AIMCo sets up shop in London

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Alberta's public pension fund manager has opened a new office in London to help broaden its investment focus.

Alberta Investment Management Corp. (AIMCo) has been expanding its holdings in European investments, and says a new office in London – staffed by two senior employees – will enhance oversight of current holdings in Europe and provide a platform to screen new investments.

The $70-billion pension manager, which invests money for 28 pension and government funds in Alberta, said it already has about $8-billion invested in the U.K. and Europe.

The London team will report to Robert Mah, who is AIMCO's executive vice-president of private investments.

"Europe is a strategic market for us, and we see great potential for future growth of our portfolios," Mr. Mah said in a statement Thursday.

AIMCo's primary focus has been on private equity investments in the region, including the partnering with OMERS Ventures on the $1.5-billion acquisition of multiplex cinema operator Vue Entertainment last June, as well as investing in a major project to redevelop the BBC Television Centre in London with Stanhope PLC and Mitsui Fudosan UK. AIMCo also participated with CVC European Equity Partners in the acquisition of Autobar Group Ltd., which is a supplier to the vending machine industry in Europe, and was a participant in the purchase of Tomkins PLC by Onex Corp. and the Canada Pension Plan Investment Board.

Several other major Canadian pension plans – including the Canada Pension Plan Investment Board, the Ontario Teachers' Pension Plan, the Ontario Municipal Employees Retirement System – already have offices in London to help oversee their European holdings.

AIMCo chief executive officer Leo de Bever said the fund has become a globally diversified investor with holdings in more than 50 countries, and says it is efficient to have staff closer to the fund's holdings in Europe.

"Our decision to establish a modest presence in London is driven by the efficiencies it affords us in our quest to deliver the best risk-adjusted rate of return on behalf of our clients," Mr. de Bever said.