The private equity arm of the Ontario Municipal Employees’ Retirement System has purchased a London-based recruiting firm for £820 million ($1.1 billion), OMERS announced Thursday.
Alexander Mann Solutions had been a portfolio company of New Mountain Capital, an investment firm in New York City.
The $1 billion-plus deal represents a major transaction for both OMERS Private Equity and New Mountain Capital, which only acquires three or four companies a year, its website said. Likewise, OMERS has opted for a concentrated direct investment strategy, as major plays such as the Hudson Yards development and Associated British Ports have demonstrated.
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Alexander Mann Solutions “is a very strong addition to our private equity portfolio,” said Mark Redman, OMERS’ global head for the asset class, in the statement. “This investment is a perfect fit with our broader strategy of partnering with industry leaders poised for significant growth.”
The recruiting company’s founding CEO Rosaleen Blair will stay on under the new ownership, at least for the time being, the statement indicated.
She praised the Ontario pension manager’s “partnership approach, its substantial and unconstrained capital base, and its experience of supporting businesses organically and through acquisition.”
The transaction must first undergo regulatory review, according to the announcement. It is expected to close in the second quarter of this year.
Private equity accounted for 12 percent of OMERS’ C$95 billion ($74 billion) portfolio as of the end of 2017, fund figures showed.