The $40 billion Victorian Funds Management Corporation (VFMC) and Ontario Teachers' Pension Plan have bought 48.25 per cent of the Birmingham International Airport for $1,024 billion.
VFMC partnered with the Canadian pension fund because both managers believed they could best manage the assets directly.
"A number of investors like ourselves from around the world are concerned that we choose investments that work well alongside the liabilities of our clients," VFMC investment director David Brown said.
"Ontario Teacher's Pension Plan had the same issues as we did. We both felt we could directly manage the asset more efficiently than if we had a sponsored manager," Brown said.
"We will be represented on the board of the airport. This will ensure that our governance structures remain sound."
Birmingham's international airport handles more than nine million passengers a year with more than half the total UK population of 60 million within two hours drive of the transport hub.
The deal was finalised following a tender process managed by Macquarie Airports Group and the Dublin Airport Authority nine months ago.
West Midlands District Councils own 49 per cent of the airport while the airport's staff own 2.75 per cent of the business.
