Two days after it began managing the assets of its first two clients, the Investment Management Corp. of Ontario is taking part in a deal to acquire a U.S.-based computer hardware provider.
Along with investment firm EagleTree Capital and the Honeywell International Inc. pension plan, IMCO will acquire a majority stake in Corsair Components Inc., a provider of personal computer parts and gaming products.
The consortium of investors is buying the stake in the company from private equity firm Fransisco Partners Management and other shareholders for about $660 million.
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“Our investment in Corsair represents our first private markets transaction as IMCO,” said Bert Clark, chief executive officer, in an email to Benefits Canada. “We are excited about partnering with EagleTree and Andy Paul and his exceptional management team to support Corsair’s continued investments in technology and products that enhance the high-quality experience Corsair provides to gamers and enthusiasts globally.”
As part of the agreement, Corsair founder and chief executive officer Andy Paul will maintain his stake and role in the company. “We are very fortunate to have attracted such experienced investment partners,” he said in a news release.
Established in 2016 and modelled after organizations such as the Alberta Investment Management Corp. and the British Columbia Investment Management Corp., IMCO manages the assets of the Ontario Pension Board and the Workplace Safety & Insurance Board. It began managing the combined $60 billion in assets this week.
IMCO will focus on preparing to offer its services to other public sector plans in the next 18 months, said Clark. “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.”
*Editor’s note: Story updated July 27 to include comments from IMCO.