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CPP Investment Board (CPPIB)’s private equity investments boost assets to C$153.2bn.

by Hannah Edwards

  • 16 Aug 2011
  • PE

CPPIB is an investment management firm that invests capital not required by the Canada Pension Plan to pay current benefits on behalf of 17mn Canadian contributors and beneficiaries. It is particularly focused on delivering results over the long term and in 2008 CPPIB forecasted that its total assets under management would reach C$250bn by 2016. The recent results confirm that the assets of the fund have increased significantly and if they continue growing at the present rate then CPPIB is likely to achieve its target. At the end of Q1 2011, public pension fund had total assets under management of C$ 148.2bn, showing an increase of C$20.6bn over the previous year, and an increase of C$42.7bn over the previous two years. The latest results indicate that CPPIB’s assets increased by C$5bn from the end of Q1 2011 to the end of Q2 2011, indicating that the rate of growth has not slowed.

A significant contributor to the increase in CPPIB’s net assets during Q2 2011 was C$1.3bn of income generated mainly by its private equity investments. CPPIB is Canada’s largest investor in private equity and the tenth largest in the world. It currently has 15.7% of its total assets allocated to the asset class, and since it first entered the private equity market in 2001 it has made aggregate commitments of C$34bn to 151 funds with 79 managers. It is one of 460 public pension funds and one of 102 Canadian institutional investors currently tracked on the Preqin’s Investor Intelligence.

 

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