CDPQ Buys Stake in Avison Young
Avison Young will use some of the proceeds to buy out its current private equity partner Parallel49 Equity.
TORONTO–Institutional fund manager Caisse de dépôt et placement du Québec (CDPQ) has made a $250-million preferred equity investment in Avison Young.
Avison Young will use some of the proceeds to buy out its current private equity partner Parallel49 Equity (formerly known as Tricor Pacific Capital), as well as shares of some non-management founders and former principals of Avison Young. It will also use the proceeds to invest in acquisitions and to recruit more professionals.
CDPQ will be entitled to designate three members of Avison Young’s nine-member Board of Directors.
Terms of the transaction, which closed on Monday, were not disclosed.
Avison Young has grown from a base of 11 offices in Canada and has since expanded to 84 offices in North America and Europe in 10 years. This equity investment will allow the firm to continue that momentum, Mark E. Rose, chair and CEO of Avison Young, says in a prepared statement. “We look forward to a collaborative relationship with CDPQ and its large global network, and benefitting from the ability to share expertise, deal flow, market intelligence and resources,” he says.
Rose also noted that the transaction structure allows Avison Young to revert to a private, principal-managed and led organization. Under this transaction, the principals of Avison Young will once again own 100% of the common shares of the company.
Credit Suisse acted as Avison Young’s financial advisor in the transaction and DLA Piper LLP (US) and Stikeman Elliott LLP served as Avison Young’s legal advisors.