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Ontario Teachers' and the Caisse de depot et placement du Quebec Invest C$1.2 Billion to Help Form


Date: Tuesday, October 5, 2004

Teachers' Private Capital, the private equity arm of the Ontario Teachers' Pension Plan, and the Caisse de depot et placement du Quebec through its private equity unit have invested C$1.2 billion in the launch of Europe's newest and largest independent mezzanine fund, Park Square Capital Partners LP ("Park Square"). Partners Group of Switzerland is also joining as a sponsoring investor. Park Square's 1 billion(Euros) size, independence, unleveraged structure and focus on the largest European deals will make it a first of its kind in Europe. Its investment strategy will be to make substantial investments in the full spectrum of subordinated capital of European leveraged transactions for private equity firms, corporations and underwriting banks. The fund can underwrite single transactions of up to 200 million(Euros) and, with partners, can invest in larger transactions. Teachers' and the Caisse were among the first Canadian private equity funds to invest in Europe in the early 1990s. With over 10 years' experience, both investors decided a large mezzanine fund was a natural extension of their private equity investments in Europe and have each invested 350 million(Euros) in Park Square. The two institutions share a similar vision for the mezzanine market in Europe, enabling them to collaborate for the first time on a major investment. Robin Doumar, formerly head of Goldman Sachs' European mezzanine business, will lead the London-based management team, which has over 40 years' collective experience in credit markets, private equity and industry. Other senior managers are David Cottam and Michael Small. Jim Leech, Senior Vice-President, Teachers' Private Capital said, "As a founding financial partner, we were able to attract and back the industry's top management team, headed by Robin Doumar. We are very excited about the advantages Park Square offers, both to us as investors in Europe and to its clients." "Park Square Capital Partners LP represents an excellent opportunity for the Caisse to invest in a very attractive vehicle whose benefits include enhanced synergies with our European partners," explained Normand Provost, Executive Vice-President, Private Equity, of the Caisse de depot et placement du Quebec.