Canadian institutional investor Caisse de dépôt et placement du Québec (CDPQ) will acquire a 44% stake in local insurance distributor Greenstone for an undisclosed sum.

Richard Enthoven and Gavin Donnelly, who founded Greenstone in 2007, will remain majority shareholders in the Sydney-based company. Mr Enthoven will continue as Executive Chairman.

The sale of a stake to CDPQ follows last year’s aborted $984 million float of Greenstone on the Australian Securities Exchange.

Mr Enthoven says it seals Greenstone’s future as a privately owned company.

“This investment can put to bed any discussion about a re-run at the boards,” he told insuranceNEWS.com.au. “We’ve achieved the best of both worlds with this transaction. It’s extremely unlikely we will consider a listing now.”

Greenstone’s product range spans life, funeral, income protection and pet insurance. Its proprietary brands include Real Insurance, Australian Seniors Insurance Agency, Guardian Insurance and Prime Pet Insurance. Greenstone also owns the Choosi comparison website.

CDPQ is no stranger to business in Australia, where it has been active since 2012, when it invested in five public-private-partnership development projects.

Chief Investment Officer Roland Lescure describes Australia as “one of our priority markets”.

In 2013 CDPQ acquired 30% of the Port of Brisbane and last year it bought 25% of NSW electricity transmission network Transgrid.

Last year its real estate subsidiary Ivanhoé Cambridge acquired 25% of Sydney CBD office building Liberty Place. CDPQ has also invested in private medical imaging company I-Med Network.

“We’re planning to contribute both capital and global industry knowhow,” Mr Lescure said of the group’s latest investment in Australia.

In February Mr Enthoven ruled out another tilt at floating Greenstone and instead flagged “bringing a minority stakeholder into our business”. 

Following a “competitive professional process” CDPQ has filled the role.

Mr Enthoven told insuranceNEWS.com.au there will be no immediate changes at Greenstone “other than having the strength, wisdom and financial might” of its new partner.

In time the business “will definitely change, but don’t expect any sudden or rapid change”.

“We certainly hope it will be an engaged, value-adding stakeholder,” he said. “We’re really keen to bring its global resources to bear at Greenstone.

“This could really turbo-charge the business. The prospects [for Greenstone] are certainly brighter than they were before the transaction, and we’ve already enjoyed another record year as it is.”

The transaction is subject to Foreign Investment Review Board approval.