BCI Annual Report

2020-2021

Issue link: https://uberflip.bci.ca/i/1395542

Contents of this Issue

Navigation

Page 43 of 81

COMMITTED $1.7 billion across 13 funds and $900.0 million in six direct investments, totalling $2.6 billion, maintaining deployment goals for the year amid repeated lockdowns, work-from-home protocols, and strict travel restrictions. COMPLETED the partial sale of a direct investment to a like-minded investor, providing BCI with realized cash proceeds of approximately $500.0 million. We have retained a significant interest in the company given that it continues to increase its market share. EXPANDED the team to over 40 diverse and skilled professionals since 2016. During the disruption, we focused on the health and safety of employees, liquidity, supply chain disruptions, debt covenants, and operational readiness for the many designated essential- service companies in our portfolio. We remained diligent on ESG matters, working closely with our portfolio companies' boards and management teams to express BCI's priorities. We observed and guided efforts to preserve value and position the companies for an eventual recovery. PRIVATE EQUITY PROGRAM PERFORMANCE (%) Annualized returns for the periods ended December 31, 2020 1 GLOBAL DISTRIBUTION OF PRIVATE EQUITY PROGRAM (%) As at December 31, 2020 1 1 Assets in the private equity program are valued annually at December 31. Returns for the program are calculated on an internal rate of return basis and benchmarks are presented on a time-weighted rate of return basis. 2 Europe includes the United Kingdom. 45.0 United States 34.0 Europe 2 16.2 Emerging Markets 2.7 Asia Pacific 2.1 Canada 10.4% of assets under management Year-over-year increase of $2.8 billion As the year continued, we pivoted from defensive to proactive strategies to improve the portfolio, including investing in management talent, growth capital expenditures, and accretive acquisitions. Certain sectors, such as industrials and consumer, were more heavily impacted by the dislocation, but the portfolio remained resilient overall. The total equity support required for the direct investments amounted to less than 1.0 per cent of the direct investment portfolio's market value. 1 Year 5 Year 10 Year 15 Year 20 Year 24.4 17.4 17.6 14.3 11.4 11.4 13.4 13.1 13.6 13.9 Benchmark 2 0 2 0 - 2 0 2 1 C o r p o r a t e A n n u a l R e p o r t M a n a g e m e n t ' s D i s c u s s i o n a n d A n a l y s i s 4 1 M a n a g e m e n t ' s D i s c u s s i o n a n d A n a l y s i s

Articles in this issue

view archives of BCI Annual Report - 2020-2021