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CPP Investment Board unveils $550m commitments to private equity funds

The Canadian CPP Investment Board has announced new commitments of $550m to a handful of new and existing private equity fund partners and funds of funds. The investments take the pension fund's private equity commitments to CAN$5.6bn, with CAN$1.6bn of the commitments already invested.

The CPP Investment Board announced a strategic allocation for private equity investments of up to ten per cent in June 2001. Mark Weisdorf, Vice President responsible for private market investments for the CPP Investment Board, explained that these additional commitments are in line with that strategy.

He went on to add that  ' with valuations down at the moment, and the market slow, now is a good time to invest.'

The CPP Investment Board has committed up to $75m to Ares Corporate Opportunities and $150m to Credit Suisse First Boston Private Equity Customised Fund Investment Group, of which $100m has been committed to fund of funds. The pension board has also committed $75m to Lehman Brothers Venture Partners 2003.

In addition the CPP Investment Board has increased its commitments to two existing private equity funds. The pension board has committed an additional $100m to Kensington Capital Partners Limited, and an additional $25m to Lexington Capital Partners V for investment in secondary market opportunities.

‘These commitments further diversify our private equity portfolio and the total CPP portfolio,' said Weisdorf. ‘As an institutional investor with a long time horizon, we have the time to take advantage of the attractive returns that private equity can generate over a ten to 12 year time frame.'

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