Continuing its focus on Canadian private equity firms, the CPP Investment Board has committed $50 million (€38 million) to Celtic House Venture Partners Fund III, a Canadian venture capital fund with a target of $200 million.
With the Celtic House commitment, the CPP has now invested C$1.5 billion with Canadian private equity firms, comprising twenty percent of its total private equity portfolio of C$7.5 billion. Included in these figures are the C$590 million that the pension plan investor has committed to Canadian venture capital firms.
The CPP Investment Board had previously committed $13.5 million to Celtic House Venture Partners Fund II, a $270 million fund that closed in 2000. Other investors in that partnership included Goldman Sachs, the Ontario Municipal Employees Retirement System, the Ontario Teachers' Pension Plan, Paul Capital Partners and Sir Terence Matthews, a co-founder of the firm.
Celtic House Venture Partners was founded in 1994 by Roger Maggs and Matthews, an angel investor and founder of Mitel Semiconductor and Newbridge Networks. The firm’s first fund invested $55 million, primarily consisting of Matthews’ personal capital.
In November 2004, the CPP investment board committed C$50 million to EdgeStone Venture Fund II, a Canadian venture capital fund with a target of C$150 million.
The CPP Investment Board is the financial manager of funds not required by the Canada Pension Plan to pay current pensions. As of December 31, 2004, the value of the Canada Pension Plan was C$77.2 billion with C$50.6 billion managed by the CPP Investment Board.