Canada Pension Plan boosts London houses

Candover and Coller are the beneficiaries of big ticket commitments from the C$14bn pension fund, which has around 20 per cent of its assets committed to private equity.

The Investment Board of the Canada Pension Plan has announced two large commitments to two leading London-based private equity firms, Candover Investments and Coller Capital.

Candover, which is close to completing the fundraising for a E2.5bn European buyout fund, has received E100m from the board, which manages monies not needed by the CPP to pay current pensions.  

Coller Capital, Europe’s largest secondary private equity investment house, received $75m. Coller is raising its fourth secondaries fund at present and is hoping to raise $1bn.

The allocations take the number of private equity firms that CPP has invested in to 14. The fund, which has C$14bn in assets, has $2.6bn, or 19 per cent in total commitments allocated to private equity. It expects these commitments to be drawn down over the next four to six years.

Actual investments stand at around four percent at present.

Some 75 per cent of CPP’s private equity allocations have been made in North America and the remainder in Europe. Private equity managers appointed by the fund’s board include European buyout player Bridgepoint Capital, US secondary firm Lexington Partners, Advent International and Paul Capital Partners.