in collateralized loan obligations, funds and separately managed accounts. Antares is committed to championing middle market growth throughout market cycles. Doing so allows its people, partners and communities to achieve their full potential. The company maintains offices in Atlanta, Chicago, Los Angeles, New York and Toronto. Visit Antares at www.antares.com or follow the company on LinkedIn at http://www.linkedin.com/company/antares-capital-lp. Antares Capital is a subsidiary of Antares Holdings LP, (collectively, “Antares”).