May 20, 2025, Sydney
The Future Fund Board of Guardians (FFBG) has acquired a 9.995% stake in Transgrid from OMERS. Following the transaction, OMERS will retain a 9.995% stake in Transgrid and manage the other 9.995% interest on behalf of FFBG. The transaction has closed with financial terms not being disclosed.
Transgrid operates and manages the high voltage electricity transmission network in New South Wales and the Australian Capital Territory. It is the largest electricity transmission network in Australia, providing the backbone of the National Electricity Market, and is a critical enabler of the decarbonization of the Australian electricity sector through its investment in new transmission infrastructure.
OMERS quotes
Ralph Berg, Chief Investment Officer, OMERS, said: “For over 25 years, OMERS has been a direct investor in infrastructure. The asset class has provided OMERS with strong and predictable returns and the assets in our global portfolio – including firms such as Transgrid – have a strong social ethos and a purpose that fits the requirements of delivering for our members, partners and communities in which we invest. We are very proud to welcome Future Fund, with whom we share similar values and a common mission, into our Strategic Partnership Program, where they are now a co-investor in Transgrid and can access our excellent asset management platform and capabilities.”
Michael Hill, Executive Vice President and Global Head of OMERS Infrastructure, said: “With a dynamic team in Sydney, supported by our colleagues globally, OMERS Infrastructure has built a strong presence in Australia. Now into our second decade of investment, we have deployed over AUD 4 billion into energy, transport and digital assets. We are delighted to have Future Fund investing alongside us in Transgrid, one of the essential community assets in our portfolio that are critical contributors to the delivery of consistent and reliable returns to OMERS members.”
Christopher Curtain, Senior Managing Director & Head of Asia-Pacific, OMERS Infrastructure, said: “OMERS first invested in Transgrid in 2020, recognising the high-quality, critical infrastructure services it provides to Australian businesses and communities. We are proud of our support of Transgrid over the past 5 years as it has been leading an unprecedented transition of the Australian energy sector, and we look forward to continuing to do so through our new partnership with Future Fund.”
Future Fund quotes
Ben Samild, Chief Investment Officer of the Future Fund, said: “Our investment in Transgrid is in line with our risk and return objectives and reflects our consideration of the opportunities of the energy transition. The transition requires the support of patient, long-term investors and we believe our capital will be well rewarded by supporting Transgrid’s growth. Large infrastructure assets such as Transgrid help us achieve our Investment Mandate to deliver attractive risk adjusted returns and protect the portfolio from higher inflation, interest rates and currency volatility.”
Peter McCosker, Director, Infrastructure at the Future Fund, said: “We are very pleased to have secured an investment in Australia’s premier electricity transmission business. We look forward to working constructively with the Transgrid team, our co-securityholders and all Transgrid’s stakeholders to deliver long-term, sustainable outcomes for the business whilst facilitating Australia’s energy transition. This investment is a valuable addition to the Future Fund’s infrastructure holdings and will diversify our portfolio and help deliver on our investment mandate.”
For further information contact:
Future Fund
Andrew White
andrew.white@futurefund.gov.au
+61 417 681 085
OMERS
James Thompson
+44(0)7443 264 154
About the Future Fund
The Future Fund is Australia’s Sovereign Wealth Fund, investing for the benefit of future generations of Australians. The Future Fund Management Agency manages seven funds worth a total of $307 billion as of March 2025, including $240 billion in the Future Fund. The Future Fund’s investment mandate is to achieve an average annual return of at least CPI +4% to 5% per annum over the long term, with an acceptable but not excessive level of risk. Since inception in May 2006 the fund has returned 7.8% pa against a mandate target return of 6.9% pa.
The Future Fund has a long track record of direct investment in Australian infrastructure, including significant interests in some of Australia’s largest energy, digital and transportation assets. These large direct Australian holdings represent more than half the $24.6 billion of Infrastructure and Timberland holdings in the Future Fund as at 31 March 2025.
The Fund takes an active role in the governance of these investments, with a view to being an effective long-term steward of capital. The Future Fund was advised on the Transgrid transaction by JP Morgan and Allens.
About OMERS and OMERS Infrastructure
OMERS is a jointly sponsored, defined benefit Canadian pension plan, with 1,000 participating employers ranging from large cities to local agencies, and almost 640,000 active, deferred and retired members. OMERS members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate. As at December 31, 2024, OMERS had net assets of CAD 138.2 billion (approximately AUD 155.48 billion).
OMERS Infrastructure manages CAD 38.8 billion (approximately AUD 43.65 billion) across approximately 30 infrastructure assets located in North America, Europe, India and Australia, on behalf of OMERS and third-party investors through the Strategic Partnership Program. OMERS Infrastructure has over 100 dedicated infrastructure employees around the world.
Since opening an office in Sydney in 2014, OMERS has grown its investments in the country significantly, with deployments and a committed pipeline totalling more than AUD 10 billion, across infrastructure, office, residential and industrial real estate, as well as listed equities and fixed income. OMERS Infrastructure was advised on the Transgrid transaction by Barrenjoey Capital Partners and Herbert Smith Freehills.
