Nina Kienle and Adria Calatayud of the Wall Street Journal report Veolia to Buy CDPQ's Stake in Water Technologies and Solutions for $1.75 Billion:

Veolia said it agreed to buy Caisse de Depot et Placement du Quebec's minority stake in its Water Technologies and Solutions subsidiary for $1.75 billion, taking full ownership.

The French utility and resource-management company said Wednesday that the acquisition of the investment group's 30% stake will allow it to achieve cost savings and accelerate earnings growth at the business.

It now aims to achieve an annual growth rate in earnings before interest, taxes, depreciation and amortization of at least 10% for its water-technologies division over the 2023-27 period, it said.

The business generated an Ebitda of 612 million euros ($695.8 million) in 2024 with an organic growth rate of 16%. Sales in the first quarter of 2025 were stable on year.

The deal, due to be completed by the end of June, is expected to lead to annual cost synergies of 90 million euros by 2027, the company said.

This in turn should serve as an important new growth driver in achieving its medium-term Ebitda target, RBC Capital Markets analysts said in a note to clients.

Whilst additional synergies are a positive, Jefferies analyst Yi Shu Ho notes that the transaction is part of Veolia's GreenUp plan and not incremental. "Market will likely be concerned over balance sheet headroom," he said.

JPMorgan analysts find the acquisition to be strategic, but note results for the first quarter were only neutral.

The company posted sales for the three-month period that fell to 11.51 billion euros from 11.57 billion euros the prior-year period. The figure missed analysts' expectation of 11.62 billion euros, according to consensus estimates provided by Visible Alpha.

Earnings before interest, taxes, depreciation and amortization, however, rose to 1.70 billion euros from 1.62 billion euros with a margin expansion of 14.7% from 14.1%, it said.

Current earnings before interest and taxes also rose, amounting to 915 million euros, up from 843 million euros, it added.

Veolia backed its guidance for the year, targeting organic Ebitda growth at around 5% to 6% and current net income growth of around 9%, it said.

Shares trade 2.5% lower at 31.63 euros.

Dimitri Rhodes and Etienne Breban of Reuters also report Veolia to take full ownership of water management unit in $1.75 billion deal, gets $750 million in new contracts:

May 7 (Reuters) - French group Veolia said on Wednesday it will buy the 30% of shares in Water Technologies and Solutions (WT&S) that it does not already own from Quebec Deposit and Investment Fund (CDPQ) for $1.75 billion.

The waste and water management company also announced $750 million in three new contracts to supply water to clients in the energy and semiconductor sectors. Veolia also estimated that gaining full control of WT&S will help it extract 90 million euros ($102.3 million) of additional cost synergies by 2027. "This (deal) will allow us to take full control of all our water technology branches, and thus deliver the full potential of this activity, which is at the heart of our strategic business," CEO Estelle Brachlianoff told Reuters. Over half of WT&S's business is in North America, the CEO added in a press call, consistent with Veolia's plan to strengthen its presence in water technologies activities and in the United States, both identified as priority growth boosters. It expects the WT&S deal to close by the end of June. Veolia said the new contracts included a $550 million deal with a very large microelectronics factory in the American Midwest, and smaller contracts in San Francisco, Brazil and the UAE. "By 2027, we want to increase our turnover in the United States by 50%, and we want to double the size of our business in the United States by 2030," Brachlianoff said in the press call. Veolia reported 20% of group sales in France, 60% of group sales in Europe, including France, and 40% of group sales outside Europe, including $5 billion in the U.S. in 2024, the CEO said. The company posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.7 billion euros for the first quarter, up from 1.62 billion euros a year ago. It also reiterated its guidance for 2025. ($1 = 0.8814 euros)

Veolia issued a press release stating it has acquired CDPQ’s 30% stake in Water Technologies and Solutions, achieving full ownership to accelerate value creation:

Veolia has signed an agreement with CDPQ for the acquisition of its 30% stake in Veolia’s subsidiary Water Technologies and Solutions (“WTS”), allowing Veolia to achieve full ownership of WTS, enabling to unlock more value potential, simplify further its structure and extract additional run-rate cost synergies of ~€90m.

This acquisition is a logical step in the deployment of Veolia’s GreenUp strategic roadmap, with an efficient capital allocation to strengthen the Group’s anchoring in Water technologies activities and in the United States, both identified as priority growth “boosters”.

The acquisition of CDPQ’s minority interests will further strengthen Veolia's unique positioning as a global leader in Water Technologies. The Group is perfectly positioned to take advantage of the growing demand for innovative water treatment technologies and solutions, fueled by macro-trends such as water scarcity, adaptation to climate change, health concerns and the development of strategic industries such as semiconductors, pharmaceuticals and data centers.

The acquisition of the remaining 30% of Veolia’s subsidiary WTS will allow full operational control, enabling it to enhance operational performance and seize all opportunities for development and innovation, through a complete integration process. Following the acquisition, the Group will be able to unlock additional ~€90m of run-rate cost synergies by 2027. Those synergies are already well-identified and benefit from a very low execution risk, given the deep and intimate knowledge of the asset and Veolia’s proven track-record in synergies extraction. The acquisition is expected to be accretive from 2026 and will contribute to improve Group ROCE.

The purchase price for the acquisition will be $1.75bn (~€1.5bn), corresponding to ~11x EV/post-synergies 2025e EBITDA. Post-transaction, Veolia will still maintain headroom compared to its Net Debt / EBITDA target of 3x, allowing the Group to retain strategic flexibility to continue to deploy its GreenUp strategic plan.

Veolia confirms all 2025 guidance and GreenUp targets previously communicated both at Group level and at Water Technologies level, and now aims to achieve an EBITDA CAGR of at least +10%(1) over the 2023-2027 period for its Water Technologies division.

“This acquisition marks a pivotal step in unlocking the full value potential of Water Technologies, a growth booster identified as a priority in our GreenUp strategic plan, and a segment where we are already a market leader. Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities. This move is especially crucial given the urgent and rapidly evolving needs of the market, allowing us to respond faster and more effectively to emerging opportunities and challenges," said Estelle Brachlianoff, Veolia’s Chief Executive Officer.

“We are proud of WTS’ achievements since our investment in 2017, as it has grown into a global market leader in water technologies. Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation. We are grateful for the close collaboration with the management teams at WTS and Veolia, and we wish them every success in this next chapter," said Albrecht von Alvensleben, Managing Director, Head of Private Equity Europe at CDPQ.

The closing of the transaction is expected by the end of June 2025.

Veolia Water Technologies segment

• In FY2024, Veolia Water Technologies segment achieved revenues of €4.97bn (41% North America, 25% Europe, 13% Asia Pacific, 13% Africa Middle-East and 8% Latin America) and EBITDA of €612M. The business serves over 8,000 clients in 44 countries, with 38 technological sites and 11 dedicated R&I laboratories.
• Veolia Water Technologies activities include both Veolia WT, 100% owned and Water Technologies and Solutions “WTS” subsidiary, 70% Veolia-30% CDPQ.

Water Technologies and Solutions “WTS” subsidiary;

• WTS was formed as a 70%-30% joint venture between Suez and CDPQ in 2017, before becoming a subsidiary of Veolia following the Veolia–Suez merger in 2022, with CDPQ keeping its 30% minority stake. In FY2024, WTS achieved revenues of €3.3bn ($3.6bn) and EBITDA of €472M ($511M).

ABOUT VEOLIA

Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with 215,000 employees, the Group designs and deploys useful, practical solutions for the management of water, waste and energy that are contributing to a radical turnaround of the current situation. Through its three complementary activities, Veolia helps to develop access to resources, to preserve available resources and to renew them. In 2024, the Veolia group provided 111 million inhabitants with drinking water and 98 million with sanitation, produced 42 million megawatt hours of energy and treated 65 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 44.7 billion euros in 2024.

It is worth going back to the 2017 press release when CDPQ teamed up with SUEZ in a joint venture to acquire GE Water:

Today Caisse de dépôt et placement du Québec and SUEZ announced that they have entered into an agreement with General Electric Company to acquire its Water & Process Technologies business (“GE Water”), a leading provider of water treatment solutions. The transaction values GE Water at approximately USD 3.4 billion. As part of the transaction, CDPQ will invest over USD 700 million for a 30% stake. SUEZ will have a 70% stake and will contribute its industrial water business to GE Water to create a new self-standing business unit within SUEZ encompassing all industrial water activities with a global focus.

With operations in 130 countries and over 7,500 employees, GE Water is a global leader in the provision of equipment, chemicals and services for the treatment of water and wastewater. In order to address its industrial clients’ increasingly complex needs, GE Water invests heavily in research and development of unique solutions. Its innovative technology has made it one of the most sophisticated players in its industry.

Long-term demand for water treatment equipment, chemicals and services are expected to remain strong both as a consequence of growing water scarcity and the impact of global warming on the water cycle. Furthermore, there are increasing global concerns related to industrial wastewater and its impact on the environment which make advanced treatment of water an absolute necessity. In this context, CDPQ is looking to increase its exposure to the water sector and views this investment as a way to generate long-term value.

“With an emphasis on industrial applications, GE Water has positioned itself as a key player in the water treatment industry thanks to its cutting-edge technology and a management team that has proven itself highly skilled at leveraging that competitive advantage,” said Michael Sabia, President and Chief Executive Officer at CDPQ. “Operating in a core industry, GE Water has built a premier business with recurring revenues and a high-quality and diversified customer base. This investment is therefore highly aligned with CDPQ’s long-term vision and its strategy of increasing its emphasis on stable assets anchored in the real economy, alongside a world-class operator such as SUEZ.”

Jean-Louis Chaussade, CEO of SUEZ, said: “I am very proud to announce the acquisition of GE Water, which will accelerate the implementation of SUEZ’ strategy by strengthening its position in the promising and fast-growing industrial water market. This combination will create further value for both our clients and shareholders. Clients will benefit from the combined knowledge, expertise, geographic footprint and leading edge products and services available. The transaction will also deliver strong value to our shareholders by enhancing SUEZ’ profitable growth profile. I look forward to integrating GE Water’s highly skilled staff to our teams to form an unparalleled industrial water platform. We are also thrilled to join forces with CDPQ, a financial investor which shares our long term vision for our business.”

SUEZ is a French, publicly-listed industrial services and solutions company focused on water optimization and waste recovery. By teaming with SUEZ, CDPQ gains a strong partner which can help accelerate the growth and success of GE Water.

In 2017, GE Water was rebranded as SUEZ Water Technologies & Solutions after it was acquired and SUEZ and Veolia finally merged in 2022 and the company became known as Water Technologies and Solutions.

CDPQ acquired a 30% stake for $700 million and exited selling it to Veolia for $1.75 billion (all USD figures) after eight years.

The key here is what Veolia’s CEO Estelle Brachlianoff and CDPQ's Managing Director, Head of Private Equity Europe lbrecht von Alvensleben stated in the press release:

“This acquisition marks a pivotal step in unlocking the full value potential of Water Technologies, a growth booster identified as a priority in our GreenUp strategic plan, and a segment where we are already a market leader. Full ownership will enable us to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with strategic priorities. This move is especially crucial given the urgent and rapidly evolving needs of the market, allowing us to respond faster and more effectively to emerging opportunities and challenges," said Estelle Brachlianoff, Veolia’s Chief Executive Officer.

“We are proud of WTS’ achievements since our investment in 2017, as it has grown into a global market leader in water technologies. Through our partnership, we helped strengthen the company’s foundations and position it for sustained growth and long-term value creation. We are grateful for the close collaboration with the management teams at WTS and Veolia, and we wish them every success in this next chapter," said Albrecht von Alvensleben, Managing Director, Head of Private Equity Europe at CDPQ.

Apart from cost savings, full ownership will enable Veolia to accelerate growth, enhance operational efficiency and synergies as well as deepen the alignment with its Green Up strategic plan.

CDPQ exits at a nice return and can redeploy that capital elsewhere.

This is what I call a successful joint venture that went well for all parties.

In other related CDPQ news, La Presse reports that CEO Charles Emond appeared before the Quebec National Assembly to state there are no plans to export the REM to the United States.

He also said the Azure India bribery scandal that plagued the organization last year was isolated to three former employees and that the toll road projects in India are profitable. 

You can read the entire article here and I will just say that CDPQ needs to focus on the REM here to make sure it addresses all operational glitches as there are too many issues that impact service.

As far as the India bribery scandal, well, let's hope it is an isolated case that never repeats itself ever again.

Charles Emond stated this at the National Assembly: "There is no perfect system for detecting the behavior of three former employees who decided to act through collusion outside of the Caisse's systems." 

That may be true but there should be checks and balances all the time to detect and prevent fraud.

To be blunt, no pension fund can afford to be embroiled in any bribery scandal anywhere, especially a global investor like CDPQ.

Below, Veolia CEO Estelle Brachlianoff celebrates 170 years of innovation (video uses AI as you will notice). Very impressive company cleaning water all over the world.

Harrisson Connery of PERE reports that Ares’ Arougheti sees tariffs will boost real estate values, transaction activity:

As tariff-related uncertainty casts a shadow over global property markets, Ares Management chief executive Michael Arougheti said his firm’s real estate strategies stand to benefit from the disruption. 

“We continue to believe that this is an opportune time for continued growth in our real estate business,” said Arougheti on the Los Angeles-based manager’s first-quarter earnings call this week. “Tariffs should drive up construction costs, which might constrain supply in markets that are already supply-constrained. This, coupled with a decrease in cost of capital and lower interest rates should improve values of real estate held and spur transaction activity.”  

Arougheti’s comments came as Ares reported $3.9 billion in fundraising for its real estate strategies in the quarter, up from just $400 million for the same period last year.  

It was Ares’ first quarterly update since finalizing its $3.7 billion acquisition of Singapore-based logistics and data center specialist GLP Capital Partners’ non-China business, and Ares’ revised portfolio metrics reflect the scale of that transaction. Its real assets platform now manages $124.2 billion in assets, Ares reported, up from $75.3 billion at the end of 2024. 

The GLP deal significantly boosted Ares’ regional footprint as well, particularly in Japan and Southeast Asia, and the manager’s first Japanese data center development fund attracted $1.5 billion in commitments in the first quarter, Arougheti said, adding that he anticipates a final close “in the near term.”  

Ares’ American real estate equity real estate funds produced returns of 1.8 percent for the quarter and 7.3 percent over the past 12 months, and its European real estate equity strategies produced returns of 0.2 percent last quarter and 1 percent over the prior year. It deployed $3.3 billion into real estate assets in the quarter, up from $500 million in the first quarter of 2024. 

Arougheti’s optimism stands in contrast to some of the prevailing concerns held by other private real estate managers that tariffs will bring further pain to the industry. Investors and managers alike have told PERE that Trump’s on-again, off-again policies would make underwriting all but impossible in the near term. The potential for prolonged transaction paralysis helped contribute to a record secondaries fundraise for New York-based StepStone Group last week, according to Jeff Giller, the manager’s head of real estate.   

Arougheti said the macro-environment has not impacted his outlook on logistics and data center assets, for which he believes there is strong demand, and added that US tariffs could drive more volume towards Ares’ distribution businesses in Japan.  

“There is a modest shift of investor interest and appetite away from the US markets,” he said. “So I could envision that if we continue to be in that type of environment, that the opportunity to offer non-US product in Japan and in our European distribution business could actually catch a stronger bid here and be a net beneficiary.”

Ares's co-founder Michael Arougheti is optimistic on real estate, private equity and private credit and believes his firm stands to benefit from any severe dislocation.

Speaking from the Milken Institute conference, he also stated that tariffs are unlikely to trigger a sharp uptick in private-equity-owned companies failing to repay their loans.

Things are going very well for Ares Management. Silas Sloan of Secondaries Investor reports the firm is looking to close its third infrastructure fund and its secondaries fund is attracting a lot of capital too:

Ares Management is looking to close its third infrastructure fund soon with its secondaries business continuing to “generate significant investor interest”, chief executive Michael Arougheti said on the firm’s recent earnings call.

Ares Secondaries Infrastructure Solutions III crossed $2 billion in total commitments, doubling its predecessor, Arougheti said during the firm’s Q1 2025 earnings call on 5 May. The fund is expected to hold a final close this summer.

Arougheti’s comments mean the fund launched in 2023 has also hit its target, which is $2 billion, according to Secondaries Investor data. The infrastructure fund collected about $400 million in the first quarter, according to slides prepared for the earnings call.

In addition to the infrastructure fund, Ares Credit Secondaries I raised $475 million in Q1 and $700 million in April, bringing the total equity commitments in the strategy to $3 billion and exceeding the fund’s target, Arougheti said on the call.

Ares raised about $2.3 billion in Q1 across PE, credit, infrastructure and real estate. Overall, the firm raised more than $20 billion in the first three months of the year, which Arougheti said was the strongest first quarter of fundraising ever for the firm.

“As we think about fundraising for 2025 and how it could be impacted by the current market uncertainty, we believe that we’re well-positioned due to the strength in the institutional channel and the global diversity of our investor base,” Arougheti said on the call. “We have deep relationships with our LPs who tend to be repeat investors across our funds and strategies as they seek to consolidate with key relationships.”

Fundraising got off to a blazing start in 2025, collecting a total of $50.7 billion in Q1, according to Secondaries Investor data. It was a massive step up from the $10 billion raised in Q1 2024.

However, there’s more than meets the eye when it comes to that Q1 total, as nearly 60 percent came from Ardian’s $30 billion close on Ardian Secondary Fund IX in January. Without the behemoth fund, Q1 2025 secondaries fundraising would have seen its fourth-largest tally for total closed commitments across the first three months of the year since 2020.

Ares is a strategic partner to Canada's large pension funds and institutional funds all over the world. Therefore I would pay attention to what this firm is doing and what its CEO and co-founder is saying. Below, Ares Management CEO and co-founder Michael Arougheti discussed the market impact of trade tariffs, investment in China markets, investors taking shelter in credit markets and where he sees “massive opportunity” for private equity. Arougheti spoke with Sonali Basak on the sidelines of The Milken Institute Global Conference in Beverly Hills, California.

Also, Michael Arougheti joins CNBC's 'Squawk on the Street' to discuss macro outlooks, growth expectations for Ares, and more.

Lastly, Blackstone President Jon Gray says he expects some countries will strike trade deals with the US “fairly soon,” and the effective tariff rate will be around 10%. Gray says the uncertainty around a trade war is likely to slow down GDP growth. He also talks about the AI revolution, real estate and inflation in the US. He speaks to Bloomberg's Sonali Basak at the Milken Conference. 

All great interviews, worth listening to their views.

CDPQ's Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability, Marc-André Blanchard, received the 2025 Testimonial Dinner Award on April 24 in Toronto. 

In his acceptance speech, Mr. Blanchard reflected on the urgent need for engagement, trust and partnership in solving the most pressing challenges of our time.

The former diplomat shared insights from his time at the United Nations, and called for public institutions to refocus on results, for silos to be broken across sectors and for trust to be rebuilt — drop by drop — through collaboration and engaged action:

I want to begin with just one word — gratitude, but gratitude in three parts. First, the five distinguished Canadians with whom I have the privilege of being honored tonight, they each inspire me.

Anil Arora. Anil is a legend amongst the global statistician community, I saw it with my own eyes at the UN.

The honourable Elizabeth Dowdeswell, a life dedicated to building and strengthening resilient local communities in Canada and around the world.

Chief Crystal Smith, your focus on economic reconciliation and building innovative partnerships is exactly what we need, not only for our national reconciliation, but also globally, for a more sustainable world.

Steve Paikin, last week’s debate reminded us how lucky we have been to have had you as a pillar in journalism and in our country for so long.

And Alfred, well, your optimism and generosity and focus on action will bring all of us somewhere else.

Second, gratitude to this room, to this community, to the Public Policy Forum. And allow me a special thanks, that’s never easy to do, to my wife Monique, merci.

Our sons, Adrian and Laurent, who are here tonight. This is my family. (In French: I would never have been here without you. You are my north star.) Thanks also to all of my friends here and my former colleagues, whether from McCarthy or from the public service or at CDPQ, or all of the organizations, my alma mater. Thank you. I’ve been so lucky in my life that my life has crossed your paths, and thank you for being here.

And third, I’m grateful for the opportunity to share some of my thoughts. And don’t worry, they’re not that long. It’s a gift, and I’m deeply thankful to all of you for giving me the reason and the space to pause, reflect and share.

The first thing I recognize is this — despite our deeply troubling times, like most of you, I’m certain I stand before you as someone who remains deeply, deeply hopeful in our future. To state the obvious, the challenges that brought me into public policy and public service, the kind that shaped my purpose, are today even more complex, more urgent and more intertwined than ever before. Never has the distance between our ideals and our actions been so radically exposed, so consequential, and so necessary to bridge.

Well, I happen to know a thing or two about idealism. You know, after all, I served in the halls of the United Nations for nearly five years. And when I arrived in the spring of 2016 there was so much hope. The world had just adopted the sustainable development goals and the Paris Accord, the world would finally get to work on two of its biggest and most pressing challenges — inequality and climate change. Then, within a few months, Brexit, President Trump, a few years later, the pandemic, Syria, Ukraine.

So, I’ve lived through the great declarations and stirring speeches. I’ve also lived through the disappointments left by our institutions’ inability to deliver what is being promised to citizens. This disappointment is felt in Canada and almost everywhere else in the world. Throughout the world, it has eroded the trust in our democratic institutions. And globally, the multilateral institutions so dear to Canada are being sidestepped without much reaction by the populations.

A friend of mine, Baroness Valerie Amos, the Master of University College of Oxford, recently said people need to see the difference that institutions make in their lives, and they need to have a mechanism that enables them to have an influence on those institutions. So how do we get our institutions to deliver for the people on the ground? How do we get from our idealism and our values to results?

Well, to me, a big part of the answer is about engagement. We need results. To get results, we need people invested in the kind of change they want to see. I can think of three rules of engagement that if applied, would deliver results faster, and of scale.

First, as I mentioned, engagement must be focused on results. Populism is not an anomaly. It’s a symptom, a warning sign of deeper democratic fatigue. Populism can only thrive in the void left by a lack of real results, in the absence of meaningful, visible change in people’s lives. To succeed in delivering faster, we need to remember that excellence in public policy does not require perfection. It requires progress, delivery and results.

Engagement, therefore, must be redefined, not as dialog alone, or even worse, a process, but as a deliberate, measurable pursuit of relentless impact.

Second, engagement must break down the silos and lead to innovative partnerships of the kind we heard just before. Well, this is tougher than it sounds. And to my dear friends of the public sector, my public sector colleagues, let me tell you a well-kept secret of the private sector. The private sector has silos, too.

In today’s world, with this climate, this economy, this global uncertainty, the real breakthroughs, the ones that will shape the next generation, will come when both sectors, public and private, start truly collaborating.

Well, let me brag a little bit. So I promise, I’ve been a citizen of Toronto, I promise not to make any explicit comparison with the Eglinton line here in Toronto. But I can offer no better example than the REM (Réseau express métropolitain) in Montreal, a very innovative partnership between CDPQ and three levels of government, various Crown corporations and the private sector, involved in delivering in a very short time — started the construction in 2018, first line going up in 2023 at reasonable cost — 67 kilometers of light rail train. If there had been no trust, there would have been no REM.

Which leads me to my third and final rule. Engagement must be built and rebuilt on trust. They say that trust is earned in drops and lost in buckets. And in recent years, here at home and around the world, we’ve watched too many of those buckets spill over. There is no shortcut to trust. There is only the steady, honest, often uncelebrated, work of listening, of engaging with people who disagree with us, not thinking we know better, of standing in someone else’s shoes, of doing the right thing and the right thing is often not theoretical perfection, but a good old Canadian compromise, even when it’s hard. Drip by drip. Act by act.

As we look to the future, please remember this. Every grand plan, every vision to reinvigorate our democracy, to renew our economy or realign our world will demand deep collaboration and even deeper trust. Without that trust, we’re left with talk, with the illusion of progress and none of the results. The reality is that listening builds trust and relationships. Trust and relationships accelerate action. And engagement leads to impact.

So thank you from the bottom of my heart for this honour, really. And let’s never forget that there is no challenge that we cannot overcome. After all, together we’ve built the best country in the world.

Vive le Canada et merci beaucoup.

Great speech by Marc-André Blanchard, eloquent, short, optimistic, striking the right balance between idealism and realism.

He brings the example of the REM where three levels of government were involved and nothing would have gotten done if there was no trust. 

He correctly notes:

“In today’s world, with this climate, this economy, this global uncertainty, the real breakthroughs, the ones that will shape the next generation, will come when both sectors, public and private, start truly collaborating.” 

And ends on this note:

As we look to the future, please remember this. Every grand plan, every vision to reinvigorate our democracy, to renew our economy or realign our world will demand deep collaboration and even deeper trust. Without that trust, we’re left with talk, with the illusion of progress and none of the results. The reality is that listening builds trust and relationships. Trust and relationships accelerate action. And engagement leads to impact.

Well, Marc-André Blanchard and his team at CDPQ are certainly doing their part to engage and lead to impact on responsible investing.

I recently covered CDPQ's 2024 Sustainable Investing Report where they exceeded their targets here.

Below, Marc-André Blanchard accepts the 2025 Testimonial Dinner Award. Great speech, well done.

Sean Conlon and Hakyung Kim of CNBC report Dow jumps 500 points, S&P 500 posts longest win streak in 20 years as stocks claw back tariff losses:

Stocks rose on Friday as Wall Street digested a better-than-expected nonfarm payrolls report for April, which eased recession fears and lifted the S&P 500 for its longest winning streak in just over two decades.

The S&P 500 advanced 1.47% and closed at 5,686.67. This marked the broad market index’s ninth consecutive day of gains and its longest winning run since November 2004. The Dow Jones Industrial Average jumped 564.47 points, or 1.39%, to end at 41,317.43. The Nasdaq Composite gained 1.51% and settled at 17,977.73.

With Friday’s surge, the S&P 500 has now recovered its losses since April 2, when President Donald Trump announced his “reciprocal” tariffs. This comes a day after the tech-heavy Nasdaq accomplished the same feat.

Payrolls grew by 177,000 in April, above the 133,000 that economists polled by Dow Jones had anticipated. That figure was still down sharply from the 228,000 added in March but much better than feared after recession worries ramped up last month. The unemployment rate stood at 4.2%, in line with expectations.

“Markets breathed a sigh of relief this morning as the jobs data came in better than expected,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “While recession fears are still simmering on the back burner, the buy-the-dip dynamic can continue – at least until the tariff pause runs out.”

Investors were already upbeat prior to the strong jobs report after China said that it is evaluating the possibility of starting trade negotiations with the U.S. Still, Chinese authorities reaffirmed their belief that the U.S. should remove all unilateral tariffs, saying in a statement that “if the U.S. wants to talk, it should show its sincerity and be prepared to correct its wrong practices and cancel the unilateral tariffs.” Later in the day, a report from The Wall Street Journal suggested that Beijing is open to trade talks.

The Street was also mulling over earnings reports from two “Magnificent Seven” members. Apple slid 3.7% after posting fiscal second-quarter revenue from its services division that fell short against analyst estimates. Additionally, the iPhone maker said it expects to add $900 million in costs in the current quarter due to tariffs. Amazon shares, meanwhile, were marginally lower after the company issued light guidance, highlighting “tariffs and trade policies” as factors.

“We’ve already seen how financial markets will react if the administration moves forward with their initial tariff plan, so unless they take a different tack in July when the 90-day pause expires, we will see market action similar to the first week of April,” Zaccarelli also said.

Stocks have made an incredible comeback since Trump announced last month that’s he’s temporarily reducing his new tariff rates for most countries to 10% for 90 days. The market has especially picked up steam lately, leading to the S&P 500′s winning streak, as solid earnings have come out.

All three major averages posted their second positive week in a row. The S&P 500 added 2.9%, sitting more than 7% below its February high after at one point being down nearly 20%. The Dow posted a 3% advance on the week, while the Nasdaq added 3.4%.

‘We’ve passed peak tariff tantrum,’ InfraCap’s Jay Hatfield says

The recent sell-off spurred by worries around President Donald Trump’s tariff plans may be over, said Jay Hatfield of Infrastructure Capital Advisors.

“We think we’ve passed peak tariff tantrum,” the firm’s chief executive said in an interview with CNBC, adding that he has a year-end target on the S&P 500 of 6,600. That implies nearly 18% upside from Thursday’s close.

Hatfield also thinks there’s going to be a summer rally once the market gets through a “seasonally weak” May-to-June period. That said, he doesn’t believe the S&P 500 will rally past the 6,000 level until most concerns among investors have been resolved.

“We think there’s three areas of uncertainties, not just tariffs but also Fed policy and tax policy,” he added. “We don’t think we’re going to bust significantly above 6,000 until we get at least two of those three pretty well defined.”

It was a very strong week in the stock market led by mega cap tech stocks like Microsoft and Meta which posted solid earnings:

 

But the real story again this year is Palantir which was up over 300% last year and is flying high once again this year:

Incredibly, Palantir shares hit a low of $66 on April 7th and have since ripped higher and are right on the cusp of making a new 52-week high.

All this action spurred the Nasdaq higher this week but it's still off its 52-week high:

 

Nonetheless., all the talk of tariffs, recession, the end of American exceptionalism looks silly when you look at the S&P 500 which has now recovered all its losses since Liberation Day (April 2nd). 

However, the US dollar remains weak and some claim there's more downside to go (I'm not in that camp and believe the selloff in the US dollar was way overdone):

More worrisome, long maturity US Treasuries are also struggling to rally as investors weigh the real possibility of stagflation ahead: 

Also, despite the recent selloff which I foresaw, gold shares remain in a solid uptrend:

Not surprisingly, when you look at the top performing US large cap stocks, gold shares figure prominently (a few Canadian gold companies there) but it's a mixed bag with Palantir and biotechs I track closely like Verona Pharma, Summit therapeutics and TG Therapeutics. 

 

Apart from a few stocks however, biotech shares remain well off their 52-week high even after rallying massively the last couple of weeks:

Still, I see a few great opportunities in biotech as long as RISK ON markets gain traction but you really need to dig deep, pick your spots and know the companies and risks very well.

The big question that still persists is whether there is a slowdown in the US economy and are we in a recession.

This week, the US economy contracted for first time since 2022 as imports surged but today's US jobs report showed defied expectations as nonfarm payrolls increased a seasonally adjusted 177,000 for the month, slightly below the downwardly revised 185,000 in March but above the Dow Jones estimate for 133,000. 

The unemployment rate, however, stayed at 4.2%, as expected, indicating that the labor market is holding relatively stable.

The jury is still out in terms of recession but some indicators like housing activity are already pointing to one and I would encourage my institutional readers to listen to Francois Trahan's latest conference call entitled "It's Different This Time...Legitimately!".

Francois thinks all roads lead to stagflation and things will come to fruition in the second half of the year. 

Alright, let me wrap this up and post some great interviews below.

First, Nicolai Tangen, the head of Norway’s $1.8 trillion sovereign wealth fund, discusses the outlook for global markets amid recent trade policy upheaval and what that means for the fund's US investments. He talks with Bloomberg's Francine Lacqua in Oslo.

Tangen also spoke to CNBC International discussing investments in the US at the Norwegian sovereign wealth fund's annual investment conference.

Third, Mike Wilson, Morgan Stanley, joined 'Closing Bell' on Thursday to discuss what markets need to see to indicate a more sustained recovery from April's lows, if the equity rally is sustainable, and much more.

Fourth, Adam Parker, Trivariate Research founder, joins 'Closing Bell' to discuss the most recent news that sticks out to Parker the most, investor's attitude towards equity markets, and much more.

Fifth, David Zervos, Jefferies chief market strategist, joins CNBC's 'Squawk on the Street' to discuss outlooks on tech.

Sixth, Bob Elliott, Unlimited CEO and Adam Kobeissi, The Kobeissi Letter editor-in-chief, join 'Closing Bell: Overtime' to discuss market rally, their outlook for stocks and Fed day.

Seventh, Jeremy Siegel, Wharton School professor of finance, joins CNBC's 'Closing Bell' to discuss market outlooks.

Lastly, Bill Smead, Smead Capital Management, joins 'The Exchange' to discuss the mood in Omaha ahead of Berkshire Hathaway's annual investor meeting, the market opportunities, and much more.

Jasmine Kilman of Connect CRE reports Hoffman & Associates, Madison Marquette Sell The Wharf to PSP Investments:

Hoffman & Associates and Madison Marquette have sold their stakes in The Wharf, a mile-long 3.5 million-square-foot megadevelopment waterfront neighborhood in Washington, D.C., to Public Sector Pension Investment Board (PSP Investments).

PSP Investments, which has been a financial equity partner in the development since 2014, will own The Wharf in its entirety. Hoffman & Associates and Madison Marquette developed the $3.6 billion riverfront neighborhood located along the Potomac River, just south of downtown D.C.

“Since 2006, we’ve led The Wharf’s transformation from vision to reality, creating a dynamic, world-class neighborhood that includes everything from concert venues and homes to restaurants, parks, piers, and unparalleled waterfront access,” said Monty Hoffman, Founder & Chairman of Hoffman & Associates. “We have full confidence in our partner to carry forward our shared vision for The Wharf as we continue expanding communities across the DMV and beyond.”

With this sale, The Wharf marks the successful completion of its evolution from a transformative development to a nearly fully leased neighborhood offering residential, office, retail, and public space. 

In an exclusive interview, Monty Hoffman (featured above) discusses the sale of the project conceived two decades ago. You can read that Washington Business Journal article here (subscription required).

You can also read a lot more about The Wharf here and see many pictures of this exclusive riverfront property.

 As stated above, PSP Investments, which has been a financial equity partner in the $3.6 billion development since 2014, will own The Wharf in its entirety. 

That's quite an impressive asset to own and I guess the developers are exiting the project right after many years of developing it.

In other recent news, Freschia Gonzales  of Benefits and Pensions Monitor reports PSP and partner exit as offshore wind company changes hands: 

Havfram, an offshore wind installation company established in 2021 by Sandbrook Capital and PSP Investments, is set to be acquired by global dredging and marine engineering group DEME. 

The transaction, valued at approximately €900m, is expected to close by the end of April, subject to customary closing conditions. 

Sandbrook Capital and PSP Investments formed Havfram to address growing demand for Wind Turbine Installation Vessels (WTIVs) among major energy companies.  

Since its founding, the company has developed into a key player in the offshore wind sector, with two state-of-the-art WTIVs under construction and a strong contract backlog to support some of the largest offshore wind projects. 

“We partnered with PSP Investments to build Havfram because we saw a unique market opportunity to provide the state-of-the-art vessels required to build today’s enormous offshore wind farms,” said Christopher Hunt, partner at Sandbrook Capital.  

He added that DEME will take over as the company enters its next phase. Hunt also noted that Havfram has grown significantly in recent years and generated financial returns for investors. 

Sandiren Curthan, managing director and global head of Infrastructure Investments at PSP Investments, said the investment demonstrates the firm's broader capabilities and its commitment to investing in essential assets within the renewables value chain.    

Goldman Sachs acted as financial advisor, while Thommessen served as legal advisor to Sandbrook Capital and PSP Investments. 

PSP investments issued this press release on this deal:

London, UK; Montreal, QC; Oslo, Norway — April 9, 2025 — Sandbrook Capital, a private investment firm focused on building leading climate infrastructure companies, and the Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension investors, today announced the signing of an agreement to sell Havfram, an international offshore wind infrastructure company, to DEME (Euronext: DEME), a global leader in offshore energy and marine engineering. 

Established in 2022 through a strategic partnership between Sandbrook Capital and PSP Investments, Havfram was created to provide critical offshore wind installation capacity to the world’s leading energy companies. Under their ownership, Havfram has evolved into a world-class operator of Wind Turbine Installation Vessels (WTIVs), with two state-of-the-art vessels currently under construction and a strong contract backlog to build some of the largest offshore wind farms. 

“We partnered with PSP Investments to build Havfram because we saw a unique market opportunity to provide the state-of-the-art vessels required to build today’s enormous offshore wind farms” said Christopher Hunt, Partner at Sandbrook Capital. “In just a few years, Havfram has become one of the most important players in the offshore wind industry. We are proud of what the team has achieved and the positive financial returns delivered to our investors.  DEME will be an outstanding steward of the company in its next phase of growth.” 

“Our investment in Havfram reflects our broader capabilities and commitment to invest in assets essential to the renewables value chain, while generating strong risk-adjusted returns,” said Sandiren Curthan, Managing Director and Global Head of Infrastructure Investments, PSP Investments. “We are proud to have partnered with Sandbrook Capital and with the Havfram team to build a fleet of next generation WTIVs.” 

“The support and long-term vision of Sandbrook Capital and PSP Investments have been instrumental in building Havfram into what it is today,” said Ingrid Due-Gundersen, CEO of Havfram. “We’re incredibly excited to join forces with DEME, a global leader with a shared mission to accelerate offshore wind deployment. Together, we will play a major role in enabling the energy transition around the world.”  

The transaction, valued at approximately € 900 million, is expected to close by the end of April 2025, subject to customary closing conditions. 

Goldman Sachs served as financial advisors and Thommessen served as legal advisor to Sandbrook Capital and PSP Investments. 

About Sandbrook Capital
Sandbrook Capital is a private investment firm dedicated to building the next generation of climate infrastructure companies. Founded by a team of seasoned investors and operators, Sandbrook partners with exceptional management teams to grow sustainable businesses that deliver attractive financial returns and meaningful climate benefits. For more information, visit www.sandbrook.com.

About PSP Investments
The Public Sector Pension Investment Board (PSP Investments) is one of Canada's largest pension investors with C$264.9 billion of net assets under management as of 31 March 2024. 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 follow us on LinkedIn.  

About Havfram
Havfram is a Norwegian offshore wind installation company providing critical services to the global renewable energy industry. With two newbuild WTIVs under construction and a robust backlog, Havfram is positioned as a leading player in enabling the deployment of next-generation offshore wind farms. For more information, visit www.havfram.com. 

I vaguely remember this deal but clearly PSP and Sandbrook Capital did a great job developing Havfram into a world class offshore wind installation company and are now selling it to DEME, a global leader in offshore energy and marine engineering. 

The transaction, valued at approximately € 900 million, is expected to close by the end of April 2025, subject to customary closing conditions.

Ingrid Due-Gundersen, CEO of Havfram states: “We’re incredibly excited to join forces with DEME, a global leader with a shared mission to accelerate offshore wind deployment. Together, we will play a major role in enabling the energy transition around the world.”  

I'd say this was a strategic win-win for all parties involved. 

In other related PSP news, David Casey, Editor in Chief of Routes, reports AviAlliance plans to invest £350M In AGS Airports overhaul:

AviAlliance plans to invest £350 million ($465 million) over the next five years to modernize AGS Airports, which includes Aberdeen, Glasgow and Southampton airports. 

The company also appointed Charles Hammond, former CEO of Forth Ports, as the new chairman of AGS.​

The investment marks the largest capital program since AGS was formed in 2014 and follows AviAlliance’s £1.53 billion acquisition of the airport group from Ferrovial and Macquarie in January. The funds will support terminal upgrades, airfield infrastructure improvements and energy efficiency initiatives across all three airports.​

Scotland's Glasgow Airport will undergo a transformation of its main terminal, expanding floor space to accommodate more airline gates and enhance retail and dining options. Aberdeen Airport, also in Scotland, will see airfield infrastructure enhancements, while Southampton Airport's terminal will be redeveloped.​

“This significant investment will not only enhance the fabric of our airports, it will enhance the role they currently play in facilitating trade and tourism and, importantly, in generating meaningful employment across the country,” AGS CEO Kam Jandu says.

Glasgow is the largest airport in the AGS portfolio, handling approximately 8 million passengers in 2024. Aberdeen followed with 2.3 million, while England's Southampton Airport served around 850,000 passengers during the year.

AviAlliance, a subsidiary of Canada’s PSP Investments, entered the UK airport sector for the first time with the AGS deal, part of a strategic pivot following its exit from Budapest Airport and amid ongoing challenges in Germany’s aviation market. The company maintains holdings in Düsseldorf and Hamburg airports in Germany, as well as Athens, Greece, and San Juan, Puerto Rico.

Soon after finalizing the acquisition, AviAlliance sold a 22% stake in AGS to U.S.-based Blackstone for £235 million, retaining a 78% majority share and full operational control. The deal provides AGS with a new financial partner while keeping AviAlliance as the lead on strategy and operations.

Despite the investment, AGS’ three airports face headwinds. Glasgow has struggled to keep pace with Scottish capital Edinburgh, now Scotland’s main international gateway. Aberdeen, long reliant on oil and gas traffic, is adjusting to a shifting energy landscape. Southampton, meanwhile, faces competition from nearby Bournemouth and Bristol airports.

However, AviAlliance stressed the long-term potential. “AviAlliance takes a long-term view across all the airports within our portfolio, and this investment will assist AGS in accelerating its plans for delivering a superior passenger experience and growing connectivity,” AviAlliance Managing Director Gerhard Schroeder says.

“We are looking forward to working with AGS’ regional and national partners over the coming years to realize the full and undoubted potential of Aberdeen, Glasgow and Southampton airports.”

Recall, back in January, PSP announced the completion of its acquisition of AGS Airports, the operator of Aberdeen, Glasgow and Southampton airports from Ferrovial and Macquarie for an enterprise value of £1.53 billion.

More recently, Blackstone announced that Blackstone’s infrastructure strategy for individual investors has agreed to acquire a minority stake of 22% in AGS Airports (“AGS”), a platform of high-quality freehold airports providing access to key UK markets, from AviAlliance for £235 million:

Blackstone’s investment, together with AviAlliance and PSP Investments, is intended to support the continued growth of the travel and tourism industries across the United Kingdom.

AviAlliance, one of the world’s leading airport investors and operators, will remain the majority shareholder in AGS with a 78% stake.

AGS handles over eleven million passengers annually and is the owner and operator of three critical UK airports: Glasgow and Aberdeen in Scotland and Southampton in England.

If Blackstone is getting an important minority stake, that's quite an endorsement of this deal.

What else? PSP took part in the C$7 billion equity investment into Rogers managed by Blackstone and also took part in the the restructuring of capital led by Temasek of  Ceva Animal Health (Ceva), the world's fifth-largest animal health company. See details of that here.

Lastly, on the organizational front, at the end of March, PSP announced a new CFO and CRO:

Montréal, Québec (March 27, 2025) – The Public Sector Pension Investment Board (PSP Investments) today announced the appointment of Caroline Vermette as Senior Vice President and Chief Financial Officer (CFO) of PSP Investments. PSP Investments also announced the appointment of Alexandre Roy as Senior Vice President and Chief Risk Officer.  

Caroline Vermette joins PSP Investments from National Bank of Canada, where she most recently served as Senior Vice President, Internal Audit, providing independent assurance to the Board and senior management on the effectiveness of the Bank’s risk management, governance, and internal controls. She brings over 20 years of experience in financial leadership roles, demonstrating a proven track record of strategic financial planning, risk management, and driving efficiency through technology and innovation. 

“The appointment of Caroline Vermette as CFO marks an exciting new chapter for PSP Investments", said Deborah K. Orida, President and Chief Executive Officer, PSP Investments. "Her wealth of experience in financial reporting, internal audit, and risk management, combined with her deep understanding of complex financial transactions and international accounting standards, will be instrumental in ensuring the continued financial strength and strategic direction of PSP Investments. Caroline will strengthen PSP Investments ability to navigate an increasingly complex global investment landscape and deliver on our mandate for our beneficiaries."

Alexandre Roy joined PSP Investments in 2007 and has long played a critical role in strengthening the organization's risk management function and portfolio construction process. Through progressively senior roles, culminating in his position as Senior Managing Director, Total Fund Management, where he developed and implemented the Total Fund approach. This approach treats all asset classes and investment activities as a cohesive unit and as such has optimized the investment process, enhanced portfolio performance, and improved risk management across the organization. Most recently, he also assumed interim responsibilities of the Chief Investment Office.  

“Alexandre’s exceptional talent and leadership has long been instrumental to PSP Investments in delivering value for our beneficiaries and advancing our strategic objectives. His appointment as Chief Risk Officer reflects his deep understanding of our business, his proven ability to develop and implement new approaches to strengthen our organization, and his unwavering commitment to safeguarding the integrity of our investment portfolio. I am delighted to welcome Alexandre to our Executive Committee and look forward to the valuable insights he will bring. I am confident that in this role, he will continue to strengthen our risk management framework and contribute to the long-term success of PSP Investments," added Ms. Orida. 

I've heard nothing but good things about Alexandre Roy and I'm sure Caroline Vermette is highly qualified and will be a great CFO. 

You can view all of PSP Investments' senior managers here including Arun Bajaj, the new Senior Vice President, Chief People and Corporate Development Officer.

Alright, I started off discussing The Wharf and morphed this into a PSP Investments' latest deals and organizational changes comment.

Below, a virtual tour of The Wharf. The Wharf is one of the most popular areas for visitors and tourists to check out during a trip. It's also one of the areas where I recommend picking a hotel. Let's take a stroll around the Wharf and see what there is to see, do, and eat when you visit.