Sean Conlon, Lee Ying Shan, Ananya Chetia and Chloe Taylor of CNBC report the Dow tumbles more than 260 points after strong jobs report reignites rate hike fears:

The Dow Jones Industrial Average fell on Friday as August’s hotter-than-expected payrolls reading increased expectations that the Federal Reserve could raise interest rates at its next meeting.

The 30-stock Dow was down 271.86 points, or 0.51%, closing at 53,414.25. The S&P 500 slid 0.38% to end at 7,718.60, while the Nasdaq Composite dropped 0.29% to 26,506.99.

Nonfarm payrolls grew 162,000 last month, much more than the 53,000 that economists polled by Dow Jones expected. The unemployment rate held steady at 4.1%, as expected. On top of last month’s gain, figures for both June and July saw upward revisions.

Treasury yields rose following the report, with the 2-year yield hitting its highest level since January 2025. Expectations that the Fed could raise rates in a couple weeks increased, as fed funds futures traders are now pricing in a 58% chance of a hike, per the CME FedWatch tool. Odds were at 49.4% a day ago.

“A monster jobs report for August reminds us that this labor statistic has become highly volatile while nudging up the probability of a September hike slightly,” said Bradford Smith, portfolio manager at Janus Henderson Investors.

Now, the debate surrounding the Fed “will sit handily on the incoming inflation data,” he added. “After a hawkish appearance from Chairman Warsh at Jackson Hole last week, there is a clear bias at the Fed to take action if the incoming data does not show further progress on disinflation.”

The three major averages rose on Thursday, catching a tailwind as Treasury yields pulled back after Federal Reserve Governor Christopher Waller said he would be “inclined to support” keeping rates at their current target range of 3.5% to 3.75% at the central bank’s Sept. 15-16 meeting.

However, the Dow dropped 0.3% during the week. The S&P 500 added 0.1% week to date, while the Nasdaq notched a 0.4% gain. 

Stephen Culp and Niket Nishant of Reuters also report Wall Street ends lower as solid jobs data fuels hawkish Fed bets:

NEW YORK, Sept 4 (Reuters) - Wall Street dipped on Friday as a robust jobs report raised the probability that the U.S. Federal Reserve will increase its key interest ‌rate at this month's monetary policy meeting.

All three major U.S. indexes closed lower amid a broad selloff ahead of the three-day holiday weekend.

For the week, the indexes were essentially unchanged.

The Labor Department's August employment report showed the U.S. economy added 162,000 jobs last month, nearly three times the 56,000 consensus, while the department revised June and July payrolls ​upward by a total of 55,000 jobs. Labor market participation increased while the unemployment rate held firm at 4.1%.

While a stronger-than-expected jobs report would generally be good economic news, markets are interpreting it as a sign the data-dependent Fed will ⁠implement a rate hike at the conclusion of this month's policy meeting to curb war-related energy price pressures from morphing into broader, more systemic inflation.

"The labor market had a nice snapback last month, and it's hard not to think an improving labor market is not a positive development for the economy," said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska. "On the flip side, the odds of a Fed hike increased a little bit as the economy continues to run a little on the hot side."

"We'll get a lot more clarity on inflation next week at the consumer and producer levels," Detrick added, referring to the Labor Department's consumer and producer price indexes.

Financial markets are pricing in a 58.4% likelihood of a 25-basis-point rate hike at the conclusion of the Fed's September meeting, up from 49.4% on Thursday, according to CME's FedWatch tool.

The Dow Jones Industrial Average fell 272.51 points, or ‌0.51%, to ⁠53,413.60, the S&P 500 lost 29.30 points, or 0.38%, to 7,718.41 and the Nasdaq Composite lost 77.07 points, or 0.29%, to 26,506.99.

Among the 11 major S&P 500 sectors, consumer discretionary stocks were down the most, while industrials and tech showed modest gains.

Semiconductors (SOX) were clear outperformers, gaining 3.4%, but remain down 17.8% this quarter. Software and services having gained 24% over the same period, were clear laggards on the day, dropping 2.1%.

Lululemon Athletica (LULU) tumbled 17.4% after the activewear brand cut its full-year profit and revenue forecasts.

Adobe (ADBE) dropped 6.7% following its announcement that longtime CEO ⁠Shantanu Narayen will be succeeded by insider Anil Chakravarthy.

U.S. credit reporting agencies lost ground after Federal Housing Finance Agency Director Bill Pulte said on Thursday he directed Fannie Mae and Freddie Mac, created by the U.S. Congress to support the housing market, to approve all lenders to use the credit scoring system VantageScore.

Fair Isaac (FICO) lost 16.7%, TransUnion (TRU) dropped 5.9%, while ⁠Equifax (EFX) slid 6.4%.

U.S. markets will close on Monday in observance of the Labor Day holiday.

Declining issues outnumbered advancers by a 1.04-to-1 ratio on the NYSE. There were 151 new highs and 167 new lows on the NYSE.

On the Nasdaq, 2,478 stocks rose and 2,256 fell as advancing issues outnumbered decliners by a ⁠1.1-to-1 ratio.

The S&P 500 posted three new 52-week highs and six new lows while the Nasdaq Composite recorded 61 new highs and 99 new lows.

Volume on U.S. exchanges was 13.14 billion shares, compared with the 14.89 billion average for the full session over the last 20 trading days.

This morning all eyes were on the solid US August jobs report, fuelling speculation the Fed will cut rates at its next meeting on September 15-16.

While the jobs report was much better than expected and previous months revised up, I still maintain the Fed will likely not raise rates this month.

Of course, a hot inflation report next week might seal the deal for a rate hike but as I stated last week, this is much ado about nothing.

Importantly, even if the Fed raises by 25 basis points, it's a one-and-done deal, so this will not have a major impact on markets.

In other news today, President Trump demanded that the Federal Reserve slash interest rates or else he will cut off trade with countries with which the U.S. maintains trade deficits. He doubled down in the Oval Office later Friday, saying, “we should be paying the lowest interest rate in the world.” 

These demands and threats are baseless and only make the Fed's job more difficult. Moreover, higher tariffs will fuel more inflation, which will put upward pressure on yields, so he should be careful making these statements.

On another interesting note, Norway’s mammoth sovereign wealth fund wants to cut its holdings of government bonds, chiefly affecting US Treasurys, as it seeks greater returns elsewhere: 

Norway’s sovereign wealth fund has proposed cutting the allocation of government bonds in its $2.3 trillion investment portfolio, chiefly affecting its holdings of U.S. Treasurys, as it seeks to diversify its risk exposure and boost returns.

The heads of Norges Bank Investment Management wrote in a letter to the country’s Finance Ministry, made public Friday, that it recommended reducing the government subindex of its bond holdings from 70% to 50% — a level it said would provide sufficient liquidity during market turbulence while allowing it to seek greater returns elsewhere.

The proposed reallocation would gradually cut NBIM’s Treasury holdings from 34.1% to 21.9%, reduce its euro area holdings from 16.8% to 14.1%, and increase its share of Japanese government bonds to 7.4% from 4.6%.

NBIM also wants to begin weighting its government bond holdings by market value instead of gross domestic product because of the high debt loads of almost all developed economies. 

Makes perfect sense to me, and this has nothing to do with politics.

Alright, some stock market news to end this comment.

First,  this week's top-performing US large-cap stocks (full list here; I circled the ones that caught my attention):

Next, the worst-performing US large-cap stocks this week (full list here; I circled the ones that caught my attention): 

There were other stocks that caught my attention this week, like Snowflake which surged 22% on Thursday after cloud-based software company posted a blowout second quarter with revenue surging 35% to $1.55 billion:

 This stock hit a 52-week low of $118 when the Saascopalypse hysteria hit markets back in March- April, and only Brad Gerstner was pounding the table to buy (software stocks are up nearly 40% since the ‘SaaSpocalypse’ bottom).

That was a great buying opportunity.

What else? Shares of Ciena continue to struggle after a huge run-up into June. The stock tumbled on Thursday despite beating on earnings this morning:

But generally speaking, momentum stocks (MTUM) caught a bid this week led by semis (SMH):

Still, looking at those charts, it's unclear to me that momentum is turning the corner here in any convincing way. I would need to see what lies ahead in the coming weeks.

Over in Biotech Land, shares of Ultragenyx Pharmaceutical Inc. (RARE) are down 40% this week after the company announced its rare-disease drug candidate failed to meet its main goal in a late-stage trial:

Still, some analysts believe the drugmaker has plenty of life left in its pipeline and I do note one of the top biotech funds, RTW Investments, is the second-biggest holder of shares after BlackRock. 

Lastly, the stock of the week, a micro-cap called bioAffinity Technologies, Inc. (BIAF):

 

The stock is up 213% this week, 2,676% over the past month, was literally trading at 41 cents on August 17th. It looks like it's tumbling back down to earth in after-hours trading (another pump-and-dump scam).

Alright, enjoy your long Labour Day weekend, I'll be back next week.

Below, Investment Committee debates the return of the Mag 7 and share their top strategies with those names.

Also, Jeremy Siegel, Wharton School Professor of finance, joins 'Closing Bell' to talk what the August jobs report means for the FOMC's next rate hike decision.

Lastly, Rick Bensignor, Bensignor Investment Strategies founder and managing partner, joins 'Closing Bell Overtime' to talk the technical trade around markets, bond yields, and commodities.

Josh Welsh of Benefits and Pensions Monitor reports La Caisse, SMBC Aviation Capital expand aircraft leasing platform to US$3 billion:

Canadian pension fund manager La Caisse and SMBC Aviation Capital have doubled the size of Maple Aircraft Company Holdings (MACH), their joint aircraft financing and leasing platform, from US$1.5 billion to US$3 billion, according to a release Thursday.

The expansion, announced September 3, follows the full deployment of MACH's initial capital commitment ahead of the original timeline. Launched in 2024, the platform has assembled a portfolio of 21 aircraft leased to 13 airline customers across 10 markets, focusing on new-technology, fuel-efficient models. The investment period now extends through December 2029.

SMBC Aviation Capital, which services a fleet of more than 1,750 aircraft with over 170 airlines globally, will continue to source transactions for MACH and act as servicer.

Demand for flexible financing

"The successful deployment of MACH demonstrates the strength of our partnership with La Caisse and the continuing demand for flexible aircraft financing solutions," Barry Flannery, chief commercial officer of SMBC Aviation Capital, said.

Expanding the platform positions the partners to support airline customers seeking access to the fuel-efficient aircraft types currently most in demand, he added.

Martin Longchamps, executive vice-president and head of private equity and private credit at La Caisse, pointed to the combination of specialized aviation expertise, deep industry relationships and patient long-term capital as a driver of MACH's early results.

"With favourable long-term market dynamics and increasing demand for flexible financing solutions, MACH is well-positioned to expand its portfolio and capitalize on attractive opportunities across the aviation leasing market," he said. 

Today, La Caisse and SMBC Aviation Capital announced they doubled the size of their aircraft leasing platform, Maple Aircraft Company Holdings, to USD 3 billion:

• Launched in 2024, MACH has fully deployed its initial USD 1.5‑billion commitment ahead of schedule.
• With an investment period extended through 2029, MACH will continue expanding its portfolio of new technology, fuel-efficient aircraft, building on 21 aircraft leased to 13 airlines worldwide.

La Caisse (formerly CDPQ), a global investment group, and SMBC Aviation Capital, the leading global aviation finance platform, announced today the expansion of Maple Aircraft Company Holdings Limited (MACH), their joint aircraft financing and leasing platform.

Following the full deployment of its initial USD 1.5‑billion commitment ahead of schedule, the platform will grow to USD 3 billion and extend its runway through December 2029, expanding its capacity to provide airlines with flexible financing solutions for modern, fuel-efficient new-technology aircraft. Since its launch in 2024, MACH has built a portfolio of 21 aircraft leased to 13 airline customers across 10 markets.

SMBC Aviation Capital will continue to source transactions for the platform and act as servicer.

“The successful deployment of MACH demonstrates the strength of our partnership with La Caisse and the continuing demand for flexible aircraft financing solutions,” said Barry Flannery, Chief Commercial Officer of SMBC Aviation Capital. “Expanding the platform with our trusted partner, La Caisse, positions us to build on this momentum and continue to support our airline customers worldwide with access to modern, fuel-efficient aircraft of the types that are most in demand.”

“MACH’s strong execution since 2024 demonstrates the value of bringing together specialized aviation expertise, deep industry relationships and patient long-term capital,” said Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit at La Caisse. “With favourable long-term market dynamics and increasing demand for flexible financing solutions, MACH is well-positioned to expand its portfolio and capitalize on attractive opportunities across the aviation leasing market.”

ABOUT SMBC AVIATION CAPITAL

SMBC Aviation Capital is the leading global aviation finance platform, servicing a fleet of over 1,750 aircraft with more than 170 airlines globally. Benefiting from the strong support of its shareholders, Sumitomo Mitsui Finance and Leasing Company, Sumitomo Mitsui Financial Group and Sumitomo Corporation, SMBC Aviation Capital has a high-quality global airline customer base with an owned portfolio comprising 80% new technology aircraft (by net book value). SMBC Aviation Capital has a strong capital position and holds an A- and BBB+ rating with S&P and Fitch respectively, reflecting the long-term strength of its business. For more information, please visit: www.smbc.aero.

ABOUT LA CAISSE

La Caisse has invested for over 60 years with a dual mandate: generate optimal long-term returns for its 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, La Caisse is active in the major financial markets, private equity, infrastructure, real estate and private credit. As at June 30, 2026, it held CAD 552 billion in net assets. For more information, visit LaCaisse.com, LinkedIn or Instagram.

La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries. 

Go back to read my comment on why La Caisse (formerly known as CDPQ) partnered up with SMBC Aviation back in early 2024 to finance a US$1.5 billion aircraft leasing platform (read my comment here).

Clearly, this platform has taken off in a big way, and that is why La Caisse decided to double its initial capital commitment to Maple Aircraft Company Holdings (MACH), their joint aircraft financing and leasing platform, from US$1.5 billion to US$3 billion. 

SMBC Aviation Capital headed by CEO Peter Barrett (featured at the top of this post), is a very impressive company that services a dynamic sector of aircraft leasing in the aviation industry. 

I recommend you read its 2025 Annual Report here and see the main highlights below and the CEO review starting on page 8 of the report:  

Barry Flannery, Chief Commercial Officer of SMBC Aviation Capital explains why this partnership is working well:

"The successful deployment of MACH demonstrates the strength of our partnership with La Caisse and the continuing demand for flexible aircraft financing solutions. Expanding the platform with our trusted partner, La Caisse, positions us to build on this momentum and continue to support our airline customers worldwide with access to modern, fuel-efficient aircraft of the types that are most in demand.”

Martin Longchamps, Executive Vice-President and Head of Private Equity and Private Credit at La Caisse, also sums it up well in the press release:

"MACH’s strong execution since 2024 demonstrates the value of bringing together specialized aviation expertise, deep industry relationships and patient long-term capital. With favourable long-term market dynamics and increasing demand for flexible financing solutions, MACH is well-positioned to expand its portfolio and capitalize on attractive opportunities across the aviation leasing market."

Below is a corporate video explaining SMBC Aviation's operations (2024). Very impressive company and a leasing platform that is growing fast with La Caisse and other strategic partners by its side.

Also, James Kelly, Head of Aviation Finance at KPMG, recently sat down with Peter Barrett, CEO of SMBC Aviation, to discuss recent trends in the industry. Great interview; take the time to listen to Barrett's comments.

Ranjani Raghavan of Bloomberg reports La Caisse buys US$1.3 billion stake in Indian telecom tower firm: 

Caisse de Depot et Placement du Quebec, Canada’s second-largest pension manager, is investing 121 billion rupees (US$1.3 billion) in Brookfield Asset Management-backed Altius Telecom Infrastructure Trust, which operates more than 258,000 telecom towers in India.

La Caisse will acquire a 24 per cent stake in Altius, with Brookfield continuing as the largest shareholder, according to a media statement Wednesday. Other existing investors include GIC Pte and British Columbia Investment Management Corp.

The deal reflects growing interest among global investors for Indian infrastructure assets, with Blackstone Inc., KKR & Co. and Macquarie Asset Management ramping up investments.

Earlier this week, CPP Investments, Ontario Teachers’ Pension Plan Board, Temasek Holdings Pte, AustralianSuper and others backed the National Investment and Infrastructure Fund Ltd.’s latest fund.

La Caisse’s other India investments include Azure Power India Pvt., Apraava Energy Pvt. and Maple Infrastructure Trust. It manages US$552 billion of assets globally.  

 DealRoom also reports La Caisse buys 24% of India tower giant Altius for C$1.76B:

What's the deal? Canadian investment group La Caisse has acquired a 24% stake in Altius Telecom Infrastructure Trust, India's largest independent telecom tower platform, for roughly INR 121 billion (C$1.76 billion). The transaction is complete. Brookfield remains Altius' largest investor, alongside La Caisse and existing shareholders affiliated with GIC and British Columbia Investment Management Corporation (BCI).

What each side brings: Altius owns and operates more than 258,000 telecom towers and sites across India, the infrastructure that lets mobile operators deliver 4G and 5G services. La Caisse — formerly CDPQ — held C$552 billion in net assets as of June 30, 2026, and points to its existing telecom tower and digital infrastructure holdings worldwide.

Why now? India is the world's second-largest telecommunications market, and rising mobile data use and 5G rollout are driving demand for more towers. "As India's economy grows and more people and businesses rely on higher use of mobile data, the infrastructure behind those connections needs to keep pace," said Emmanuel Jaclot, La Caisse's head of infrastructure and sustainability.

What's the endgame? Brookfield, which manages over $1 trillion in assets, plans to keep backing Altius' expansion. "We will continue to support Altius' next phase of growth by deploying our owner-operator capabilities and disciplined, long-term approach to infrastructure investing," said Sam Pollock, chief executive officer of Brookfield's Infrastructure group.

The signal: The deal adds another large institutional investor to a single Indian tower platform, pooling La Caisse, Brookfield, GIC, and BCI behind the country's connectivity buildout. It signals that global infrastructure capital continues to treat India's 5G expansion as a long-term bet.

Earlier today, La Caisse announced it will invest alongside Brookfield in Altius, India’s largest independent telecom tower platform:

• Investment reflects growing demand for mobile connectivity and 5G infrastructure in India.

Global investment group La Caisse (formerly CDPQ), and Brookfield today announced that La Caisse has invested approximately INR 121 billion (CAD 1.76 billion) to acquire a 24% stake in Altius Telecom Infrastructure Trust (“Altius”), India’s largest independent telecom tower platform. With the transaction now complete, Brookfield remains Altius' largest investor, alongside La Caisse and existing shareholders who are affiliates of GIC and British Columbia Investment Management Corporation (BCI).

Altius owns and operates more than 258,000 telecom towers and sites across India, giving it a nationwide presence. The platform provides the infrastructure that enables mobile operators to deliver 4G and 5G services. India is the world’s second-largest telecommunications market, and continued growth in mobile data use and 5G is increasing the need for digital infrastructure.

“As India’s economy grows and more people and businesses rely on higher use of mobile data, the infrastructure behind those connections needs to keep pace,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure and Sustainability at La Caisse. “This is a sector we know well through our investments in telecom towers and digital infrastructure around the world. With Altius, we are investing in an attractive market through an established platform, alongside Brookfield and other institutional partners with whom we have longstanding relationships.”

Sam Pollock, CEO of Brookfield’s Infrastructure group, said, “Altius has built a scaled, nationwide platform that is in a leading position to meet India’s demand for mobile connectivity and 5G infrastructure. La Caisse’s investment brings another long-term institutional partner to the platform and reflects confidence in the strength of the business. Alongside our partners, we will continue to support Altius’ next phase of growth by deploying our owner-operator capabilities and disciplined, long-term approach to infrastructure investing.”

ABOUT LA CAISSE

La Caisse has invested for over 60 years with a dual mandate: generate optimal long-term returns for its 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.

As a global investment group, La Caisse is active in the major financial markets, private equity, infrastructure, real estate and private credit. As at June 30, 2026, it held CAD 552 billion in net assets. For more information, visit LaCaisse.com, LinkedIn or Instagram.

La Caisse is a registered trademark of Caisse de dépôt et placement du Québec that is protected in Canada and other jurisdictions and licensed for use by its subsidiaries.

ABOUT BROOKFIELD

Brookfield is a leading global investment firm with over $1 trillion in assets under management that owns and operates real assets and essential service businesses that form the backbone of the global economy. We invest on behalf of institutions and individuals around the world across infrastructure, energy, private equity, real estate, and credit—sectors critical to supporting economic growth and productivity. With a heritage spanning more than a century and operations in over 30 countries, we deploy long-term, patient capital to build the foundational assets and businesses that power a more connected, resilient, and sustainable future—seeking to build long-term wealth for our clients while delivering strong risk-adjusted returns for our shareholders.

For more information, please visit our website at www.brookfield.com. 

Alright, another big deal for La Caisse, acquiring a 24% stake in Altius Telecom Infrastructure Trust (Altius), India’s largest independent telecomtower platform.

La Caisse joins Brookfield, which will remain the largest shareholder, as well as GIG and BCI, which own a minority stake in Altius.

Just a little refresher. Back in 2024, BCI put out a press release that a Brookfield-led consortium completed the acquisition of the Indian tower business of American Tower Corporation:

• To own the largest tower portfolio in India and is the largest platform globally ex-China with 257,000 telecom sites

• Telecom Infrastructure portfolio will be housed under the new brand name Altius

Data Infrastructure Trust (“DIT”), an Infrastructure Investment Trust sponsored by Brookfield Asset Management (“Brookfield”) along with affiliates of investors including British Columbia Investment Management Corporation (BCI) and GIC today completed the acquisition of 100% of American Tower’s operations in India (“ATC India”). This transaction, approved by the Competition Commission of India, comprises the buyout of approximately 76,000 communications sites in India for an enterprise value of INR 182 billion (~$2.2 billion). With this acquisition, the Brookfield-led consortium reinforces its commitment to connecting India with an expanded portfolio of 257,000 telecom sites.

DIT currently houses Summit Digitel and Crest Digitel and is managed by its Investment Manager, Data Link, an affiliate of Brookfield. With this acquisition, Summit Digitel, Crest Digitel, and ATC India will be combined under the new brand name: Altius. The new brand embodies the organization’s commitment to developing and managing the highest quality telecom infrastructure that fuels progress and innovation for connecting India. This expanded telecom infrastructure footprint will ensure Altius is well positioned to provide a broader array of solutions to India’s telecom ecosystem.

Commenting on the acquisition, Arpit Agrawal, Managing Partner, Head of Infrastructure, India & Middle East, Brookfield said, “Our expertise, rooted in our history as an owner and operator of high-quality businesses, is exemplified by our acquisition of ATC India. It complements our existing business and further strengthens our footprint, creating the largest tower portfolio in the country and one of the largest platforms globally. We are pleased to continue to support the Digital India initiative with acquisitions of scale.”

Munish Seth, Group Managing Director, Data Link, said, “We are excited to enter the next phase of growth, where our enhanced digital connectivity will play a crucial role in transforming India’s telecom infrastructure. The acquired sites diversify Altius’ revenue streams creating value for our unit holders, while our scale, operational strength, and innovative capabilities position us to meet the evolving needs of the Indian telecom market and create long-term value for all stakeholders.”

This is Brookfield’s third acquisition in the Indian telecommunications space. In 2022, Brookfield acquired a portfolio of 6,300 indoor business solution sites and small cell sites, which advances the rollout of 5G and enables telecom operators to extend their coverage capacity in difficult-to-access and dense areas. Brookfield also has a portfolio of approximately 175,000 towers that were acquired in 2020 from Reliance Industrial Investments and Holdings Limited.

In India, Brookfield has approximately $29 billion in assets under management across Infrastructure, Real Estate, Renewable Power & Transition, and Private Equity.

About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.

About Data Infrastructure Trust
Data Infrastructure Trust (BSE: DATAINFRA) is an infrastructure investment trust (InvIT) set up with the objective of undertaking investment activities as an InvIT, under the SEBI InvIT Regulations and is sponsored by Brookfield Asset Management. DIT is managed by its Investment Manager, Data Link, an affiliate of Brookfield. DIT is the world’s largest telecom infrastructure platform (ex-China) and currently owns a portfolio of 257,000 telecom sites under the Altius brand.

About British Columbia Investment Management Corporation
British Columbia Investment Management Corporation (BCI) is amongst the largest institutional investors in Canada, with C$250.4 billion in gross assets under management as of March 31, 2024. Based in Victoria, British Columbia, with offices in Vancouver, New York, and London, U.K., BCI manages a portfolio of diversified public and private market investments on behalf of its British Columbia public sector clients. BCI’s infrastructure & renewable resources (I&RR) program, valued at approximately C$28.1 billion, invests in tangible long-life assets in the Americas, Europe, and Asia Pacific region, including direct investments in regulated utilities, energy, telecommunications, transportation, timberlands, and agri-businesses. BCI’s I&RR program has a global portfolio with seven active investments in the Asia-Pacific region. The program continues to expand its presence in the region with the addition of this investment in Data Infrastructure Trust.

This is important to keep in mind so I can situate you as to why this is an excellent deal for La Caisse.

Of course, La Caisse is no stranger to investing in telecom tower platforms. 

Recall, for example, Telus sold a 49.9% stake in cell towers to La Caisse last year for $1.26 billion (read my comment here). 

In late 2024, La Caisse inked a deal with OTPP and Spark New Zealand to acquire the remaining share in its mobile towers business, Connexa (OTPP and La Caisse co-own it, read my comment here).

In 2021, La Caisse took a €1.6 billion (30%) stake in American Tower’s European business, ATC Europe, co-owning it with OMERS (read my comment here). 

In short, La Caisse understands tower assets well and has a globally diversified portfolio in these assets.

So, when Brookfield came knocking with this opportunity to acquire a 24% stake in Altius, of course Emmanuel Jaclot and his team at La Caisse took it.

Sam Pollock, CEO of Brookfield’s Infrastructure business and Brookfield Infrastructure Partners, sums it up well:

“Altius has built a scaled, nationwide platform that is in a leading position to meet India’s demand for mobile connectivity and 5G infrastructure. La Caisse’s investment brings another long-term institutional partner to the platform and reflects confidence in the strength of the business. Alongside our partners, we will continue to support Altius’ next phase of growth by deploying our owner-operator capabilities and disciplined, long-term approach to infrastructure investing.” 

For those of you who don't know,  Pollock (featured at the top of this post), is the quiet billionaire who built Brookfield's infrastructure business over 30 years into the powerhouse it has become. 

He actually went to school in Montreal, is a graduate of Lower Canada College |(LCC) and then went on to Queen's University to study commerce and obtained his chartered accountant designation.  

What Sam Pollock and his team built at Brookfield is nothing short of incredible.

If Leo de Bever is known as the "godfather of infrastructure" because he first invested in the asset class when he was at OTPP, Sam Pollock was Mr. Infrastructure, quietly building an empire at Brookfield long before KKR, Blackstone and others got into the asset class.

So, when Sam Pollock calls you with a deal, you pick up the phone and listen carefully; he knows what he's talking about.

With this deal, La Caisse now joins Brookfield, BCI and GIC in owning a piece of India's Altius.  

This is a great way to participate in that country's growing demand for connectivity.

Below, in this episode of Money Control, Munish Seth, Group Managing Director of Altius Telecom Infrastructure Trust, talks with Danish Khan about how India’s data explosion and 5G rollout are creating massive opportunities for digital infrastructure companies. 

Speaking at the India Mobile Congress, he highlights the critical role of towers and data centers in connecting urban and rural India, the policy changes enabling faster network deployment, and how Altius is positioned to support telcos in scaling capacity and coverage across the country (October 2025).

Also, hear from Sam Pollock, CEO of Brookfield Infrastructure Partners, along with other Brookfield leaders, at Brookfield's 2025 Affiliate Investor Day.

CPP Investments kicked off a very busy week. Yesterday, the Fund announced it is expanding its commitment to India's National Investment and Infrastructure Fund: 

Mumbai, INDIA (August 31, 2026) — Canada Pension Plan Investment Board (CPP Investments) today announced a commitment of up to INR 20.7 billion (US$215 million) to NIIF Infrastructure Fund II (Fund II), the second India-focused infrastructure fund managed by the National Investment and Infrastructure Fund Limited (NIIF), India’s sovereign-anchored alternative asset manager.

Building on the success of NIIF’s inaugural infrastructure fund, Fund II will invest in infrastructure assets and platforms across India, with a focus on sectors benefiting from long-term structural trends including urbanization, digitalization and energy transition.

NIIF was established in 2015 as a platform to attract private institutional capital to support the country’s infrastructure growth. CPP Investments and NIIF have a longstanding strategic relationship, with CPP Investments having committed to NIIF’s first infrastructure fund and invested directly in NIIF’s investment management platform. The Fund II commitment further deepens CPP Investments’ partnership with NIIF and establishes a pathway for collaboration across infrastructure opportunities in India.

James Bryce, Managing Director, Head of Infrastructure, CPP Investments, said: “This commitment builds on our existing partnership with NIIF and reflects our confidence in the platform’s ability to originate, build and scale high-quality infrastructure assets. Through Fund II, we see an attractive opportunity to deploy long-term capital alongside a trusted partner while generating solid risk-adjusted returns for CPP contributors and beneficiaries.”

Sanjiv Aggarwal, Managing Director & CEO, NIIF, said: “We are delighted to continue our partnership with CPP Investments through Infrastructure Fund II. Their continued commitment reflects the strength of our relationship and shared conviction in India’s long-term infrastructure opportunity. We look forward to building on this partnership to deploy capital at scale and create high-quality infrastructure businesses that support India’s next phase of growth.”

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About National Investment and Infrastructure Fund (NIIF)
NIIF is India’s sovereign-anchored alternative asset manager, catalysing global capital into sectors and asset classes that play an important role in India’s growth journey. Anchored by the Government of India in partnership with leading global investors, NIIF manages USD 7+ billion in equity capital commitments across four strategies: Infrastructure, Private Markets, Growth Equity and Climate Investments. For more information, please visit www.niifindia.in.

Today, CPP Investments announced Ares closed its fifth Japan logistics real estate development fund at ¥612 billion (US$4 billion), hitting the hard cap:

NEW YORK & TOKYO — (September 1, 2026) — Ares Management Corporation (NYSE: ARES) (“Ares”), a leading global alternative investment manager, announced today the final close of Japan Logistics Development Partners V LP (“JDP V” or the “Fund”), the latest vintage in its Japan-focused logistics real estate development fund series. Raising ¥612 billion (approximately US$4 billion1), including LP equity commitments and GP commitment, JDP V closed at its hard cap and is nearly 50% larger than its predecessor 2021-vintage JDP IV.

The Fund attracted commitments from a diversified global investor base comprising pension funds, sovereign wealth funds, insurance companies, financial institutions and other institutional investors across North America, Asia-Pacific, Europe and the Middle East. Canada Pension Plan Investment Board (“CPP Investments”) is a cornerstone investor in JDP V and has made an equity commitment of ¥150 billion (approximately US$968 million). CPP Investments is a founding investor in the JDP fund series and has participated in every vintage since its inception in 2011.

The fundraise follows Ares’ acquisition of GCP International in March 2025, exceeds the ¥412 billion raised by JDP IV in 2021 and represents Ares Real Estate’s largest closed-end institutional fundraise to date, underscoring the strength of the strategy, the scale of the Japan platform and the benefits of Ares’ integrated global business.

Consistent with its predecessor funds, JDP V will primarily invest in the development of institutional-quality modern logistics facilities across Japan’s key metropolitan markets, including Greater Tokyo, Greater Osaka and Nagoya. With ¥1.7 trillion (approximately US$11 billion) of total investment capacity, the Fund is well positioned to capitalize on the structural tailwinds driving Japan’s logistics market. The Fund’s investments will be developed and operated by Marq Logistics, Ares’ vertically integrated global logistics real estate platform, which manages approximately 120 million square feet in Japan and over 655 million square feet globally, as of June 30, 2026. JDP V has already committed to projects representing approximately ¥450 billion in total investment, alongside a robust proprietary pipeline.

“We are grateful for the strong support from both longstanding and new investors in JDP V,” said Julie Solomon, Partner and Head of Ares Real Estate. “The successful close of our largest closed-end real estate fund to date reflects the strength of the team’s track record, the compelling opportunity set in Japan and the benefits of Ares’ scaled real estate platform. We look forward to continuing to create value for our investors through disciplined execution, local market expertise and global data and insights.”

“Japan remains one of the most attractive logistics markets globally, supported by long-term structural demand for modern supply-chain infrastructure,” said Yoshiyuki Chosa, Partner and Head of Japan Real Estate at Ares. “JDP V’s successful close reflects the confidence investors have placed in our platform and the enduring relationships we have built with customers and local stakeholders over many years. We believe the Fund is well positioned to capitalize on the next phase of logistics development opportunities across Japan.”

“For more than a decade, we have invested in Japan’s logistics sector as part of our global strategy to deploy long-term capital in high-conviction markets and sectors,” said Gilles Chow, Managing Director, Head of Real Estate Asia Pacific, CPP Investments. “We continue to see value in modern logistics infrastructure supported by resilient demand, evolving supply chains and a positive outlook for rental growth. JDP V provides compelling exposure to these themes and aligns with our disciplined approach to building a diversified portfolio that can deliver sustainable, attractive risk-adjusted returns for CPP contributors and beneficiaries.”

Ares Real Estate is one of the most scaled and diversified vertically integrated real estate managers globally, managing approximately US$121 billion in assets as of June 30, 2026. With over 700 total professionals across 38 offices and markets in the Americas, Europe and Asia-Pacific, the team executes equity and debt strategies across property types and spanning the breadth of the risk-return spectrum.

About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders’ long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2026, Ares Management Corporation’s global platform had over $671 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.ares.com.

Also today, CPP Investments also confirmed its investment in JTC following successful shareholder and regulatory approvals:

London, U.K. (September 01, 2026) – Canada Pension Plan Investment Board (“CPP Investments”) alongside global private equity firm Permira, today announced the completion of their previously announced offer to acquire JTC plc (“JTC” or “the Company”), a leading provider of fund, corporate, and private capital administration services headquartered in Jersey.

The acquisition follows the successful shareholder vote at the JTC Court and General Meetings, at which shareholders approved the recommended cash offer and related Scheme of Arrangement. All regulatory approvals have now been received.

JTC is a global provider of high-quality outsourced administration services to fund managers, corporates, and private clients. The Company has delivered over a decade of consistent double-digit organic growth supported by strong client retention, diversified service lines, and a global operating footprint.

“JTC is a high-quality, mission-critical platform operating at the heart of global capital flows. Its consistent organic growth, long-tenured client relationships, and strategic positioning across fund, corporate, and private client services make it an exceptional fit for our long-term investment approach,” said Sam Blaichman, Managing Director and Head of Direct Private Equity at CPP Investments. “We are pleased that shareholders have supported the transaction, and we look forward to partnering with Permira and the JTC management team to support the Company’s next phase of growth while delivering attractive risk-adjusted returns for CPP contributors and beneficiaries.”

CPP Investments’ investment in JTC provides exposure to a resilient and fast-growing sector driven by increasing complexity in financial and regulatory environments; sustained growth in alternative asset classes; and strong secular demand for specialist outsourced administration, particularly in the private trust and fund administration markets.

CPP Investments will invest approximately GBP350 million / C$660 million for an ownership stake of approximately 20%, partnering alongside Permira, which will assume majority control.

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 22 million contributors and beneficiaries. In order to build diversified portfolios of assets, we make investments around the world in public equities, private equities, real estate, infrastructure, fixed income and alternative strategies including in partnership with funds. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2026, the Fund totalled C$863.6 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments. 

Alright, three big investments announced and we haven't reached hump day yet.

Clearly the folks at CPP Investments are busy putting massive capital to work, building on their strategic relationships with top funds or in the case of India, the NIIF. 

I'll be brief with my thoughts. India remains a country of interest for CPP Investments and all of Canada's large pension funds because the structural case for growth remains intact. 

The best way to play that growth right now is investing in toll roads and other infrastructure projects that need to get done. 

India's NIIF invests in India’s growth story, focusing on commercially attractive opportunities in sectors and asset classes that play an important role in shaping a sustainable future. It basically bridges internal and external capital to opportunities, and I'd invite you to read more about this fund here.

Next, Japan logistics, where CPP Investments is taking up almost a fourth (US$968 million) of Ares' US$4 billion Japan Logistics Development Partners V LP (JDP V). That massive commitment makes CPP Investments an anchor investor in this fund, allowing it to capitalize on opportunities in the explosive growth of Japanese logistics properties.

Interestingly, BigGo Finance reports Ares Japan logistics fund closes at ¥612 billion, setting a record for closed-end funds:

• Ares Management's real estate arm has completed fundraising for its fifth Japan logistics development fund, raising ¥612 billion (approximately $3.8 billion), setting the largest fundraising record for a closed-end institutional fund within the division. The fund size represents a nearly 50% increase over the previous vintage launched in 2021, and will target modern logistics facilities in core metropolitan areas including Tokyo, Osaka, and Nagoya. The Canada Pension Plan Investment Board committed ¥150 billion (approximately $938.6 million) as a cornerstone investor. Including leverage, total investment capacity reaches ¥1.7 trillion (approximately $10.6 billion), with assets to be developed and operated by Marq Logistics. CBRE projects that rents for large multi-tenant logistics facilities in Japan's four major metropolitan areas still have room to rise through the end of 2027.

U.S. investment firm Ares Management (NYSE: ARES) announced Tuesday that its real estate division has completed fundraising for its fifth Japan logistics development fund, raising a total of ¥612 billion (approximately $3.8 billion), setting a new record for the largest closed-end institutional fund within the division.

The fund, named Japan Logistics Development Partners V LP, closed at its hard cap target, with a size approximately 50% larger than the previous fund established in 2021. Ares said the capital will be primarily deployed toward the development of modern logistics facilities in Japan's core metropolitan areas, including Tokyo, Osaka, and Nagoya.

Real estate services firm CBRE projected in a report that, driven by sustained growth in demand for modern logistics space across Japan, rents for large multi-tenant logistics facilities in the four major metropolitan areas still have room to rise through the end of 2027.

Fund investors include pension funds, sovereign wealth funds, insurance companies, and financial institutions from North America, Asia-Pacific, Europe, and the Middle East. Among them, the Canada Pension Plan Investment Board (CPP Investments), which has participated in every Ares Japan logistics fund since 2011, once again committed ¥150 billion (approximately $938.6 million) as a cornerstone investor.

Gilles Chow, Head of Asia-Pacific Real Estate at CPP Investments, said: "We continue to see value in modern logistics infrastructure, supported by resilient demand, evolving supply chains, and a positive outlook for rental growth."

Ares noted that the fund's total investment capacity, including leverage, reaches ¥1.7 trillion (approximately $10.6 billion), with approximately ¥450 billion (approximately $2.8 billion) in projects already committed. Assets will be developed and operated by Marq Logistics, Ares's global logistics real estate platform.As of the end of June, Marq Logistics managed approximately 11 million square meters of logistics assets in Japan, with over 60.85 million square meters under management globally.

At the group level, Ares Management had more than $671 billion in assets under management as of June 30, with Ares Real Estate managing approximately $121 billion in assets.

Japan's logistics real estate market has continued to attract international capital in recent years. Rising e-commerce penetration, warehouse demand driven by supply chain restructuring, and limited logistics land supply in major metropolitan areas have kept vacancy rates low in core markets such as Tokyo and Osaka, with rents showing a structural upward trend.

The significant increase in Ares's fundraising size reflects that institutional investors' appetite for Japanese logistics assets remains robust. Compared with the previous fund, this vintage grew by nearly 50%, underscoring that logistics real estate—with its stable cash flow characteristics—continues to be favored by long-term capital amid ongoing uncertainty in the global interest rate environment.

For Japan's logistics market, the ¥1.7 trillion (approximately $10.6 billion) in total investment capacity means substantial development momentum will be injected into core areas such as Tokyo, Osaka, and Nagoya over the coming years, potentially further intensifying competition for prime logistics assets and driving up asset prices. 

This is a huge deal, and again underscores the strategic partnership model that has served CPP Investments so well. 

Ares's global logistics platform, Marq Logistics, is one of the best in the world, and that, along with the strong fundamentals in Japan, is why CPP Investments is a major anchor investor in the Ares Japan Logistics Development Partners V LP (JDP V).

Lastly, the acquisition of JTC plc, a Jersey-based fund and corporate administration services group listed on the London Stock Exchange, by Permira and CPP Investments was finalized two weeks ago, from what I read. 

In its press release, CPP Investments states the "acquisition follows the successful shareholder vote at the JTC Court and General Meetings, at which shareholders approved the recommended cash offer and related Scheme of Arrangement. All regulatory approvals have now been received." 

CPP Investments will invest approximately GBP350 million / C$660 million for an ownership stake of approximately 20%, partnering alongside Permira, which will assume majority control. 

Again, this is a great co-investment alongside a top PE fund, Permira, to acquire a company that is growing fast. 

“JTC is a high-quality, mission-critical platform operating at the heart of global capital flows. Its consistent organic growth, long-tenured client relationships, and strategic positioning across fund, corporate, and private client services make it an exceptional fit for our long-term investment approach,” said Sam Blaichman, Managing Director and Head of Direct Private Equity at CPP Investments.  

Below, Ajay Chaudhary, Chief Executive Officer, NIIF Infrastructure Finance Limited, shares how infrastructure debt funds, long-term refinancing and asset monetisation are helping create a more efficient capital cycle for India’s infrastructure sector.

Next, Ares Co-Head of Real Estate Julie Solomon joins Bloomberg’s Dani Burger and Matthew Miller for a conversation on market trends across the sector and the launch of Marq Logistics, Ares’ new global logistics platform (December, 2025).

Lastly, JTC is a publicly listed, award-winning provider of fund, corporate and private wealth services to institutional and private clients. Find out how Comnexa worked with JTC to deliver an innovative CRM solution on the Salesforce platform (seven years ago).

Matthew Sellers of Mergers and Acquisitions reports Quebec's pension giant exits USI as Aon strikes US$17 billion deal:

Aon has agreed to buy USI Insurance Services from KKR and other shareholders for US$17.0 billion (C$23.6 billion), pushing the broking and consulting giant deeper into the US middle-market territory it first staked out with its purchase of NFP two years ago.

USI has no meaningful Canadian footprint. Aon does: it has operated here since acquiring Toronto brokerage Reed Stenhouse in 1997, and today runs Aon Reed Stenhouse Inc. out of Toronto, with roughly 1,600 staff across offices in eight provinces and a retirement practice advising on more than C$77bn in Canadian plan assets. USI's business will sit almost entirely outside that structure once the deal closes, since it's a purely American operation.

The more direct Canadian connection is on the seller's side. In March 2017, Caisse de dépôt et placement du Québec - the Quebec pension fund known as CDPQ, or La Caisse - teamed up with KKR to buy USI from Onex Corporation for US$4.3bn (C$6.0bn), each taking an equal stake in the Valhalla, New York-based brokerage.

CDPQ helped fund USI's acquisitions and technology spending as the firm roughly doubled in size over the following six years. In 2023, KKR bought back more than half of CDPQ's position for over US$1bn (C$1.4bn) to become USI's largest shareholder; CDPQ's Martin Longchamps described KKR at the time as "a tremendous strategic partner in this investment journey." Monday's announcement names KKR and unspecified "other shareholders" as sellers without mentioning CDPQ directly, so it isn't clear what stake, if any, the fund still held going into this deal.

Either way, the transaction marks the end of an ownership chapter that started with one of Canada's largest institutional investors.

The numbers

KKR has said the sale delivers roughly six times its return on the 2017 investment and 3.4 times its return on capital across the full life of the position. On a net basis, after accounting for roughly US$278m (C$386m) in tax attributes, Aon's purchase price works out to US$16.7bn (C$23.2bn) - about 14.5 times USI's synergised trailing-12-month adjusted EBITDA.

USI is the tenth-largest insurance broker in the US, generating around US$3bn (C$4.2bn) in annual revenue through more than 10,500 employees across nearly 200 US offices. It sells property and casualty coverage, employee benefits, personal risk products and retirement plan advice, largely to businesses too small for the largest brokers but too complex for a local agency.

Under the deal, USI chairman and chief executive Mike Sicard will become president of Aon plc and global chief executive of its middle-market business, reporting directly to Aon chief executive Greg Case and taking a seat on the firm's executive committee. Case said the deal would make Aon "the premier US middle-market platform," and pointed to what he calls the firm's data and analytics edge over rivals. He was more direct in an interview with the Wall Street Journal: "We see this having a financial impact almost immediately."

Aon expects the combination to generate about US$395m (C$549m) a year in run-rate synergies once fully integrated, and expects it to add to adjusted earnings per share from 2028. The firm plans to fund the entire purchase with new debt and says it intends to hold its current credit ratings - Baa2 at Moody's, A- at S&P - by pausing share buybacks while that debt gets paid down. BofA Securities and Citi advised Aon; KKR worked with Goldman Sachs, Insurance Advisory Partners and Morgan Stanley. The deal is expected to close in the fourth quarter of 2026, subject to regulatory approval.

A second middle-market deal in two years

The move follows the same script as Aon's purchase of NFP, the middle-market broker it bought from Madison Dearborn Partners and HPS Investment Partners for a deal valued at roughly US$13.4bn (C$18.6bn) when it was announced in December 2023. That deal changed Aon's position among the world's largest brokers, and Aon has kept adjusting the pieces since, including selling most of NFP's wealth management arm back to Madison Dearborn last year for roughly US$2.7bn (C$3.8bn).

What Aon kept from NFP says something about what it wants from USI too: the corporate risk, employee benefits and institutional retirement business that sits at the centre of a middle-market client's balance sheet, rather than managing individual investors' wealth. Once the USI deal closes, Sicard will be responsible for combining its operations with NFP and Aon's existing middle-market unit.

What this means for competing brokers

The deal reshuffles a hierarchy that hasn't moved much at the top in years. Aon currently ranks second among US brokers with US$16.99bn (C$23.6bn) in 2025 brokerage revenue, behind Marsh McLennan's US$26.66bn (C$37.1bn), according to brokerage rankings; USI, at US$2.89bn (C$4.0bn) in 2025 revenue and nearly 11,000 staff, ranked tenth. Adding USI's revenue to Aon's puts more distance between it and Arthur J. Gallagher in third - a broker that has been closing ground of its own, having completed its US$13.45bn (C$18.7bn) purchase of AssuredPartners in August 2025.

Public brokers using their stock to buy scale, rather than growing it themselves, has been the story of the US sector for two years: Marsh McLennan bought McGriff Insurance Services, Brown & Brown paid US$9.83bn (C$13.7bn) for Accession Risk Management, and now Aon and Gallagher have each done a second mega-deal.

Canada's brokerage market has been consolidating too, though along different lines. Navacord and Acera Insurance completed a merger in February, creating the country's largest privately held brokerage with roughly C$7.2bn in combined insurance and employee-benefits premium. The mechanics are different - no public buyer, no stock currency, just two employee-owned firms deciding to merge - but the underlying pressure to get bigger looks familiar.

Aon reported adjusted second-quarter earnings of US$3.81 (C$5.30) per share on July 29, ahead of analyst estimates, and its stock had a market value of roughly US$75bn (C$104.3bn) as of the Friday before the deal was announced. The announcement also comes weeks after Aon's chief financial officer, Edmund Reese, stepped down; the company said he'll serve as a senior adviser to Case through August 2027. 

Before I give you my thoughts, let's go back to 2017 when Financier Worldwide reported that KKR and CDPQ bought USI Insurance Services for US$4.3billion:

Private equity (PE) firm KKR and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) have announced their intention to jointly acquire USI Insurance Services (USI) from Onex Corporation and its affiliates in a transaction which values the insurance brokerage at $4.3bn.

As partners with equal ownership, KKR and CDPQ – both of which have a strong track record in the financial services and insurance-related sectors and have been longstanding partners in multiple investments over the years – are looking to pursue attractive investment opportunities in high quality businesses with a longer duration and a lower risk profile in order to support strong management teams and facilitate long-term strategic business building.

With more than 4400 professionals operating out of 140 local offices throughout the US, USI delivers property and casualty, employee benefits, personal risk and retirement solutions. USI has become an industry leader by attracting best-in-class industry talent with a long history of deep and continuing investment in local communities.

The investment to acquire USI, which has over $1bn in revenues and operates out of 140 local offices serving every state, will primarily be made through KKR and CDPQ’s core private equity partnership, which includes funds from KKR’s balance sheet and from CDPQ’s pool of capital.

“USI is a fantastic company and is uniquely positioned to help address the risk management, insurance and employee benefits-related needs of small and medium-sized business owners,” said Tagar Olson, head of KKR’s financial services investing practice. “We look forward to working with CDPQ in helping management achieve its long-term vision to grow the business through accelerated investments in USI’s people, technology and solutions.”

A leading global investment firm that manages investments across multiple asset classes including PE, energy, infrastructure, real estate, credit and hedge funds, KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. Moreover, KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business.

Mr Olson continued: “Our successful experience in the insurance and benefits brokerage industry, coupled with the impressive track record of the USI management team, give us confidence in our ability to generate compelling returns while growing the business over the long-term.”

KKR’s co-investor, CDPQ, is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As one of Canada’s leading institutional fund managers (with over $30bn of assets under management), CDPQ invests globally in major financial markets, PE, infrastructure and real estate. Additionally, CDPQ’s private equity team has significant expertise both as a direct investor in companies and as a partner in investment funds.

“CDPQ and KKR are co-leading this investment and leveraging their respective expertise in the sector to support USI’s world-class management as it pursues its strategic plan for long-term growth,” said Christian Puscasiu, co-head of PE direct investing at CDPQ. “Our partnership was established to implement both firms’ patient, disciplined and collaborative investment approach. USI operates in a resilient sector characterized by stable, long-term returns and serves small and medium-sized businesses, which are the cornerstone of the US economy.”

The acquisition of USI by KKR and CDPQ is anticipated to close by the end of the second quarter of 2017 and is subject to customary conditions, including regulatory approvals.

“We are passionately committed to continuing and accelerating USI’s growth and investment as a leader in our industry,” said Michael J. Sicard, chairman and chief executive of USI. “We are excited to work with our new partners at KKR and CDPQ, and want to thank our partners at Onex for the tremendous support they provided to USI.” 

Now, my quick thoughts on this deal. The first article above states KKR said the sale of  USI Insurance Services to Aon for US$17 billion delivers roughly six times its return on the 2017 investment and 3.4 times its return on capital across the full life of the position.

In 2023, KKR bought back more than half of CDPQ's position for over US$1bn (C$1.4bn) to become USI's largest shareholder. At the time, La Caisse's Head of Private Equity, Martin Longchamps, described KKR as "a tremendous strategic partner in this investment journey."   

KKR delivered outstanding results on USI Insurance Services and the man who originated that deal back in 2017 was Tagar Olson (featured at the top of this post):  

Tagar Olson serves as a non-executive board member representing Integrum, Stout’s investment partner.

Tagar is a Founder of Integrum and Chairman of the firm’s Investment Committee.

Tagar has over twenty years of investment and acquisition experience, most recently during an 18-year career at KKR, where he was involved in numerous transactions valued at more than $50 billion in the aggregate.

Tagar joined KKR in 2002 and led the firm’s Financial Services industry vertical. At KKR, he participated as a member of the firm’s Investment Committee and Portfolio Management Committee within its Americas Private Equity business. He also served as a member of KKR’s Inclusion & Diversity Committee and its Investments, Markets and Distribution Committee, which was KKR’s most senior governance body.

During his time leading KKR’s Financial Services practice, KKR was one of the most active private equity acquirers of financial services and business services companies. Tagar was involved in KKR investments including Alliant Insurance Services, First Data (now Fiserv), Focus Financial, Mr. Cooper Group, Nephila, PURE, Resolution, Santander Consumer USA, Sedgwick and USI Insurance Services. Tagar also led KKR’s Hospitality & Leisure sector, where he was involved with KKR’s investments in Apple Leisure Group, KSL Recreation, Hotel del Coronado and La Costa Resort & Spa.

Prior to joining KKR, Tagar was with Evercore Partners, where he was involved in a number of private equity transactions and mergers and acquisitions.

Tagar currently sits on the boards of USI Insurance Services, Evertree Insurance, Mr. Cooper Group, Program Productions, and Strategic Risk Solutions. He is co-founder of the DHPS Foundation, a charitable organization dedicated to the research and treatment of rare genetic diseases. He holds a B.S. and B.A.S., summa cum laude, from the University of Pennsylvania. 

This is why La Caisse co-invested a large sum with KKR to acquire USI Insurance Services back in 2017, Tagar Olson brought a great investment to the table.

Had La Caisse kept its original position till now, it would have made even more money, but for portfolio reasons, they divested partially out of USI in 2023 and kept a little less than half their original position.

Still, a great investment in the burgeoning US insurance industry and now Aon will expand its operations with this strategic acquisition.

Again, this is why you want to invest alongside the best private equity funds: you gain scale, competence and fantastic long-term performance. 

Below, in this video, World trends breaks down the deal, including KKR’s approximately 6X return, Aon’s projected $395 million in synergies, the integration of more than 10,000 employees, potential regulatory scrutiny, and the expected earnings timeline through 2028.

Also, Bloomberg Intelligence reports KKR just scored $3.3 billion windfall on the sale of USI.

Lastly, TechStock reports Aon is nearing a $17 billion acquisition of USI Insurance—valuing USI at 5.7 times its annual revenue. This is nearly 23% of Aon’s total equity value. 

Why does it matter now? Analysts project Aon’s EPS to surge in the coming years, with an average price target 14% above current levels. But risks loom: debt funding, integration costs, and regulatory hurdles could impact earnings. Will this bold move accelerate Aon’s growth or mark an expensive gamble? Watch to get the edge before Monday’s market reaction.