Ex-OTPP infra head joins Caledon

The investment consulting firm has hired Stephen Dowd as partner as it seeks to bolster its infrastructure team.

Toronto-based investment consulting firm Caledon Capital Management (Caledon) has appointed Stephen Dowd, a former senior executive at the Ontario Teachers’ Pension Plan (OTPP), as partner in its infrastructure team.

“Steve is helping take us to the next level and growing our business on the infra side,” Caledon founder and partner David Rogers told Infrastructure Investor.

Dowd formerly served as head of infrastructure and timberland investment at OTPP from 2007 to 2013. Under his tenure, the Canadian pension’s portfolio grew from $7 billion to more than $11 billion.

“I’m very excited to join Caledon… I’m going to be very much focused on infra, an asset class that continues to be of great interest to the institutional sector,” he told Infrastructure Investor. “I think the model at Caledon is a great one and is well aligned with the aspirations of institutional investors for long-term direct investments in the sector.”

Dowd is not Caledon’s first recruit with an institutional background. Martin Day and Asif Hussain, two of the firm’s six partners, previously held senior roles at the Ontario Municipal Employees Retirement System (OMERS) and the Abu Dhabi Investment Authority. Jeff Deblock, a vice president, joined from the Canada Pension Plan Investment Board.

Prior to founding Caledon, Rogers himself was a senior vice-president and team leader of OMERS’ private equity team from 2001 to 2006.

Dowd emphasized that Caledon does not intend to specialise in a given sector or geography, instead adapting its offer to the needs of its various clients as they work on building their infrastructure programmes.

“What we will be looking to do overall is to bring the best opportunities to our client base… so it’s not saying we have to be in midstream or renewables. It’s about finding the best returns that fit the clients’ objectives,” he added.

Rogers said most of the firm’s clients were seeking to gain global exposure to infrastructure – focusing predominately on OECD countries but with a growing appetite for emerging markets. He added that Caledon for now solely invests in equity but may consider looking at debt structures in the future.

Established in 2006, the firm currently has assets under management of more than $5 billion.