The Canada Pension Plan Investment Board has agreed to invest US$450 million in U.K. aerospace parts manufacturer Ontic.

The deal, designed to facilitate Ontic’s continued growth, is slated to close by year-end 2024, and has widespread real estate implications. Ontic is based in London and also has operations in the U.S. and Singapore.

The firm’s client base includes global aerospace leaders across both OEMs and aircraft operators. Ontic’s current financial partner, CVC Financial, will remain invested in the business, CPPIB announced.

“Ontic is a globally trusted aerospace partner, supporting and supplying established aircraft parts to the world’s aerospace leaders. It is uniquely positioned to address the strong need for products and services necessary to extend longevity of existing aircraft fleets,” said Hafiz Lalani, a CPPIB managing director and the pension fund’s global head of direct private equity.

“We look forward to working alongside CVC, a long-standing partner to [CPPIB], and the Ontic leadership team, to support the business as it aims to continue its current growth trajectory, while delivering attractive risk-adjusted returns for CPP contributors and beneficiaries.”

At last report, Toronto-based CPPIB’s fund totalled C$590.8 billion