Joel Bowey of Connect CRE reports PSP sells Sunrise Senior Living in a US$1 billion deal:

Canada’s PSP Investments is exiting one of North America’s largest senior-housing platforms, agreeing to sell Sunrise Senior Living to BDT & MSD Partners in a transaction valued at more than US$1B, according to The Wall Street Journal.

The deal shifts control of an operator with more than 230 communities and 22,000 residents across Canada and the U.S., along with a development pipeline of more than 50 communities carrying an expected development cost of about US$7.5B.

Sunrise has a meaningful Canadian footprint, listing 17 communities across three provinces: nine in Ontario, five in British Columbia and three in Quebec. Its Canadian network includes properties across Greater Toronto, Ottawa, Vancouver, North Vancouver, Victoria and Greater Montreal.

PSP first invested in Sunrise in 2014 and became its sole owner in 2023. The Canadian pension investor, which manages $320.6B in net assets, said the sale reflects its strategy of recycling capital after growing the business.

“This transaction reflects our portfolio rotation strategy, recycling capital from a successfully executed investment into new opportunities,” said Simon Marc, PSP’s senior vice-president and global head of private equity and real estate investments.

Sunrise CEO Jack Callison said BDT & MSD’s real estate, hospitality and development experience will “help accelerate Sunrise’s next phase of growth.”

BDT & MSD manages or has invested in about US$20B of real estate and has backed major operating platforms including Greystar.

Sunrise’s senior leadership will remain in place and invest alongside BDT & MSD. The transaction is expected to close in 2027, subject to regulatory approvals. 

On Wednesday, Sunrise Senior Living put out a press release announcing a majority investment from BDT&MSD in a new partnership with Sunrise Senior leadership to acquire the organization from PSP Investments:

MCLEAN, Va. (October 6, 2026) — Sunrise Senior Living (“Sunrise” or the “Company”) today announced that funds affiliated with BDT & MSD Partners (“BDT & MSD”), a merchant bank and investment partner to leading businesses and management teams, have entered into a definitive agreement to acquire Sunrise from the Public Sector Pension Investment Board (“PSP Investments”), in a new partnership with Sunrise’s senior leadership team, led by Chief Executive Officer Jack R. Callison, Jr.

For more than 45 years, Sunrise has helped pioneer modern senior living and built a reputation for quality, innovation and exceptional resident experience. Today, the Company operates more than 230 communities across the United States and Canada, serving more than 22,000 residents. Its platform includes a third-party management business, an active joint venture investment platform and a significant development pipeline of more than 50 new communities with expected development cost of approximately $7.5 billion.

This new partnership comes at a time when generational demographic shifts are driving growing demand for high-quality senior living. With its experienced leadership team, trusted brand, specialized operating capabilities and robust development platform, Sunrise is well positioned to meet this growing need through its differentiated, service-oriented approach. 

“Sunrise is guided by a singular purpose: championing quality of life for older adults by creating environments that support longer, healthier, and happier lives,” said Jack R. Callison, Jr., Chief Executive Officer of Sunrise Senior Living. “We thank PSP Investments for its support during a period of strong growth and evolution for Sunrise. We are excited to build on that progress with BDT & MSD as our majority investor, whose long-term approach and deep experience across hospitality, development, and real estate operations will complement our team’s expertise and help accelerate Sunrise’s next phase of growth. They share our values and our commitment to the residents and families we serve. Together we will continue to invest in our people, our culture, and the resident experience as we bring Sunrise’s approach to lifestyle, wellness, hospitality and care to more families.” 

BDT & MSD brings decades of experience investing in and partnering with leading real estate operating businesses including Greystar, Speed Bay, and Auberge Collection. The firm also owns and operates assets including Four Seasons Hualalai, The Boca Raton, and Four Seasons Jackson Hole, and has developed distinctive hospitality and residential properties including Naples Beach Club and soon-to-open Knox Street in Dallas. BDT & MSD’s deep experience investing in specialized operating platforms, combined with its hospitality and residential expertise and long-term partnership-oriented approach, brings a differentiated perspective to Sunrise, where hospitality, customer care, brand, and real estate intersect. 

“Sunrise is a category-leading business with an exceptional leadership team, trusted brand, and proven operating platform,” said Coburn Packard, Head of Real Estate Equity at BDT & MSD Partners. “We have a longstanding relationship with Jack and his team and tremendous respect for the culture and organization they have built. The need for high-quality senior living is growing, and we believe Sunrise has the leadership, reputation, and platform to meet it. We look forward to working alongside the Sunrise team and building on the Company’s legacy for many years to come.” 

PSP Investments first invested in Sunrise in 2014 and became its sole owner in 2023, a transition that gave the Company the flexibility to pursue and realize new growth opportunities and partnerships. 

“Sunrise is a clear example of our approach to real estate investing: executing a disciplined business plan, backing an exceptional management team, positioning the Company for continued success and crystallizing the value we've built for the contributors and beneficiaries we serve,” said Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP Investments. “This transaction reflects our portfolio rotation strategy, recycling capital from a successfully executed investment into new opportunities.” 

Sunrise's senior leadership team will remain in place following the transaction and continue to manage its communities, investing significant personal capital alongside BDT & MSD’s majority investment. 

The transaction is expected to close in 2027, subject to customary regulatory approvals. 

J.P. Morgan Securities LLC and Jones Lang LaSalle Securities, LLC are serving as advisors to PSP Investments on the transaction.

 About Sunrise Senior Living

Founded in 1981, Sunrise Senior Living is credited with establishing the modern era of senior living. Guided by its mission of championing quality of life for all seniors, Sunrise delivers highly personalized experiences that seamlessly integrate lifestyle, wellness, hospitality and high-quality care to meet each resident’s needs and preferences.

Today, Sunrise is a leading operator, owner and developer of private-pay luxury and premium senior living communities for older adults. Through its integrated operating platform, Sunrise provides independent living, assisted living, memory care and other specialized services designed to support seniors throughout their aging journey. 

About BDT & MSD Partners

BDT & MSD Partners is a merchant bank serving founders, business owners, and long-term strategic investors. Formed in 2023 through the combination of BDT & Company and MSD Partners, the firm invests across private capital, private credit, and real estate, with a highly differentiated sourcing model rooted in longstanding engagement with founders, family business owners, and closely held companies.

Through its affiliated investment adviser, BDT & MSD has invested in or manages approximately $20 billion of real estate across a fully integrated platform. The firm’s real estate platform invests across credit and equity, including real estate assets and operating companies, and works with owners and operators to create enduring value through aligned capital and a long-term investment approach. 

About PSP Investments

The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$320.6 billion of net assets under management as of March 31, 2026. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or LinkedIn. 

Alright, big real estate news at PSP this week, let me begin with this deal. 

First, for those of you who are not aware, BDT & MSD Partners is an American merchant bank formed in January 2023 through the merger of Byron Trott's BDT & Company and MSD Partners, an investment firm originally founded to manage the wealth of Dell Technologies founder Michael Dell.

Dell's family office is now called DFO Management. He does not own BDT & MSD but remains a major investor and chairs its advisory board.

All this to say, the people managing BDT & MSD Partners are exceptionally bright and they saw an opportunity here to own a quality asset like Sunrise Senior Living, bid for it, and acquired it from PSP Investments for US$1 billion.

I note what Coburn Packard, Head of Real Estate Equity at BDT & MSD Partners (featured at the top of this post) said:

“Sunrise is a category-leading business with an exceptional leadership team, trusted brand, and proven operating platform. We have a longstanding relationship with Jack and his team and tremendous respect for the culture and organization they have built. The need for high-quality senior living is growing, and we believe Sunrise has the leadership, reputation, and platform to meet it. We look forward to working alongside the Sunrise team and building on the Company’s legacy for many years to come.” 

As for PSP, it is selling a quality asset that it owned for years to a top-notch firm that can take it to its next growth level.

I note what Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP said in the press release:

“Sunrise is a clear example of our approach to real estate investing: executing a disciplined business plan, backing an exceptional management team, positioning the Company for continued success and crystallizing the value we've built for the contributors and beneficiaries we serve. This transaction reflects our portfolio rotation strategy, recycling capital from a successfully executed investment into new opportunities.”  

They basically got a very attractive offer for this asset, sold it and will deploy funds in new real estate opportunities.

Alright, it's Canadian Thanksgiving weekend, let me wrap this up with another real estate announcement from PSP. Tishman Speyer & The Cooper Union joined PSP to finalize a ground lease agreement and revitalization plan for the Chrysler Building:

Tishman Speyer, joined by PSP Investments and Other Institutional Partners, to Restore and Transform New York City’s Most Beloved Architectural Icon into a World-Class Boutique Office Environment NEW YORK (October 7, 2026) – Tishman Speyer and The Cooper Union for the Advancement of Science and Art today announced they have finalized a ground lease agreement for the Chrysler Building, a New York City icon and one of the most recognizable buildings in the world.

As the holder of a 150-year ground lease, which includes an investment of $235 million and ground lease payments to Cooper Union, Tishman Speyer will restore the landmark 77-story Grand Central office tower located at 405 Lexington Avenue. Tishman Speyer is joined in the transaction by multiple global institutional investors with the Public Sector Pension Investment Board (PSP Investments) as a lead investor.  

“We are pursuing an ambitious plan for the Chrysler Building at a historically strong moment for the Manhattan office market,” said Tishman Speyer CEO Rob Speyer. “We are thrilled to lead this beloved building’s next chapter. Just as we have done through new developments like The Spiral and our continuous reinvention of Rockefeller Center, we will create an environment that will make our customers proud and excited to work here every day.”   

The Cooper Union – a distinguished, private college founded by inventor, industrialist and philanthropist Peter Cooper in 1859 – has owned the land on which the Chrysler Building was built since it was granted to the institution by Cooper’s children in 1902. The land is intended to serve as a permanent source of financial support for the school’s mission. The long-term ground lease to Tishman Speyer comes as the college is in the midst of a bold plan to restore full-tuition scholarships for all undergraduates.   

“The significance of this agreement is ultimately about what it makes possible for generations of Cooper Union students,” said Steven W. McLaughlin, president of The Cooper Union. “For more than a century, the Chrysler Building has helped sustain Peter Cooper’s vision of opening access to education by removing financial barriers. We have a responsibility to be caretakers of that promise, to build upon it, and to leave Cooper stronger for those who come after us. This agreement is part of an integrated financial plan that gives us the framework to confidently pursue that goal.”  

“This was a singular opportunity to identify the best partner for the long-term stewardship of an extraordinary New York City landmark and for The Cooper Union as we work to advance and sustain full-tuition scholarships for all undergraduates,” said Cooper Union Vice President of Finance & Administration John Ruth. “Our leadership team and board of trustees, informed by expert advisors, conducted a deliberate, strategic, and thorough process, and there was great interest in the property as evidenced by the competitive proposals we reviewed and considered. Tishman Speyer emerged as the clear leader. We are confident that the Tishman Speyer team is the right team and understands the significance of this ground lease to the city and to the mission of The Cooper Union.”  

The Cooper Union was advised in this matter by Steve Klein, partner, Gibson Dunn and David Heller, vice chairman, Capital Markets Group, Savills North America.   

Tishman Speyer will undertake an extensive building improvement and hospitality program, which will breathe new life into the 1.3 million-square-foot tower. The investment aims to reposition the Chrysler Building as Manhattan's most distinctive new boutique office building, pairing one of the world's most iconic addresses with a workplace experience designed for today's customers. Tishman Speyer and its partners will deploy 100 percent equity to finance the ground lease and its redevelopment plan.   

As a long-term investor in real estate, PSP Investments is partnering with Tishman Speyer and other institutional investors to support the repositioning of one of New York City's most iconic office buildings. 

“This transaction reflects our deliberate investment strategy in prime office: acquiring high-quality assets in the strongest locations and executing a clear business plan alongside a proven global partner," said Simon Marc, Senior Vice President and Global Head of Private Equity and Real Estate Investments at PSP Investments. "The Chrysler Building is one of the world's most renowned landmarks, directly connected to Grand Central, and we are proud to be part of its transformation.”  

Today, the Grand Central submarket has one of the lowest office availability rates in Manhattan. Construction of new office supply in the neighborhood has been virtually nonexistent for decades. With premier towers at or near full occupancy and limited new supply in the pipeline, the Chrysler Building enters a market with few alternatives for companies seeking a high-quality, amenity-filled environment directly above Grand Central Terminal.  

Tishman Speyer will reserve the Chrysler Building’s 61st floor – renowned for its massive eagle gargoyles modeled after the hood ornament on the 1929 Plymouth – for an incomparable indoor-outdoor amenity program. The floor will feature an upscale lounge with outdoor access boasting spectacular views, premium food and beverage offerings and gathering space. A second amenity program, featuring fitness, wellness and meeting spaces, will be situated within the Chrysler Building’s underground arcade. 

To create a distinct competitive advantage, Tishman Speyer will prebuild 75 percent of the Chrysler Building’s current and upcoming vacancy with thoughtfully designed, ready-to-occupy suites. The prebuild approach, which Tishman Speyer successfully applied to its neighboring 6 Grand Central tower, allows for customers – particularly smaller users – to move in quickly and demonstrate to the market what it will be like to work at the Chrysler Building, which was built for the future and will once again become a vibrant, market-leading workspace.  

The transformation will also include restoration of the building’s façade and polishing and renewal of its distinctive crown. Within the building, Tishman Speyer will modernize the mechanical, elevator, electrical, and air handling systems, and optimize the cooling towers for energy efficiency.    

Originally built to house the Chrysler Corporation, the William Van Alen-designed building features decorative elements inspired by automobile parts and once held a car showroom in the lobby. The Chrysler Corporation was headquartered in the building for more than two decades.  At 1,046 feet, the tower held the distinction as the world’s tallest when it opened in 1930.  Located on Lexington Avenue between 42nd and 43rd Streets, the tower features direct access to Grand Central Terminal.  

For generations, the Chrysler Building has been a fixture in popular culture, figuring prominently in a wide variety of movies over the years, including “Avengers,” “Spiderman,” “Men in Black 3,” “Sorcerer’s Apprentice” and “The Wiz.” For New Yorkers and visitors alike, the Chrysler Building represents ambition, optimism, and innovation. With the investment by Tishman Speyer and its partners, and under their stewardship, the building will continue to inspire and remain a world-class workplace for future generations.   

About Tishman Speyer (tishmanspeyer.com)

Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in approximately 40 key markets across the United States, Europe, Asia and Latin America. Our portfolio spans market rate and affordable residential communities, premier office properties and retail spaces, industrial and data center facilities, mixed-use campuses, and real estate credit investments. We create state-of-the-art life science centers through our Breakthrough Properties joint venture, and foster innovation through our strategic proptech investments. With global vision, on-the-ground expertise and a personalized approach, we foster innovation, quickly adapt to global and local trends and proactively anticipate our customers’ evolving needs. By embedding health and wellness, enlightened placemaking and customer-focused initiatives such as our tenant amenities platform, ZO, and our flexible space and co-working brand, Studio, into our buildings, we enhance the experience of the people who work and live there. Since our inception in 1978, Tishman Speyer has acquired, developed, and operated 594 properties, totaling 240 million square feet, with a combined value of approximately $137 billion (U.S.). Our current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, TaunusTurm in Frankfurt, and the Mission Rock neighborhood currently being realized in San Francisco.  

About Cooper Union

The Cooper Union for the Advancement of Science and Art is a world-class private college of art, architecture, and engineering with a faculty of humanities and social sciences. Founded in 1859 by inventor, industrialist, and philanthropist Peter Cooper, the college is dedicated to his founding vision that fair access to an inspiring free education and forums for courageous public discourse foster a just and thriving world. With a student body of more than 900 undergraduate and graduate students, The Cooper Union’s curriculum focuses on helping students acquire technical mastery and entrepreneurial skills, enrich their intellects and spark their creativity, and become inspired to address the critical challenges and opportunities of their time. The institution affords students from all walks of life the opportunity to engage with a distinguished, creative faculty and fosters rigorous, humanistic learning that is enhanced by the process of design and augmented by its urban setting in New York’s East Village. For more information, visit www.cooper.edu.  

About PSP Investments

The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$320.6 billion of net assets under management as of March 31, 2026. It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources, and credit investments. Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal public service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong. For more information, visit investpsp.com or LinkedIn. 

Another excellent deal with world-class partners.

I suggest you read the Financial Times article, Chrysler Building taken over as New York luxury office market booms, to understand why.

When it comes to office buildings anywhere in the world, the quality of the asset matters. As New York City's luxury office market booms, this asset will be in high demand. 

Below, Sunrise Senior Living offers independent living, assisted living, and memory care across 250+ communities in the US and Canada, designed to help seniors live fully and on their own terms with chef-crafted cuisine, meaningful connections, engaging activities, and supportive care when needed.

Also, the Chrysler Building, one of the most iconic symbols of New York City's skyline, represents an era of ambition, elegance, and cutting-edge design. In this video, we take you on a journey through the history, construction, and legacy of this Art Deco masterpiece. From its bold beginnings in the 1920s to its role in shaping Midtown Manhattan, discover how the Chrysler Building became a cultural icon, transcending its status as a mere office tower. 

Through archival footage and stunning visuals, Magnitudes explores the stories of competition, innovation, and creativity that brought this architectural marvel to life. They also explore how the Chrysler Building would stand as the tallest structure in cities like Barcelona and London, emphasizing its ongoing significance and the impact it could have had outside of New York.

Matt Toledo of Chief Investment Officer reports CPP Investments partners with AT&T, GIP on fiber joint venture:

AT&T Corp. announced on Tuesday an agreement with the Canada Pension Plan Investment Board and BlackRock Inc.’s Global Infrastructure Partners unit to form a joint venture to invest in commercial fiber internet infrastructure.

The transaction is expected to close in the first half of 2027, pending regulatory approval.

Under the agreement, AT&T will hold a 50% stake in the venture—Forged Fiber 37—with GIP and CPP Investments owning the other 50%. A statement from AT&T noted that the new organization will accelerate the delivery of the infrastructure needed to support the high-performance connectivity demanded by the artificial intelligence boom.

“Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy,” said James Bryce, CPP Investments’ head of infrastructure, in a statement. “By combining AT&T’s extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund.”

GIP manages more than $200 billion in assets. CPP Investments managed C$863.6 billion ($606.46 billion) in assets as of June 30, benefiting more than 22 million contributors and beneficiaries.  

Investing.com also reports AT&T forms fiber joint venture with GIP and CPP Investments: 

DALLAS - AT&T Inc. (NYSE:T) announced today an agreement with affiliates of Global Infrastructure Partners and Canada Pension Plan Investment Board to form a fiber joint venture combining Forged Fiber 37 and Gigapower operations.

The joint venture will operate as a wholesale fiber commercial open access company. AT&T will hold 50% ownership, with GIP and CPP Investments collectively owning the remaining 50%, according to a press release statement.

Forged Fiber 37 is the subsidiary holding fiber assets AT&T acquired from Lumen Technologies on February 2, 2026. Gigapower is AT&T’s existing wholesale fiber joint venture with GIP.

The transaction supports AT&T’s plans to reach more than 60 million fiber locations by the end of 2030. The joint venture will enable fiber expansion in major metro areas across 16 states, including Arizona, Colorado, Florida, Oregon, and Washington.

"Fiber is the definitive connectivity technology for an AI-driven world," said John Stankey, Chairman and CEO of AT&T. "By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber."

AT&T expects to receive proceeds at closing which it intends to use consistent with its capital allocation priorities, including achieving its net-debt-to-adjusted EBITDA ratio target in the 2.5x range within approximately three years.

The transaction is expected to close in the first half of 2027, subject to customary closing conditions and regulatory approvals.

Until closing, AT&T expects to continue reporting Forged Fiber 37 as held-for-sale and discontinued operations. After closing, AT&T does not expect to consolidate the joint venture’s financial results but plans to report its share of equity income or loss in earnings.

AT&T reaffirmed the financial outlook and capital allocation plan provided in its second-quarter 2026 earnings release.

GIP, part of BlackRock, has over $200 billion in assets under management. CPP Investments manages the Canada Pension Plan Fund, which totaled C$863.6 billion as of June 30, 2026. 

Yesterday, CPP Investments announced it will form a new fibre joint venture with AT&T and Global Infrastructure Partners:

The joint venture will bring together Forged Fiber 37 and Gigapower under one wholesale fiber commercial open access company to accelerate expansion of fiber internet across more U.S. communities 

Key Takeaways: 

• New joint venture will extend AT&T’s fiber scale advantage, bringing the unrivaled benefits of fiber connectivity – ultra high-speed, unmatched capacity, and world-class reliability – to more Americans while laying the foundation for an AI-enabled future 

• This joint venture will create new opportunities for AT&T to grow high-value customer relationships by offering fiber and wireless connectivity services together; customers who subscribe to both enjoy the fastest converged experience in the nation1 25

• Leading digital infrastructure investors Global Infrastructure Partners and CPP Investments will support AT&T’s plans to accelerate fiber expansion across more U.S. communities 

• Transaction is expected to close in the first half of 2027 

TORONTO, ON and DALLAS, TX, (October 6, 2026) – AT&T Inc. (NYSE:T) affiliates and affiliates of Global Infrastructure Partners (“GIP”), a part of BlackRock, and Canada Pension Plan Investment Board (“CPP Investments”) have agreed to form a new U.S. fiber joint venture (the “JV”) to bring fiber to more homes across the country.  

The JV will operate as a leading wholesale fiber commercial open access company and will include Forged Fiber 37 – the newly created subsidiary holding the fiber build engine, network assets, and operations that AT&T recently acquired from Lumen, and Gigapower – AT&T’s existing wholesale fiber joint venture with GIP.2  

The investments by AT&T – America’s largest fiber provider – and GIP and CPP Investments will enable the planned acceleration of fiber builds in more communities across the country. The JV will help accelerate delivery of critical infrastructure needed to help meet America’s growing demand for high-performance advanced connectivity as AI begins to reshape network traffic. This supports AT&T’s plans to reach more than 60 million fiber locations by the end of 2030.3  

“Fiber is the definitive connectivity technology for an AI-driven world,” said John Stankey, Chairman and CEO of AT&T. “Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fiber connectivity to more Americans. By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber, broaden availability of our award-winning services and grow our leadership in converged fiber and 5G connectivity.” 

“Reliable, high-speed connectivity is becoming increasingly essential to how Americans work, learn and access services,” added Mark Florian, Head of GIP Mid-Markets Funds. “By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalization of the global economy.” 

“Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy,” said James Bryce, Managing Director and Head of Infrastructure at CPP Investments. “By combining AT&T’s extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund.”

I was going to cover this deal yesterday but wanted to take my time to cover it properly.

First, it's all about fiber nowadays. Back in March, AT&T said it will invest $250 billion to expand the US connectivity infrastructure:

AT&T will invest more than $250 billion through 2030 to expand fiber, wireless, and satellite connectivity infrastructure across the United States. The spending will also fund workforce training and infrastructure upgrades supporting more than 100 million customers on its networks.

“Today, we’re committing more than $250 billion to increase U.S. connectivity competitiveness and expand access to AT&T’s leading fiber and wireless networks,” AT&T Chairman and CEO John Stankey said.

The investment will support expanded fiber and 5G deployments, satellite coverage through AT&T’s collaboration with AST SpaceMobile (a company working to provide mobile broadband from space), and continued development of FirstNet—the nationwide network built for first responders such as police, firefighters, and emergency medical personnel.

Some have questioned the $250 billion figure, stating it's not as big as it sounds, but it's clear the company is on a mission to build out its fiber network all over the US.

More recently, AT&T announced it will commit $19 billion of investment in California’s fiber and wireless networks by the end of 2030, building the high-speed connectivity required for the next era of innovation and economic growth in the state.   

These are massive expenditures and that's where GIP (now part of Blackrock) and CPP Investments come in to help the company grow its fiber network, owning a big stake in these operations. 

As stated above, under the agreement, AT&T will hold a 50% stake in the venture—Forged Fiber 37—with GIP and CPP Investments owning the other 50%. 

Forged Fiber 37 will accelerate the delivery of the infrastructure needed to support the high-performance connectivity demanded by the artificial intelligence boom.

Just remember, huge telecommunications companies like AT&T need to spend massively to upgrade the US connectivity infrastructure and fiber is what it's all about: 

“Fiber is the definitive connectivity technology for an AI-driven world,” said John Stankey, Chairman and CEO of AT&T. “Demand for symmetrical, high-capacity, low-latency connectivity is only increasing, and this JV will bring the unmatched benefits of high-speed, reliable fiber connectivity to more Americans. By partnering with leading digital infrastructure investors, we see significant opportunity to strengthen our scale advantage in fiber, broaden availability of our award-winning services and grow our leadership in converged fiber and 5G connectivity.” 

“Reliable, high-speed connectivity is becoming increasingly essential to how Americans work, learn and access services,” added Mark Florian, Head of GIP Mid-Markets Funds. “By bringing Gigapower and Forged Fiber 37 together, this joint venture with AT&T and CPP Investments aims to help meet growing demand for high-capacity broadband, while providing our clients with exposure to a scaled infrastructure business positioned to benefit from the long-term digitalization of the global economy.” 

“Demand for reliable, high-capacity connectivity continues to grow, making fiber infrastructure an increasingly important part of the digital economy,” said James Bryce, Managing Director and Head of Infrastructure at CPP Investments. “By combining AT&T’s extensive fiber expertise with strategic capital, this joint venture is well positioned to expand critical connectivity across the United States and to generate long-term investment value for the CPP Fund.”

John Stankey, AT&T's CEO (featured above), has done a fantastic job leading this company, and he's not done yet.

This deal also reminds me of PSP's joint venture with BCE to accelerate Zipply Fiber's growth (see my coverage here).

It's not the same scale but you see how big telecom companies are partnering up with long-term capital investors to accelerate the growth of their fiber network.

That's a smart and efficient use of capital.

Below, AT&T CEO John Stankey and Corning Chairman and CEO Wendell Weeks discuss their companies' $3 billion fiber agreement on 'The Claman Countdown (from September 29th).

Also, what’s driving the next big shift in telecom? Nicolai Tangen talks with John Stankey, President and CEO of AT&T, about transforming a 150-year-old company for the AI era. They discuss why fiber infrastructure is critical, how AI will drive unprecedented data demand, and the role of satellite connectivity. 

Stankey shares his philosophy on cultural change, managing 130,000 employees, and why AT&T is focused on North America. With millions of customers and major fiber investments underway, AT&T is positioning itself for the next decade.

Brett House, a Canadian professor of economics at Columbia Business School, wrote a comment for the Globe and Mail on how to get Canada’s pension funds to invest more in startups:

The recent Canada Investment Summit mobilized $500-billion in new capital, according to the federal government, demonstrating that the world is paying attention to the country, particularly our major infrastructure and resource projects.

Canada now needs to put the same spotlight on the financing of its early-stage companies.

Canada’s major public pension funds, the Maple Eight, manage $2.6-trillion in assets, but just a fraction of these finance the country’s venture and growth companies, the engines of innovation and high-value job creation.

While the Investment Summit saw Canadian pension funds and insurers commit $100-billion in fresh capital to domestic investments, new funding for early-stage tech companies barely registered. The most exciting announcement for this sector, the roughly $1.4-billion Radical Breakouts Fund, underscored the scarcity of capital for innovation.

Canadian venture-capital fundraising declined year-over-year by 39 per cent to just over $2-billion in 2025. That’s well off the recent peak of $7.4-billion in 2022.

Consequently, when Canada’s most promising companies are ready to grow, they tend to seek foreign financing, largely from the U.S. In 2024, 84 per cent of Canadian companies’ growth-stage fundraising rounds included American investors. Moreover, in 2025, 60 per cent of venture capital raised in Canada came from American sources, the highest share in a decade. American funding increases the odds these companies will relocate to the U.S.

This won’t be changed through peer pressure or mandates imposed on the Maple Eight. Browbeating Canada’s pension funds into financing the country’s scale-ups is at odds with these funds’ fiduciary responsibilities and the opportunities innovation investing presents.

Fortunately, we have a model proven to draw investment into Canada’s venture capital pipeline. In 2013, the Canadian government launched the Venture Capital Action Plan (VCAP) and followed it with two rounds of the Venture Capital Catalyst Initiative (VCCI) in 2017 and 2021. An independent study for the Business Development Bank of Canada found that a combined government commitment of about $1.2-billion under the VCAP and VCCI has catalyzed more than $17-billion in private financing for Canada’s innovation economy.

These programs aren’t handouts. The federal government invests alongside private capital in a subordinated role: private investors get repaid first and earn enhanced returns. The government’s junior claims encourage private investments that may not otherwise happen. When investments succeed, the government shares their success.

This structure is consistent with the institutional duties of the Maple Eight. It provides diversified exposure to professionally selected investments on commercial terms, and Ottawa’s junior position boosts private capital’s risk-adjusted returns.

This model has also delivered results: in the BDC study, cash distributions to private investors in VCAP and VCCI partner funds outpaced global benchmarks for conventional fund structures, a direct result of Ottawa’s secondary role and strong asset selection by these funds.

Until now, these programs haven’t been structured to match the Maple Eight’s needs: most investment opportunities were too small for them and retaining capital at home wasn’t the priority it is now. The costs are visible today: the equity structures of some of Canada’s most successful innovation companies are dominated by American investors.

Canada’s Budget 2025 earmarked $1-billion for a new Venture and Growth Capital Catalyst Initiative (Growth VCCI), nearly three times more than its predecessors. Ottawa needs the Maple Eight’s engagement in it to attract the multiples of Canadian private capital achieved by the VCAP and VCCI. The right incentives are required to achieve this.

The Growth VCCI must be able to invest across the full lifecycle of innovative firms, from startups to later-stage growth companies, to facilitate pension fund co-investment. The Maple Eight will participate in the Growth VCCI if they can flexibly match opportunities to their mandates.

Ottawa should link infrastructure access to venture commitments. Rather than preaching to the Maple Eight or politicizing their investment decisions, participation in the airport concession scheme could be structured as an incentive to work with the Growth VCCI. Pension funds already prize infrastructure’s stable, long-term yields, which makes it a natural way to engage these funds with Canada’s innovation agenda.

In addition, the country’s pension funds should publicly report their allocations to Canadian venture and growth investments. What’s measured gets done.

With these features, the federal government could make the case for the Growth VCCI on returns, not nationalism. This argument would move real money.

Alright, Quebec elections today, my attention is focused there, but I wanted to cover this quickly.

I recently discussed why OMERS promoted Laura Lenz to lead its ventures group, noting this:

I've seen it all in venture cap: the good, the bad and downright ugly (I was at BDC in 2008, VC got massacred).

It's not an easy game but necessary and can be lucrative (just look at OTPP's success with SpaceX, and soon Anthropic and other companies in its portfolio, including Harvey, the leading AI legal platform). 

For it's part, OMERS Ventures has done very well with Xanadu despite that stock's recent selloff. 

Its Canadian focus comes at the right time but there is competition in the space.

I recently covered the Canada Investment Summit where I noted Radical Ventures launched Canada’s largest AI fund with $1-billion USD first close and lots of top Canadian pension funds backing it.

I said Canada's VC industry desperately needs major capital and expertise to nurture startups into mature growth companies. Hopefully this new fund will be a huge success.  

I wish the same for OMERS Ventures as Laura Lenz takes over the helm.

Just remember, venture cap is never an easy game; you can allocate $5 million or more to 100 companies and are lucky if one or two hit a home run (or grand slam like SpaceX). 

This is why pension funds typically allocate between 1 and 3% of their total assets to venture cap/ growth equity. 

Now, should Canada's pension funds report exactly how much they invest in Canadian startups (venture cap)? Sure, I am all for that proposal; more transparency is always better than less.

But should they invest more in Canadian venture capital specifically? There, I am more skeptical than Brett House and will freely explain why.

Most of the best opportunities in venture capital lie in the US. It's not even close because that's where the best, most innovation tech companies arise and they have the best ecosystem to nurture these companies, scale them and make them into global powerhouses (think Mag-7 and more recently SpaceX, Anthropic, OpenAI).

In Canada, apart from Shopify, there haven't been as many global tech successes. That's just a fact.

And I seriously doubt if the Maple 8 throw more capital their way, Canadian tech startups will rival their US counterparts.

Moreover, there's a reason why Canadian startups get funded by US VC funds; they're generally better positioned to help them grow their operations over the long run.

Sure, we have some good VC funds up here, but nowhere close to what they have down south.

Nor do we have a Nasdaq up here. 

All this to say, I'm genuinely skeptical about all these proposals for the Maple 8 to fund more venture capital in Canada. Something just doesn't sit well with me.

Alright, let me end it there; time to watch Quebec election results.  

Below, on this episode of The Buck Stops Here, host Catherine Murray speaks with John Ruffolo, founder and managing partner of Maverix Private Equity, about Canada's economic sovereignty. Ruffolo explains why he believes Canada's greatest trading partner must be itself, why exporting raw resources and buying back finished goods isn't a path to prosperity, and how food and healthcare security became urgent lessons after COVID. 

He also unpacks how Canada birthed the AI industry through Geoffrey Hinton's research at the University of Toronto but failed to commercialize it, and why critical minerals and domestic processing could put Canada back in the game. Excellent discussion; John provides great insight shere.

Sarah Min, Davis Giangiulio, Chloe Taylor,Lee Ying Shan and Ananya Chetia of CNBC report stocks rise Friday after soft jobs data, Nvidia leads Nasdaq to intraday record: 

Stocks rose Friday following a surprisingly weak jobs report that raised hopes the Federal Reserve will hold rates steady in October.

The Dow Jones Industrial Average added 250 points, or 0.5%, to close at 51,176.46. The S&P 500 gained 0.7%, rising 56.27 to 7,722.72, while the Nasdaq Composite climbed 1.2%, adding 319.27 to 27,190.86, hitting an all-time high earlier in the day before pulling back as Treasury yields reversed course.

Despite Friday’s rally, the Dow was down for the week by about 1.3%. The S&P was little changed, off 0.3%, while the Nasdaq was up 0.6% on the week, with Friday marking its third straight advance.

Treasury yields initially fell Friday following the September employment report, but later rebounded, pushing U.S. equities off their highs for the session.

Tech stocks rallied as risk-taking returned on Wall Street, with shares of Nvidia hitting an all-time high for the first time since May, though it eventually closed below its previous record close. CrowdStrike, Palo Alto Networks and AMD also all rose to all-time highs. Shares of AMD also rose nearly 3%.

Last month’s nonfarm payrolls report showed the U.S. economy added 29,000 jobs last month, with unemployment rising to 4.2%. The Dow Jones consensus called for jobs growth of 84,000 and for the unemployment rate to hold steady at 4.1%.

“This is the exact kind of number the market wanted from a labor standpoint,” said Phil Blancato, chief market strategist at Osaic. “Not too hot, not too cold ... not overly great, and not weakening.”

That number made traders reassess the next move for the Federal Reserve. Fed funds futures trading suggests a 77% likelihood the central bank will stand pat at this month’s meeting, according to the CME FedWatch Tool.

Saira Malik, chief investment officer at Nuveen, told CNBC’s “Squawk Box” that the report may give the market support before earnings season kicks off, which she thinks will be “very strong.”

“So, I think this could be the start of the Santa Claus rally that we’ve all been hoping for,” she said.

Oil prices pulled back, supporting equities, following a report that European nation states are considering a release of strategic fuel reserves following pressure from the Trump administration.

Investors are coming off a modestly higher session Thursday, to start off the month of October. However, the Dow and the S&P 500 were headed for weekly losses amid a global bond rout, while the Nasdaq was the only major average on pace to end the week with gains.

Alright, it's Friday and the big story of the day was US nonfarm payrolls rose by just 29,000 in September, well below the 84,000 forecast:

The U.S. economy created far fewer jobs than expected in September, pointing to a surprising soft spot in the labor market and broader economy.

Nonfarm payrolls rose a seasonally adjusted 29,000 for the month while the unemployment rate increased to 4.2%, the Bureau of Labor Statistics reported Friday. Economists surveyed by Dow Jones had been looking for job growth of 84,000 and an unemployment rate of 4.1%.

In addition to the weakness in September, the August jobs count was revised lower to reflect a gain of 133,000 while July switched from a gain to a loss as payrolls fell by 10,000. The revisions in total showed 60,000 fewer jobs than previously reported.

Market reaction was swift to the report, with traders interpreting the soft jobs numbers as good news as they likely further cemented the Federal Reserve staying put at its October meeting. 

The other related story is how September's jobs report extended a trend that illustrates consumers' widespread pain: Their pay is not keeping pace with inflation.

Average hourly earnings rose an anemic 0.1% month over month and are up 3% year over year, new Labor Department data shows. That's against a backdrop of inflation data, which showed, most recently, prices growing at a 3.4% rate as of August. 

So real wages are contracting, which never bodes well for the economy.

As far as markets, the US 10-year Treasury yield initially dropped to 5.16% on the news and then bounced back to close at 5.28%. 

Traders are not pricing in a Fed rate hike in October (no way the Fed is moving right before midterms), but December remains open for a rate hike.

It's clear that rate increases are starting to bite cyclical sectors like housing but the wildcard remains inflation. We need to see the effects of oil prices and economy over the next couple of months to see if reports come in cooler than expected.

If so, yields will tumble further but there remains one big caveat: US debt keeps exploding. 

Worse still, President Trump just soft-launched higher inflation as the new solution for rebalancing the $40 trillion US national debt.

I'm sure the bond vigilantes will love that idea!

In all seriousness, I think we are closer to an interim end when it comes to rising bond yields as inflation expectations peak, so I'd be careful here extrapolating recent action in the bond market well into the future.

Maybe that's stocks once again shrugged off rising yields this week, And once again, Big Tech  led the rest of the sectors:

But while everyone is focused on Nvidia, there were other stocks that experienced big gains this week, including Kodiak Sciences (KOD), Iovance Biotherapeutics (IOVA) and Immunitybio Inc (IBRX):

Iovance was my top biotech holding (took profits this week). I know the company extremely well and think it has a very bright future.

Alright, not much more to add this week, time to relax and enjoy my little guy.

Below, Jan Hatzius, chief economist at Goldman Sachs, joins 'Squawk on the Street' to discuss September jobs report, future activity of The Fed, and more.

And the CNBC Investment Committee reveals their portfolio strategy as yields continue to rise.