OMERS acquires minority stake in Purpose Investments

OMERS Platform Investments has acquired a minority interest Purpose Investments Inc. Financial terms were not disclosed. The transaction is scheduled to close today.

Founded in 2012, Purpose investments is controlled by founder, President & CEO, Som Seif. In connection with the transaction, NexC Partners Corp. (TSX: NXC) has sold all of its shares in Purpose back to Purpose.

Purpose has over $3.3 billion in assets under management and currently offers 33 exchange traded funds and mutual funds and 6 closed-end funds across multiple asset classes and both traditional and alternative investment strategies

“We founded Purpose on the idea that Canadians needed a better solution to protect and grow their investments, and that the investment industry was ready for the next step in its evolution,” said Som Seif, President & CEO of Purpose Investments. “We have seen tremendous growth in our business since our inception four years ago, and this new relationship with OMERS will provide us with the capital we need to advance our business faster and further. The opportunity in front of us now, to gain market share and to be the benchmark by which our peers are measured, is bigger than it has ever been. Further, this transaction allows us to reimagine the role we will play in our industry.”

“This new relationship goes beyond the simple benefit of access to capital,” continued Seif. “OMERS, as one of Canada’s largest pension funds, has tremendous insights and credibility, specifically in terms of asset management and entrepreneurship, and we both share a long-term view of success.”

OMERS Platform Investments is the innovation arm of OMERS, the pension plan for municipal employees in Ontario. OMERS Platform Investments leverages expertise from across OMERS to identify, establish and incubate new arms-length platforms that drive exposure to new investment themes and asset classes.

photo credit: Purpose Investments, Globe and Mail

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.