Mergers and acquisitions with direct pension fund involvement soared in the second quarter, S&P Global Market Intelligence data shows.

Transaction value totaled $13.58 billion, a 157.9% jump from $5.28 billion in the second quarter of 2023. However, the number of deals in the second quarter fell to 21 from 28 announced transactions in the same period a year earlier.

In the first half of 2024, total deal value stood at $14.92 billion. During the period, 53 deals were announced.

– Download a spreadsheet with data in this story. – Read about private equity entries in the second quarter. – Explore more private equity headlines.

Top transactions

Canadian pension funds have been involved in five of the 10 biggest deals announced in the second quarter.

In the biggest M&A deal with direct pension fund involvement, Canada Pension Plan Investment Board and Global Infrastructure Management LLC agreed to buy energy company Allete Inc. for $6.23 billion, including the assumption of debt.

In the second-biggest deal, an investor group including Employees Provident Fund of Malaysia offered to buy the remaining stake it doesn't own in Malaysia Airports Holdings Bhd. for $3.18 billion.

Private equity and venture capital firms were co-investors in three of the biggest deals.

In the biggest deal involving both private equity and pension fund buyers, an investor group including Fengate Capital Management Ltd. Partners Group Holding AG and Labourers' Pension Fund of Central and Eastern Canada completed a C$1.8 billion investment in datacenter provider eStruxture Data Centers Inc.

Energy deals grow, tech investments plunge

Pension funds invested the most capital in the energy and utility sector in the second quarter of 2024, with $7.72 billion in total, higher than $405.6 million in the second quarter of 2023. The industrial sector came second with $4.26 billion.

Pension fund-backed M&A deals in the technology, media and telecom sector plunged to $1.13 billion in 2024 from $17.23 billion in the same quarter in 2023.