The federal pension manager's latest deal deepens its Canadian portfolio as domestic assets approach a $100bn milestone
PSP Investments has agreed to acquire a 50 per cent interest in Enercare Inc., one of Canada's largest home infrastructure companies, from Brookfield and its institutional partners for $1.6 billion, the latest sign of the federal pension manager's growing commitment to deploying capital at home.
The Public Sector Pension Investment Board (PSP Investments), headquartered in Ottawa with its principal business office in Montréal, announced the deal on November 9, 2026. The transaction is expected to close in the first half of 2027, pending customary regulatory approvals.
Enercare, based in Markham, Ontario, supplies essential residential and commercial equipment including water heaters, heating, ventilation and air conditioning (HVAC) systems, and water purification solutions, alongside related protection plans and services.
The company serves more than 1.4 million homes and businesses across Canada, with an established presence in Ontario and Quebec and an expanding footprint in Western Canada under its brands Enercare and HydroSolution.
A deepening domestic strategy
The deal reflects a broader pivot by PSP Investments toward Canadian assets at a time when the country's major pension funds are under growing pressure and finding growing incentive to deploy capital domestically.
In fiscal 2026, PSP invested more than $10 billion in Canada, pushing its gross assets under management in the country past $75 billion. The fund has set an ambition to surpass $100 billion in Canadian assets within the next few years.
PSP's escalating domestic allocation represents a meaningful shift in how Canada's largest pension managers are thinking about home-market risk and opportunity. Enercare's recurring revenue model and stable, inflation-linked cash flows make it a natural fit for a pension fund managing long-duration liabilities.
"Enercare delivers equipment and services that Canadian households and businesses rely on every day," said Andrew Alley, Managing Director and Global Head of Infrastructure Investments at PSP Investments. "The company's strong customer relationships, recurring revenue model and strong market position make it a highly attractive long-term infrastructure investment."
Alley noted the deal will be held within PSP's High Inflation Correlated Infrastructure (HICI) portfolio and will rank among the fund's most significant direct infrastructure investments in Canada.
A long-standing partnership with Brookfield
PSP Investments is not new to Enercare. The fund co-invested alongside Brookfield when the company was taken private in 2018, in a deal then valued at $4.3 billion. Since that privatisation, Enercare has expanded beyond its Ontario base into Quebec and Western Canada, growing both its customer base and product range.
The November 2026 transaction rebalances ownership between the two partners. Brookfield will retain a 50 per cent stake and continue working with PSP on strategic direction.
Both parties have committed to Enercare's ongoing growth through customer base expansion, new product and service introductions, and other long-term initiatives. The existing management team, led by Nick Perreten, President and Chief Executive Officer of Enercare, will continue to run day-to-day operations.
"We are excited to continue executing on our strategy with the continued support of two long-term investors who share our commitment to customer service, operational excellence and strategic growth," said Perreten. "The backing of Brookfield and PSP will help make our customer promise even stronger."
Inflation hedge in an uncertain market
The Enercare investment fits squarely within the type of real asset that pension funds have increasingly favoured as a hedge against inflation. Equipment rental businesses with large, contracted customer bases generate stable, recurring revenues that tend to track living costs — an appealing characteristic for funds managing obligations that increase as inflation rises.
PSP's infrastructure portfolio returned 10.1 per cent in fiscal 2026, one of the fund's stronger-performing asset classes during a year in which broader private market returns were pressured. The push to increase Canadian infrastructure holdings is well-timed, with the federal government laying groundwork to open airport privatisations and other large-scale asset recycling opportunities to institutional investors.
The Enercare deal also signals the kind of partnership capital that Canada's private infrastructure market is likely to see more of. PSP's $320.6 billion in net assets under management, as at March 31, 2026, gives the fund substantial firepower and its stated intention to grow Canadian holdings to more than $100 billion suggests further domestic dealmaking ahead.
BMO Capital Markets and TD Securities acted as financial advisors to PSP Investments on the transaction; Blake, Cassels & Graydon LLP served as legal counsel. CIBC Capital Markets and Scotiabank advised Brookfield, with McCarthy Tétrault LLP acting as legal counsel.
For advisors monitoring how institutional capital is reshaping the Canadian investment landscape the Enercare acquisition underscores a clear and accelerating trend: Canada's largest pension managers are bringing more of their capital home.
