Limited partner Canada Pension Plan Investment Board has opened its first ever international office in Hong Kong a month after committing $200 million (€134.6 million) to Chinese-focussed private equity fund FountainVest.
David Denison, president and chief executive of the Canada Pension Plan Investment Board, said in a statement his firm had chosen Hong Kong as its first overseas base because it believes the long-term growth opportunities in the region are compelling.
The Asian team will source private equity and real estate investment opportunities with a focus on countries including China, Hong Kong, Japan, South Korea and Taiwan.
The CPP Investment Board will act as lead co-sponsor of the first FountainVest fund along with fellow Canadian LP the Ontario Teachers' Pension Plan, which is also investing $200 million. PEO first reported the story in January.
Singapore sovereign fund Temasek is also committing $50 million, according to a source. The source said the FountainVest fund has a target of $700 million and a hard cap of $750 million.
The CPP Investment Board has C$1 billion (€677 million; $1.01 billion) committed to private equity and real estate investments in Asia.
Last year Swiss fund of funds Adveq also opened its first Asian office in Beijing as limited partners seek proximity to the firms in which they invest.
Yesterday European buyout firm Candover also opened its first Asia office in Hong Kong.
On December 31, 2007, the CPP Investment Board’s total funds were C$119.4 billion of which C$20.2 billion is invested in private investments.