Canada Pension Plan discloses billions in investments

Aug 15, 2022 | News

CPP Investments

Canada Pension Plan Investment Board, Toronto, reported a large number of investments and commitments it made in the first and second quarters of fiscal 2023.

 CPP Investments, which manages the assets of the $406.1bn Canada Pension Plan, said in the fiscal first quarter it closed a C$230m investment in the term loans of Legal Search, a provider of property and corporate-related search services in Australia, the U.K., and the U.S., committed $160m to Lumina Strategic Solutions Fund, a Brazil-focused special situations credit fund, and invested $100m in a unitranche loan for IGT Solutions, a business process outsourcing company specializing in airlines, online ticket agencies and hospitality, with operations mostly in India and the Philippines.

Within private equity, CPP said it committed $409m to buyout fund EQT X and $100m to Trustar Capital V. “Trustar Capital Partners is the private equity affiliate of CITIC Capital focused on control-oriented buyouts in Greater China,” CPP said in the release. It also closed on a $50m commitment to Radical Fund III, after formerly committing to Fund II as an anchor investor. Radical Ventures is a Toronto-based early-stage manager focused on artificial intelligence opportunities in Canada and the U.S., the release said.

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In co-investments, CPP committed to a $120m co-investment alongside private equity firm CVC Capital Partners for up to a 17% stake in Sajjan India Ltd., a specialized agrochemical manufacturer in India; invested $50m in a co-investment alongside private equity firm Silver Lake for a 4% stake in Entrata, a Utah-based developer of property management software that focuses on multifamily residential apartments; and a $50m co-investment alongside Indian private equity firm Multiples into Acko Tech & Services, an Indian digital insurance platform focused on retail customers. Once all funding is deployed, CPP added, it will hold about 5% stake in the firm, the release noted.

CPP also invested $65m alongside private equity firm Anchor Equity Partners into Fresheasy, a home meal kit distributor in South Korea, for an approximate 9% stake; a $50m co-investment in Anaplan, a U.S.-based provider of cloud-based planning and analytics software, alongside private equity firm Thoma Bravo for an approximate 0.5% stake; a $35m co-investment alongside CVC Capital into Razer Inc., a global lifestyle brand for gamers, and a $34m investment alongside Multiples into Kogta Financial Ltd., a non-banking Indian financial company focusing on new and used vehicle financing and lending to micro, small and medium enterprises in semi-rural areas in India, for an approximate 9% stake.

Within real assets, CPP committed $300m to the Hillhouse Real Asset Opportunities Fund, which is managed by Hillhouse Investment Management and seeks to invest in the “new economy real estate sectors in China focusing on life science, data centres and logistics,” CPP added.

It also acquired 100% of four onshore wind farms in central Sweden through Renewable Power Capital, the pension fund’s European onshore renewables platform. As part of this transaction, CPP said it is committing an additional €803m to Renewable Power Capital.

CPP also said it made a number of commitments and investments during the current quarter.

It committed $400m to Apax XI, which is a buyout fund managed by Apax Partners; €200m to TDR Capital V, a European midmarket buyout fund; $150m to NewQuest Asia Fund V, a secondaries fund managed by NewQuest Capital Partners focused on emerging Asian markets; and $150m to Oak Hill Capital Partners VI, which is “focused on investing across the industrials, media & communications, business services and consumer sectors” in the U.S., the fund said.

CPP also closed on an aggregate commitment of $333m to venture capital firm Sequoia Capital, comprising commitments to the Sequoia China and Sequoia India/South East Asia funds; and committed $100m to Kimmeridge Fund VI, which focuses on the energy sector.

CPPIB committed an additional $225m to KDV II, its second development joint venture with partners ESR Group, an Asian real estate manager, and APG, the Dutch pension provider. KDV II invests in and develops industrial and warehouse logistics portfolios in South Korea.

CPP also increased its commitment to BAI Communications, a global communications infrastructure provider, alongside partners Manulife Investment Management, and Alberta Investment Management Corp., Edmonton, to “support BAI’s ongoing growth strategy.” CPP indicated it has committed about C$3bn toward BAI since 2009 and holds an 86% ownership stake in the firm. The increased commitment size was not disclosed.

CPP also acquired an additional 33.3% stake in Bullring Shopping Centre in Birmingham, England, raising its stake to 50% for a total equity exposure of C$439m; invested an additional $150m in Octopus Energy, a U.K.-based clean energy technology pioneer, and committed a further $225m.

CPP also committed a further C$700m to IndInfravit Trust, its Indian toll roads portfolio company as part of a transaction to acquire five operating road concessions from Brookfield Asset Management. It has invested C$875m total.

Source: Pensions & Investments

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