The Canada Pension Plan Investment Board (CPP) has continued its strategy of making major investments in European private equity with the announcement that it has committed E100m to PAI which is presently concluding its own buyout from BNP Paribas.
PAI is raising a leveraged buyout fund which is due to close later this month. The fund had originally been capped at E1.25bn, but continuing interest in the fund in addition to the latest commitment from CPP, sees funds raised already exceeding E1.6bn.
In April this year, CPP announced commitments of E100m and E75m to Candover and Coller Capital. Candover is soon to close its E2.5bn European buyout fund, while Coller recently announced a first closing of $700m for its latest secondary fund.
CPP manages and invests monies not needed to pay current pensions in Canada. The latest commitments take the number of private equity firms that CPP has invested in to 14. In addition to Candover and Coller, CPP has invested in funds from Bridgepoint Capital and Advent International.
The fund, which has C$14bn in assets, has C$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 per cent at present.