Alberta investment creates jobs, diversification and grows Heritage Fund
Alberta’s Heritage Fund investments are supporting job creation and innovation in the renewable energy and natural gas sectors as well as demonstrating Alberta is Canada’s best place to do business and to invest in business growth.
Over the past year the Alberta Investment Management Corporation (AIMCo) invested in three growth-oriented Alberta companies – TransAlta Renewables, Calfrac Well Services and Pine Cliff Energy – on behalf of the Heritage Fund. The investments support initiatives in renewable energy and innovation in the natural gas sector, and help maintain and create jobs while diversifying Alberta’s economy.
The Heritage Fund investments make up approximately 20 per cent of the total AIMCo investments in these companies and contribute to the more than $1 billion increase in the value of AIMCo’s Alberta-based investments over the last year.
There are four Heritage Fund investments in total:
- $45.9 million to TransAlta Renewables to expand its high quality, clean energy developments
- Two investments of $6.5 million and $39.9 million to Calfrac Well Services to support innovation and environmental stewardship in the oil and gas industry
- $6.1 million to Pine Cliff Energy to consolidate natural gas assets
“Despite the prolonged drop in world oil prices, Alberta has the highest level of private sector investment in Canada. In fact, per capita investment in Alberta today is more than double the national average, and we are on track to hit record levels of investment in a variety of sectors. The jobs and economic diversification these investments contribute to in the short term also mean healthy long-term returns that benefit all Albertans.”
In October 2015, the Alberta government gave AIMCo a mandate to invest up to three per cent of the Heritage Fund – or $540 million – in Alberta companies with strong growth potential. These investments are guided by principles to maximize long-term financial returns and must meet at least one of the following conditions:
- creating jobs for Albertans;
- building new infrastructure in the province;
- diversifying the provincial economy;
- supporting Alberta’s growth;
- connecting Alberta companies to export markets; and
- developing subject matter expertise in Alberta.
“At AIMCo, we are long-term investors engineered to maximize return for our Alberta-based clients. That is important in today’s market as we represent a source of patient capital that supports companies in pursuing their strategy, while maintaining their skilled workforce, so that they may come out of this downturn stronger than ever. Despite the market difficulties the province is facing, our investment teams continue to find strong investment opportunities and we look forward to announcing more transactions in the future.”
The Heritage Fund continues its role as the province’s long-term savings fund, supporting priority programs and services for Albertans.