Created in 2010, the infrastructure portfolio of Caisse de dépôt et placement du Québec (CDPQ) was the Canadian institutional investor’s fastest growing asset class between 2018 and 2023, reaching CAD59.8bn (€39.6bn) in assets under management. The group invests directly in companies involved in various types of infrastructure in both developed and targeted growth markets. Its objective is to focus on tangible assets that generate stable and predictable investment income over the long term while protecting against inflation.

CDPQ’s infrastructure portfolio currently consists of almost 40 businesses in 15 countries, featuring high-quality companies that are contributing to the fight against climate change and thus playing a major role in reducing the carbon intensity of its total portfolio, which is down by 59% since 2017. Holdings include ports, airports, highways, wind farms, public transit systems and energy transportation and distribution networks, among others.

Key investments in 2023 include:

• CAD848m for an additional 15% of Transportadora Associada de Gás, which owns and manages an important portion of Brazil’s natural gas transportation assets, spanning over 4,500 kilometres and 10 states. CDPQ’s stake is now 50%. 
• CAD108.5m for the acquisition of Integração Transmissora de Energia, a strategic power transmission network spanning 695 kilometres in the states of Tocantins and Goiás in central Brazil. It marks CDPQ’s second power transmission investment in Latin America in the past 18 months. 
• CAD178m jointly with the Clean Energy Finance Corporation, an Australian government-owned green bank, to launch a strategic partnership focused on agricultural land in Australia, with a first acquisition of a farm dedicated to row crops located in New South Wales.  
• Commitments to Westervelt Ecological Services, a US firm founded in 2006 to deliver large-scale science-driven restoration projects to offset the impact of developments and climate change. WES manages over 50 projects across nine states, protecting nearly 35,000 acres of wetland, streams, and vulnerable species habitats. 

STRATEGIC TAKEAWAYS

APG demonstrates a strategic approach to private market direct investments in the energy sector, focusing on sustainability, technological innovation, and long-term profitability. Each project underlines APG’s role in shaping market trends, enhancing asset value and contributing to the global energy transition. Key examples include a 33% share in a portfolio of 26 solar and battery storage projects across six states and four major power markets in the US; investments in Driveco, a frontrunner in the French electric vehicle charging market that operates approximately 7,900 charging points in France and Belgium; a stake in leading Dutch energy infrastructure service provider, Kenter, which offers transformative solutions in transformer and metering services that are essential for supporting the energy transition; and a holding in Småkraft, a leading operator of small-scale hydropower plants in rural Norway and Sweden.