BCI, shortened for British Columbia Investment Management Corporation, is one of the largest institutional investors in Canada managing billions in net assets. In recent years, BCI has made a series of high-profile investments in companies across diverse sectors. Understanding BCI’s investment strategies and preferences can provide insights into future investment trends. Specifically, BCI tends to favor investments in established brands with growth potential, as well as emerging innovative technology startups. This article will analyze several of BCI’s major investments and the rationale behind them.
BCI invests in leading home services franchising platform Authority Brands
In September 2022, BCI led a new round of minority investment into Authority Brands, the leading home services franchising platform in North America. Headquartered in Columbia, Maryland, Authority Brands owns 12 leading home service franchise brands including America’s Swimming Pool Company, Benjamin Franklin Plumbing, Mister Sparky, and Mosquito Squad. With about 860 franchise owners across North America, Authority Brands provides residential services from property line to rooftop. BCI’s investment thesis is likely based on Authority Brands’ leading position in the highly fragmented home services market, its asset-light franchising model, and the vast room for growth through M&A, international expansion, and digital transformation. As a long-term investor, BCI can leverage its patient capital to help Authority Brands consolidate share in this sizable market.
BCI backs AI brain-computer interface startup Neurable
In April 2023, BCI participated in a funding round into Neurable, an American startup developing brain-computer interface (BCI) technology based on EEG signals. Founded at the University of Michigan, Neurable provides AI-powered algorithms and hardware for analyzing brain activity through non-invasive EEG sensors. Neurable’s technology has promising applications in VR/AR devices, wearables, and consumer electronics for gaming, productivity, wellness, and accessibility. As an emerging field at the intersection of neuroscience and AI, BCI presents enormous potential in healthcare and consumer tech. BCI likely invested in Neurable to gain exposure in this high-growth space. Its partnership with Japanese giant Epson also signals BCI’s global ambition in cutting-edge technology.
BCI takes minority stake in franchising leader Authority Brands
As reported in September 2022, BCI acquired a minority stake in Authority Brands, the largest home services franchising platform in North America. Owning 12 leading franchising brands serving homeowners’ needs from property line to rooftop, Authority Brands exemplifies BCI’s preference for market leaders with competitive advantage and robust unit economics. BCI also favors companies possessing multiple growth levers, such as M&A, digital transformation, and international expansion. With patient long-term capital from BCI and operational expertise from Apax Partners, Authority Brands is well-positioned to consolidate share in the vast yet fragmented home services industry.
In summary, BCI tends to seek investments in industry leaders, especially brands and platforms with franchising models and recurring service revenues. It also has appetite for emerging technology companies with innovations applicable to large addressable markets. BCI provides patient capital for its portfolio companies to pursue expansion opportunities.