The Caisse de depot et placement du Quebec (CDP) building is seen in Montreal.CHRISTINNE MUSCHI/Reuters
Two big Canadian pension fund managers are part of a group taking a majority stake in a global consulting firm whose assignments have included helping troubled Enron and WorldCom and advising on the turnaround of General Motors Co.
Caisse de dépôt et placement du Québec and Public Sector Pension Investment Board have joined global fund manager Investcorp Group and founder Jay Alix in the acquisition of the ownership stake in AlixPartners from CVC Capital Partners.
The transaction values New York-based AlixPartners at more than $2.5-billion (U.S.), the company said in a news release Monday.
When CVC acquired AlixPartners in 2012, the value of the consultancy was put at more than $1-billion.
AlixPartners was founded in 1981 and is now one of the top consultancies in the world, with revenues of $1-billion.
It made its name helping turn around companies in bankruptcy, and also provided forensic accounting services and investigations in high-profile cases including the fraud masterminded by Bernard Madoff.
"Over the past 35 years, AlixPartners has developed expertise that is now sought after worldwide and helps companies stay on the leading edge in highly competitive markets," Caisse chief investment officer and head of private equity Roland Lescure said.
"The resilient nature of its activities and its strongly diversified business model make it an attractive investment for CDPQ."
The Public Sector Pension Investment Board – or PSP Investments – invests funds for several pension plans, including those of the public service and the Canadian Forces.
Under the terms of the new ownership structure at AlixPartners – which has more than 1,600 professionals and 25 offices on four continents – managing directors will continue to hold "a significant stake" in the firm and have access to a new equity system, the company said.