The rise of institutional investors in TMT

Institutional investors are increasingly looking at TMT assets which, with their hundreds of billions of dollars under management, have significantly raised the level of competition.

Historically, pension funds, sovereign wealth and insurance firms have often joined consortia as minority or indirect investors, leaving the management of the newly acquired assets to specialist management teams, private equity firms or infrastructure funds (which are themselves funded by institutional investors).

However, difficult returns in public markets and the increased cost of management and performance fees have encouraged many of those investors to go after private assets directly via majority stakes or partnerships. While infrastructure in TMT remains institutional investors’ favoured targets - GIC, ADIA, the Canadian pension funds, just to mention a few - other asset classes are also increasingly garnering more interest.

TMT Finance exclusively reported that the Caisse de dépôt et placement du Québec (CDPQ) and Canada Pension Plan Investment Board (CPPIB) were looking at acquiring IP software firm CPA Global in 2017. French Insurance firm AXA recently bought Paris-based datacentre company Data4. Qatar Investment Authority invested in ecommerce firm Vente-Privée. Singaporean sovereign wealth fund GIC took at 16% stake in Irish telecom operator Eir in 2016. And the list is likely to grow longer by the end of 2018.

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Published on 18.10.2018
Published on 18.10.2018
Published on 18.10.2018
Published on 18.10.2018