CPPIB grows PE investments by C$1.4bn

The Canada Pension Plan’s private equity portfolio increased to C$24.1bn during the first quarter of the fiscal year, helping the pension’s total assets reach a record C$153.2bn.

The Canada Pension Plan Investment Board’s private equity portfolio grew by approximately 6 percent during the quarter ending 30 June, as the pension fund increased its holdings in the asset class by about C$1.4 billion (€975 million; $1.4 billion)

Private equity accounts for 15.7 percent of the pension’s total portfolio. The pension has C$79.4 billion total invested in equities.

“While major equity indices were down this quarter, the fund’s private equity holdings and real estate portfolio helped deliver positive results overall,” president and chief executive officer of CPPIB David Denison said in a statement.

Among CPPIB’s private equity investment highlights from Q2 2011 was its partnership with Allianz Capital Partners and the Abu Dhabi Investment Authority in June, acquiring a 24.1 percent stake in gas transportation business Gassled for $3.2 billion. CPPIB said it would be committing an equity investment of C$738 million to the transaction.

On the exit front, the announced sale of a 65 percent interest in Skype alongside venture firms Index Ventures and Andreessen Horowitz will yield a “substantial gain” on the pension’s $329 million investment in 2009, CPPIB said in the statement. 

CPPIB ended the first quarter of fiscal year 2012 with net assets of C$153.2 billion, an increase of C$5 billion from the previous quarter ended 30 March, 2011.

The Canada Pension Plan Investment Board’s (CPPIB) saw the return for its private equity portfolio increase by 40 percent over its last fiscal year.