By David G. Barry
British
Columbia Investment Management Corp. (BCI), which invests on behalf of the
province’s public pension funds, has acquired a piece of a residential services
franchising platform.
Terms of BCI’s investment in Authority Brands was not disclosed, but the
franchisor designed it as a “significant minority stake.” Apax Partners LLP,
which first invested in Authority Brands in 2018, is retaining majority
ownership.
Based in Columbia, Md., Authority Brands owns companies that include 12 home
service franchisors. These include America’s Swimming Pool Co., Benjamin
Franklin Plumbing, The Cleaning Authority, Color World Painting, CareGivers,
Monster Tree Service and Mosquito Squad. The brands provide home services
through approximately 860 franchise owners across North America.
It will look to grow through additional
acquisitions and strategic initiatives, including franchise development,
technology transformation and international expansion.
In a prepared statement, Dave Hong, BCI’s senior managing director,
private equity, said Authority Brands fits with its focus on investing “in market-leading
companies with strong management teams, multiple levers for growth, and
resilient business models that create shareholder value.”
BCI’s private equity program actively manages a CA$24.8 billion (US$18.6
billion) global portfolio. It invests in direct and co-investment deals in
business services, consumer, financial services, healthcare, industrials, and
technology, media and telecommunications (TMT).
As of March 31, the end of its fiscal year, BCI had CA$211 billion (US$157.8
billion) under management. It reported a return of 7.4%, beating its benchmark
of 4.6%.
Eleven pension funds make up 78% of BCI’s assets
under management, while three insurance funds account for another 20% of the
assets. Its clients include the BC Hydro and Power Authority Pension Plan, the
British Columbia Railway Co., and the Public Service Pension Plan.