The Ontario Teachers’ Pension Plan and Australian superannuation fund AustralianSuper are investing up to US$1 billion each in the National Investment and Infrastructure Fund of India’s master fund.
The agreement includes US$250 million from each pension fund, as well as investment rights of up to US$750 million each for ongoing opportunities alongside the master fund.
In addition, the two parties will become shareholders in the NIIF’s investment management company, National Investment and Infrastructure Fund Ltd. With these new commitments, the NIIF master fund’s co-investment pool totals US$2.5 billion. It invests in India’s core infrastructure sectors, focusing on transportation, energy and urban infrastructure.
Read: India a hot destination for pension fund dollars
“NIIF’s investment strategy aligns with the long-term and partner-oriented investing approach we have successfully used in other regions,” said Dale Burgess, senior managing director of infrastructure and natural resources at the Ontario Teachers’, in a press release.
In another investment, alongside TPG Capital Asia and TPG Growth, the Ontario Teachers’ is acquiring up to a 35 per cent stake in Dream Cruises, one of three global cruise brands operated by Genting Hong Kong.
The 35 per cent stake is valued at about US$489 million, making Dream Cruises’ total equity value more than US$1.39 billion.
“The investment is a testament of Ontario Teachers’ positive view on longer-term growth in Asia and is part of our continued drive to expand our global footprint by strengthening our local presence in Asia,” said Ben Chan, regional managing director for Asia Pacific at the Ontario Teachers’. “It is an excellent example of our commitment to work alongside quality partners that are highly experienced in investing and operating in the region.”
The investors expect to purchase the stake in two tranches, guaranteeing payment for at least 24.5 per cent for US$342 million as of September 2019 and the second for the remainder to follow in December.
Read: Ontario Teachers’ posts 2.5% return for 2018 amid volatile investment environment