About Our Business – Page 2 – CC&L Financial Group Ltd.

Crestpoint Real Estate Investments Ltd., one of Canada’s leading commercial real estate equity and debt managers, is pleased to announce the launch and initial funding of the Crestpoint Opportunistic Real Estate Strategy (the “Fund”), its first closed-end product.

The Fund, with a twelve-month capital raising period and an eight-year total term, aims to invest in a range of opportunistic Canadian real estate investments and has a gross annualized return target of 15% to 18%. Returns achieved, will be primarily through capital appreciation delivered through a combination of selective, strategic acquisitions and Crestpoint’s active, hands-on approach to asset management.

Coinciding with the launch and initial closing, Crestpoint is also pleased to announce that the Fund has completed its first investment, 1318 Thurlow Street, a 0.4 acre development site located on the southwest corner of the intersection of Thurlow and Burnaby streets in the popular West End neighbourhood of downtown Vancouver, B.C. When completed, this 32-storey, concrete, purpose-built multi-family rental building, comprised of 300 units including a mix of studio, 1-, 2- and 3-bedroom suites, with a range of indoor and outdoor amenity space, will offer tenants impressive views. With a Walk Score® of 96, the property is strategically located in a transit-oriented community in close proximity to restaurants, shopping, Sunset Beach, the downtown business district, hospitals and universities. Partnering with Anthem Properties Group Ltd., Crestpoint, on behalf of the Fund, has acquired a 77% interest in the property with Anthem Properties owning the remaining 23% interest.

“Since Crestpoint’s inception in 2010, some of our best investments have been in periods characterized by the market volatility and dislocation we see today,” said Kevin Leon, CEO of Crestpoint. “We believe it’s a compelling investment environment. We expect to use multiple strategies to create and capture value, including repositioning undermanaged assets, recapitalizing properties with weak balance sheets and renovating existing buildings to higher standards.”

The Fund, focusing on capital appreciation, is designed for institutional clients seeking access to a higher potential return portfolio than available in core real estate, providing them with additional choice and an opportunity for diversification. This strategy complements Crestpoint’s existing flagship, $5.3 billion open-end Core Plus Real Estate Strategy, which has been one of the top-performing core/core plus funds in Canada since its inception in 2011. In 2022, Crestpoint launched the Crestpoint Real Estate Debt Strategy, an open-ended mortgage fund that has outperformed its benchmark since inception.

Max Rosenfeld, EVP and Head of Asset Management at Crestpoint, added, “This new strategy leverages our management expertise and deep relationships within Canada’s real estate investment community, strengths that have enabled us to successfully complete over $3 billion in value-add and opportunistic investments over the last 13 years.”

Following the success of this initial capital raise, the Fund will hold subsequent closings to allow additional investors to participate, with the next close expected to be in Q4 2024.

Learn more about this exciting new offering in a video with Crestpoint’s CEO, where he highlights the details and opportunities ahead. Watch the video here.

About Crestpoint

Crestpoint Real Estate Investments Ltd. is a commercial real estate investment manager dedicated to providing investors with direct access to a diversified portfolio of commercial real estate equity and debt investments. With over $10 billion under management, Crestpoint is an affiliate of the Connor, Clark & Lunn Financial Group, one of Canada’s largest private, independently held multi-boutique asset management firms with offices throughout the country and in the US, the UK and India. CC&L Financial Group and its affiliates collectively manage over C$133 billion in assets across a broad range of traditional and alternative investment products and solutions for institutional, high-net-worth and retail clients. For more information, please visit crestpoint.com.

Contact

Elizabeth Steele
Director, Client Relations
Crestpoint Real Estate Investments Ltd.
(416) 304-8743
[email protected]

Our inaugural Responsible Investment report reflects our commitment to sustainable infrastructure investments and reports on the initiatives we’ve taken across our portfolio.

Report highlights:

Long-term investors: Our business is employee-owned and our team invests in our funds directly alongside our clients; we are motivated to prioritize the long-term success of the portfolio by sustainably managing our investments.
Sustainable practices: We integrate Responsible Investment considerations at every step of our investment process, from initial assessment to ongoing management.
Impactful projects: Our investments provide essential services, with a diverse asset base consisting of critical transportation, social, and renewable energy infrastructure, including over 1.8 GW of operating capacity across a range of clean energy sources.
Community engagement: We actively engage and partner with local communities to ensure long-term alignment with our stakeholders.

Access the full report

Our annual Responsible Investment (RI) Report outlines our Affiliates’ ongoing commitment to sustainable investment practices and efforts to have a positive impact on people and planet through how we manage our own business.

2023 key achievements and initiatives

Active owners: Encourage companies to effectively manage material ESG risks and opportunities through our stewardship and engagement efforts.
Industry collaboration: Active participation in initiatives like the Canadian Coalition for Good Governance and Climate Engagement Canada that support effective capital markets operations and promote a unified industry voice.
Corporate Social Responsibility commitment: Strong commitment to societal impact through CSR policies prioritizing work environment, employee health and wellness and environmental stewardship.
Affiliate achievements: Notable successes include Crestpoint’s Zero Carbon certification of Arthur Erickson Place, CC&L Infrastructure’s Energy Transition Strategy and our Affiliates’ continued efforts to enhance their approach to incorporating ESG risks and opportunities in the investment process.

Access the full 2023 RI Report

For further details on how our Affiliates are implementing their responsible investing approach, please visit their websites.

Scott shared his proudest professional accomplishment from last year and a goal for the upcoming year in the newest issue of Middle Market Growth Magazine.

Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) is pleased to announce that it has completed its previously announced acquisition of an 80% equity interest in the Sharp Hills wind farm (Sharp Hills, or the Project), from EDP Renewables Canada Ltd. (EDPR Canada), a subsidiary of EDP Renewables, a leading global renewable energy producer. With this investment in Sharp Hills, CC&L Infrastructure now owns approximately 1.8 GW of renewable power across Canada, the U.S., and Chile, with overall assets under management of approximately $6 billion.

At approximately 300 MW of capacity, Sharp Hills is one of the largest onshore wind farms in Canada, representing clean energy generation equivalent to the amount of power used by more than 160,000 Alberta homes. The project completed construction and reached full operations in early 2024, and is fully contracted under a 15-year power purchase agreement with a high-quality counterparty.

“This investment in Sharp Hills marks our first wind investment in Canada, further diversifying our infrastructure portfolio across sector and geography,” said Matt O’Brien, President of CC&L Infrastructure. “We are pleased to once again be partnering with EDPR and look forward to owning and operating the Sharp Hills project together over the coming years.”

This transaction is CC&L Infrastructure’s second partnership with EDPR, having previously acquired a 560 MW portfolio of U.S. wind and solar assets in 2020. On a combined basis, CC&L Infrastructure’s partnership with EDPR totals more than 800 MW of operating renewable energy projects across Canada and the U.S.

About Connor, Clark & Lunn Infrastructure

CC&L Infrastructure invests in middle-market infrastructure assets with attractive risk-return characteristics, long lives, and the potential to generate stable cash flows. To date, CC&L Infrastructure has accumulated approximately $6 billion in assets under management diversified across a variety of geographies, sectors, and asset types, with over 90 underlying facilities across over 30 individual investments. CC&L Infrastructure is a part of Connor, Clark & Lunn Financial Group Ltd., a multi-boutique asset management firm whose affiliates collectively manage over $127 billion in assets.

Contact
Kaitlin Blainey
Managing Director
Connor, Clark & Lunn Infrastructure
(416) 216-8047
[email protected]

Jeff Wigle discusses Banyan’s 12-year partnership with Purity Life and the world of private equity on the Purity Pulse podcast.

Watch now

Michael Mormile, former Citadel portfolio manager, along with Jonathan Hartofilis and Richard Li, are partnering with Connor, Clark & Lunn Financial Group Ltd. (CC&L Financial Group) to jointly launch FortWood Capital (FortWood), a new emerging markets credit investment manager. In connection with the launch, CC&L Financial Group will provide seed capital along with investment from other clients.

FortWood seeks to capitalize on opportunities presented by structural inefficiencies in global emerging markets credit through a diverse portfolio of debt instruments. Michael Mormile explains, “Our approach combines thorough macroeconomic and fundamental analysis with a rigorous risk management framework to effectively manage the complexities of the emerging markets credit landscape and turn inherent market volatility into portfolio strength.”

FortWood’s absolute return and active long-only emerging markets strategies target corporate and sovereign external currency debt. These strategies are designed for clients looking to capture the attractive yields and value discrepancies found in under-researched markets.

“Partnering with Michael, Jonathan and Richard to expand into emerging markets credit is an exciting development for us. The FortWood team’s expertise in these regions and markets provides clients with the opportunity for additional diversification complementary to our existing offerings, along with potentially higher returns,” says Warren Stoddart, CC&L Financial Group’s CEO.

“By joining forces with CC&L Financial Group, we gain not only institutional operational support and global distribution but also a shared culture of excellence that will undoubtedly enhance our ability to focus on what we do best and achieve outstanding results for our clients,” says Michael Mormile.

This partnership, rooted in a strong team and shared principles, positions FortWood and CC&L Financial Group to exploit a growing asset class and new opportunities to deliver better client outcomes.

About FortWood Capital

FortWood Capital specializes in actively managed emerging markets credit strategies. Leveraging its investment expertise and a robust risk management framework, FortWood navigates complex markets and challenging environments to uncover value. Headquartered in Greenwich, Connecticut, FortWood is a part of CC&L Financial Group. For more information, please visit fortwoodcapital.com.

About Connor, Clark & Lunn Financial Group Ltd.

CC&L Financial Group is an independent, employee-owned, multi-boutique asset management firm that partners with investment professionals to build and grow successful asset management businesses. CC&L Financial Group offers through its affiliates a wide array of traditional and alternative investment management products and solutions to institutional, high-net-worth and retail clients. With offices in the US, the UK, India, and across Canada, CC&L Financial Group has over 40 years of history and its affiliates collectively manage approximately US$90 billion in assets. For more information, please visit cclgroup.com.

Media contact:

Rebecca Jan
[email protected]

Global sales contacts:

USA
Eric Hasenauer
[email protected]

Europe & EMEA
Carlos Stelin
[email protected]

Canada
Brent Wilkins
[email protected]

At the heart of our organization is the commitment and desire to provide superior performance and service to our clients. Our primary objective is to meet our clients’ expectations while ensuring our people are highly motivated and enthusiastic. This requires that we keep the business narrowly defined on what we do best, and endeavour to remain at the cutting edge of research and development initiatives within financial markets.

Investing in our Future Leaders

Once a year, we take the opportunity to share an annual update with our clients on our business, outlining how we are directing our efforts within CC&L to ensure we are prepared to fulfill our commitment to meeting investment performance and service objectives for our clients.

The past few years have been a period of transformation and growth at CC&L. Our teams have expanded as we are building the next generation of leaders. We have met our investment objectives across most of our strategies, which is contributing to asset growth. Most notably, the expansion in our quantitative equity capabilities and the broadening of our equity offerings and client base have meaningfully transformed our business. This growth is making us consider how to position our business for the next decade.

Our people are the foundation of our company and intellectual capital is our most precious resource. We remain dedicated to investing in our people through career development planning and leadership programs, we strive to enhance skill sets, the depth of our teams, investment processes, and plan for succession.

In support of talent development, CC&L’s Women in Leadership (WiL) initiative began in 2021, led by a committee comprising most of the women in the organization, to identify and address issues contributing to gender imbalance in the leadership within our organization, our industry, and our society.

This imbalance, we believe (supported by academic studies, industry research and personal experience) results from societal influences, complacency and unconscious bias. Although the statistics on gender imbalance in senior positions are disheartening, we are optimistic about driving change through thoughtful and coordinated action. If we successfully tackle the key issues contributing to the leadership gender imbalance, we will substantially broaden the talent pool from which great leaders emerge, creating better business outcomes.

An important – and unexpected – outcome of our efforts is that the solutions identified for leadership gender imbalance are also solutions that apply to broader issues, that can benefit everyone. In 2023, we began implementing the WiL committee’s recommended solutions. For more details, please read our Women in Leadership whitepaper.

Another major initiative over the past year was a project to foster a culture of continuous, real-time feedback, driving innovation, professional growth and motivation. We see feedback as essential for both individual and collective success. Challenging the status quo, innovating and taking risks are crucial in our competitive industry. Reaching our full potential depends on receiving constructive feedback for improvement. This belief led us to invest in a firm-wide development program, facilitated by a third-party consultant, to cultivate and strengthen a culture of feedback and innovation. This process started with an offsite meeting to arrive at a shared vision for our feedback culture and continued with six workshops to build foundational knowledge and skills and integrate feedback practices. This 10-month project was a significant step in our continuous efforts to improve our culture, leadership skills and processes.

In 2024, we will look at enhancing practices for managing parental leaves and career coaching.

In closing, I want to express gratitude to our clients for your trust, confidence and continued partnership.

Sincerely,

Martin Gerber
President & Chief Investment Officer

Our People

Our teams continued to grow in 2023. CC&L welcomed 25 new hires, resulting in a net increase of 18 employees for the year, bringing CC&L’s personnel count to 135. Our business also benefits from the 410 people employed by CC&L Financial Group, supporting business management, operations, marketing and distribution.

Our firm’s stability and specializations remain primary drivers of our business. Key to our success is thorough succession planning and a disciplined approach to career development. Our disciplined annual review process allows us to identify achievements, trends and areas for improvement.

We are pleased to share that several employees were promoted to Principal effective January 1, 2024 in recognition of their important and growing contributions to our firm.

CC&L’s Board of Directors is pleased to announce that, effective January 1, 2024, the following individuals were promoted to business owners of the firm, in recognition of their leadership and impact in their roles.

Fixed Income

Over the past two years, Brian Eby, Portfolio Manager-Macro Strategy, has been executing the final step of his succession plan, working closely with TJ Sutter in a mentorship role, transitioning macro analysis, forecasting and portfolio decisions. After 25 years at CC&L, Brian will be retiring effective June 30, 2024.

CC&L is pleased to announce that TJ Sutter has been promoted to Co-Head of the fixed income team. TJ joined CC&L in February 2021, after 10 years with RBC Capital Markets where he was a Director and Regional Head of the Fixed Income, Currencies and Commodities Group. Previously at RBC, TJ had significant responsibility for implementing investment risk strategies as well as leading a team of nine traders and salespeople with oversight of relationships with some of the bank’s largest clients. In his time here at CC&L, TJ has developed a strong track record as macro strategist for the fixed income team. TJ will partner with David George in the Co-Head role for the next two years as David transitions towards his retirement.

The investment record of the fixed income team is a testament to the excellent work that David has done in shaping the team and building out the fixed income team resources during his tenure. He along with the other partners have developed a talented group that will continue to develop and see opportunities to expand their roles over the next two years. David’s support over this period will allow for a seamless transition of roles and responsibilities ensuring that we are able to continue to successfully meet client investment objectives.

Ted Huang, a quantitative analyst who joined the fixed-income team in 2018 and became a Principal in 2021, was appointed business owner this year. Ted’s combination of strong quantitative skills and practical fixed-income experience has been invaluable in finding unique sources of added value in the bond market.

Fundamental Equity

Brian Milne moved into a role covering the energy sector, replacing Mark Bridges who retired from CC&L effective December 31, 2023. Brian has covered the energy sector for equities and credit for 13 years. He is a business owner and former Senior Credit Analyst covering energy credit for the Fixed Income team, where he collaborated with Mark on the energy sector.

Michael McPhillips was appointed Fundamental Equity Research Director effective December 31, 2023, following Mark Bridges’ retirement. Michael is a business owner with more than 10 years of experience and has been a Fundamental Equity team member since 2013.

The team is focused on developing the next generation of investment leaders and is pleased to announce the appointment of three individuals to business owner:

Lisa Conroy joined the Fundamental Equity Team in 2013 as an analyst covering a number of sectors in the Canadian equity market. Over time, her responsibilities have increasingly focused on supporting CC&L’s clients with insights on portfolio strategy and positioning. In recognition of her impact on the firm as a Product Specialist, Lisa became a Principal in 2022 and a business owner in 2024.

Kathryn Alexander joined the firm in 2017 as a Research Associate focusing on companies in the industrials and diversified financial sectors. She assumed increased responsibilities over time and was promoted to Principal in 2019, before deciding to take a break to start a family. We were excited to welcome her back in 2023 and she has quickly adapted. Her coverage now includes companies in the energy infrastructure, telecommunications and forest products sectors, and she’s also learning the skills to be a lead portfolio manager.

Jack Ferris joined the firm in 2022 as a Research Associate focusing on companies in the materials sector. He became a Principal in 2023. After quickly mastering that sector, his focus expanded to include companies in the consumer staples sector. In addition to researching companies, Jack is learning the skills to be a lead portfolio manager.

Quantitative Equity

Jennifer Drake completed her transition to Co-Head of the Quantitative Equity team effective January 1, 2024. Jenny has assumed primary responsibility for business and team strategy, working alongside Steven Huang, who continues to lead investment strategy.

The team continues to grow, adding people to all sub-teams in 2023, with approximately 10 new staff, bringing the team to 72 members. The plan is to continue investing in leadership resources across sub-teams at a similar pace this year.

Kyle Ingham, lead of the Q Investment Process Management sub-team, transitioned to a strategic role, Head of Investment Management Operations (IMO), effective January 1, 2024. The Q Investment Process Management sub-team is transitioning to a co-leadership model led by Cam MacDonald and Chris Holley.

Client Solutions

The team is adding to its leadership with an eye towards succession for Phillip Cotterill over the next couple of years. Calum Mackenzie joined the firm in July 2023, bringing significant experience from prior leadership roles and is increasingly contributing to the team’s strategic discussions. He became a Principal in 2023 and a business owner this year.

Diana Prenovost joined us in January 2023, working alongside Johanne Bouchard, a Senior Client Relationship Manager, who will be retiring on December 31, 2024, after 18 years at the firm. Diana was promoted to Principal this year and is CC&LIM’s first permanent employee located in our Montreal office.

Investment Management Operations

As Head of Investment Management Operations, Kyle Ingham is responsible for strategic leadership of investment management operations, reporting directly to the President and CIO. Kyle is a business owner who is providing succession for Lee Damji, and he also manages the Quantitative Equity Investment Process Management sub-team. Lee has been at CCL for 26 years, as Head of CC&LFG’s Information Systems team for 20 years and Managing Director, Operations for 2 years until 2019 when he transferred to CC&LIM to take on this new role. He continues to play an advisory role and provides mentoring for leadership development. His planned retirement date is December 31, 2024.

Responsible Investing

CC&L’s 2023 PRI evaluation scorecard reflects several improvements in our ESG activities. We are now ranked at or above median in all measurement categories.

The ESG Committee completed a review of our ESG practices in 2022 and prioritized several improvement areas. A project plan was developed, including enhancements to ESG training, reporting and engagement capabilities outside of Canada. Work in all of these areas began in 2023 and continues in 2024.

Business Update

Assets Under Management

CC&L’s assets under management (AUM) increased by CAD$10 billion in 2023 to CAD$64 billion as at December 31, 2023. We are pleased to report that our business continued to grow through new client mandates across all investment teams. In 2023, CC&L gained 21 new clients and five additional mandates from existing clients totalling CAD$2.6 billion. The majority of new mandates were for quantitative foreign equity from institutional investors outside of Canada.

Product Updates

We are launching a new Fixed Income Core Plus strategy in 2024 that will include CC&L’s core fixed-income strategy along with allocations to mortgages and emerging market debt managed by affiliated teams within CC&L Financial Group.

The distribution of CC&L’s Quantitative Equity strategies has been augmented with a Collective Investment Trust (CIT) platform in the US for ERISA-regulated pension plans. The Q Emerging Markets Equity CIT launched in January and the Q Global and Q International Equity CIT vehicles are also launching this year.

CC&L’s Ireland-based UCITS Fund platform is also expanding this year with the addition of Q Global Equity and Q Global Equity Small Cap funds.

Final Thoughts

We would like to thank our clients and business partners for their support and look forward to continuing to help you achieve your investment objectives.

In May 2024, US and Canadian markets will be moving to T+1 settlement cycle. As we transition to the shorter settlement cycle, we believe it is important for you to be aware of this upcoming change and the preparation CC&L has been making, alongside our industry partners.

Below are answers to common questions to help you understand the upcoming T+1 settlement transition, as well as the work we are doing to prepare for it.

What is T+1 settlement?

T+1 settlement refers to the process where securities transactions are completed one business day after a trade has been executed. Currently, in Canada, the US and Mexico, the standard is to settle these transactions two days after the trade (i.e., T+2).

Which markets are moving to T+1?

The US and Canadian markets are planning to switch to T+1 settlement over the Memorial Day weekend between May 25 and May 28, 2024. Mexico wants to make this change to align with the US, but is waiting for regulatory approval.

Europe and the UK are also looking to compress their securities settlement cycle. The Association for Financial Markets in Europe (AFME) established a T+1 industry taskforce in March 2023 and the UK formed a similar group called the Accelerated Settlement Taskforce in December 2022. However, neither Europe nor the UK has set a date for when they might move to T+1 settlement.

What is the live date for T+1 settlement in Canada and the US?

Canada settlement cycle T+1 transition timeline

Friday May 24, 2024	Saturday May 25, 2024	Sunday May 26, 2024	Monday May 27, 2024	Tuesday May 28, 2024	Wednesday May 29, 2024	Thursday May 30, 2024
Last T+2 trade date	Conversion weekend	Conversion weekend	First T+1 trade date	Double settlement date	Trade and settle T+1	Trade and settle T+1

Friday May 24, 2024	Last T+2 trade date
Saturday May 25, 2024	Conversion weekend
Sunday May 26, 2024	Conversion weekend
Monday May 27, 2024	First T+1 trade date
Tuesday May 28, 2024	Double settlement date
Wednesday May 29, 2024	Trade and settle T+1
Thursday May 30, 2024	Trade and settle T+1

US settlement cycle T+1 transition timeline

Friday May 24, 2024	Saturday May 25, 2024	Sunday May 26, 2024	Monday May 27, 2024	Tuesday May 28, 2024	Wednesday May 29, 2024	Thursday May 30, 2024
Last T+2 trade date	Conversion weekend	Conversion weekend	Markets closed conversion weekend	First T+1 trade date	Double settlement date	Trade and settle T+1

Friday May 24, 2024	Last T+2 trade date
Saturday May 25, 2024	Conversion weekend
Sunday May 26, 2024	Conversion weekend
Monday May 27, 2024	Markets closed conversion weekend
Tuesday May 28, 2024	First T+1 trade date
Wednesday May 29, 2024	Double settlement date
Thursday May 30, 2024	Trade and settle T+1

What are the benefits of T+1 settlement?

Moving to T+1 settlement has several advantages. According to the Securities Exchange Commission (SEC), it makes trading safer by shortening the time between making and settling a trade. This also helps protect investors and makes the trading process more efficient. A faster settlement time can lower credit and counterparty risk and collateral costs and increase market liquidity. It can also help reduce broker-dealer margin and collateral requirements.

What makes the move to T+1 distinct from previous settlement date compressions?

The shift to T+1 settlement is different and more complicated than past changes, such as the move from T+3 to T+2 in 2017, with a more aggressive timeline involving more complex technology and process updates. The previous change was a joint decision by the industry and regulators to make clearing and settlement safer and better coordinate with EU and UK trade lifecycle timelines. The move to T+1 is being driven by specific events and is mandated by the SEC, making it more challenging for market participants.

What are the key challenges in switching to T+1 settlement?

Moving to T+1 settlement brings up several challenges. First, while it reduces risk for those selling securities, it increases the work and potential for error on the buy side because of the compressed settlement timeline. This change means firms need to closely examine how they operate to handle the quicker pace.

Key issues for our firm include:

Different settlement times in global markets, which can make coordinating trades more complicated.
The timing of currency exchanges that need to happen after securities trades, which can affect when and how trades are settled.
Managing the cashflow cycle for pooled funds and segregated clients, which influences when trades can happen and requires changes in how investment teams work.

These challenges means firms must plan carefully to continue trading without issue under the new, quicker settlement timeline.

Which securities will the reduced settlement cycle affect?

The Canadian Capital Markets Association (CCMA) has compiled a list of securities scheduled to transition from the current T+2 settlement cycle to T+1 cycle in 2024. You can access the list at the CCMA’s website at: https://ccma-acmc.ca/en/t1-resources/canadian-t1-asset-list-liste-dactifs-canadiens-t1/.

The Depository Trust & Clearing Corporation (DTCC) also offers information on settlement cycles and related changes on its website at dtcc.com.

Will there be penalties for settling bonds and trades late?

No new penalties will be introduced; however, if registered dealers and advisers fail to meet the trade matching target requirements, they could face consequences. The Bank of Canada is considering charging a fee for any government bond trades that settle outside the prescribed timeframe. This fee would only be introduced after the transition to T+1 is complete, and the impact of the fee is properly assessed.

How is CC&L preparing for T+1 settlement?

In spring 2023, CC&L formed a project team to address the shift to T+1 settlement. This team is divided into four main workstreams focused on identifying and resolving issues and making changes in how trades are managed, covering everything from legal requirements to how trades are funded and settled.

It is also imperative that our peers and industry stakeholders are ready for this change. CC&L has started talking to brokers and custodians to understand their plans for T+1 and to determine what CC&L needs to maintain best execution.

Additionally, CC&L has consulted with technology providers to explore tools that could help with a shorter settlement period.

What are CC&L’s next steps?

As May 2024 approaches, CC&L will continue communicating with industry partners and clients, educating them about the change and working on necessary adjustments to meet the new standard.

Any updates to how CC&L handles transactions will be shared with clients closer to the start date.

If your question wasn’t answered above, please contact us at [email protected].

Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) is pleased to announce that it has entered into an agreement to acquire a majority stake in the Sharp Hills wind farm (Sharp Hills, or the Project) from EDP Renewables Canada Ltd. (EDPR Canada), a subsidiary of EDP Renewables for an estimated Enterprise Value of approximately C$0.6 billion for an 80% stake and inclusive of investment tax credits. With the addition of this investment, CC&L Infrastructure will own more than 600 megawatts (MW) of wind generation assets and the Firm’s total portfolio of renewable energy projects will exceed 1.8 gigawatts (GW) of clean energy capacity across Canada, the United States, and Chile.

Located in southeastern Alberta, Sharp Hills is one of the largest onshore wind farms in Canada with approximately 300 MW of capacity, representing clean energy generation equivalent to the amount of power used by more than 160,000 Alberta homes. The newly built project recently entered into operations, with remaining construction expected to be completed by Q2 2024. The construction of this facility marked a significant investment in the province, contributing to the local economy through job creation and funding to the community. Sharp Hills is fully contracted through a 15-year power purchase agreement with a high-quality counterparty.

“The Sharp Hills wind farm is an attractive addition to our increasingly diverse portfolio of infrastructure assets. We look forward to working further with our partner, EDPR, in the safe and successful operation of this facility for years to come,” said Matt O’Brien, President of CC&L Infrastructure. “CC&L Infrastructure has a long history and significant expertise as an owner of more than 80 clean energy projects. We are excited to continue expanding our asset base and are actively pursuing further investment opportunities created by the increasing demand for renewable power and the broader energy transition that is underway.”

“We’re excited to partner again with CC&L Infrastructure, this time in Alberta,” added Sandhya Ganapathy, CEO of EDP Renewables North America. “The Sharp Hills project underscores our continuing commitment to invest in Alberta and contribute to its grid resiliency and energy security. We look forward to continued efforts focused on Canada’s energy transition.”

This is CC&L Infrastructure’s second transaction with developer EDPR, having previously acquired a 560 MW portfolio of wind and solar assets in the United States. EDPR will retain a minority equity interest in Sharp Hills and continue to operate and manage the Project. National Bank Financial Inc. advised CC&L Infrastructure as financial advisor and Torys LLP as legal counsel while CIBC Capital Markets served as the financial advisor to EDPR Canada. The transaction is subject to customary closing conditions expected to be satisfied in the coming weeks.

About Connor, Clark & Lunn Infrastructure

CC&L Infrastructure invests in middle-market infrastructure assets with attractive risk-return characteristics, long lives and the potential to generate stable cash flows. To date, CC&L Infrastructure has accumulated over $5 billion in assets under management diversified across a variety of geographies, sectors, and asset types, with over 90 underlying facilities across over 30 individual investments. CC&L Infrastructure is a part of Connor, Clark & Lunn Financial Group Ltd., a multi-boutique asset management firm whose affiliates collectively manage over CAD$118 billion in assets.

For more information, please visit www.cclinfrastructure.com and follow us on LinkedIn.

About EDP Renewables North America

EDP Renewables (Euronext: EDPR) is a global leader in renewable energy development which has built a significant position in the energy landscape, establishing a presence in four global hubs – Europe, North America, South America, and Asia Pacific. With headquarters in Madrid and leading regional offices in Porto, Houston, São Paulo and Singapore, EDPR has a sound development portfolio of top-level assets and market-leading operating capacity in renewable energies. Its business mainly encompasses onshore wind, distributed and large-scale solar, offshore wind (through a 50/50 joint venture – Ocean Winds) and complementary technologies to renewables, such as hybridization, storage and green hydrogen. EDPR is a division of EDP (Euronext: EDP), a leader in the energy transition with a focus on decarbonization. EDP – EDPR’s main shareholder – has been listed on the Dow Jones Index for 16 consecutive years, recently being named the most sustainable electricity company on the Index.

For more information, please visit www.edpr.com/north-america and follow us on LinkedIn.

Contact

Kaitlin Blainey
Director
Connor, Clark & Lunn Infrastructure
(416) 216-8047
[email protected]

Tom Weirich
Lead – Marketing & Stakeholder Relations
EDP Renewables North America (EDPR NA)
(281) 825-2771
[email protected]