The Canada Pension Plan Investment Board will open an office in Sao Paulo in April, its first in Latin America.
The office will be staffed with three investment professionals, two of which have already relocated and focus on real estate, though CPPIB aims to grow the office to about a dozen individuals within the next year, according to a spokesperson for the pension. From Sao Paulo, CPPIB will focus primarily on the “five key markets” of Brazil, Chile, Colombia, Mexico and Peru, according to a statement. The pension has already invested about C$5 billion (€3.3 billion; $4.5 billion) in Latin America in private equity, real estate, infrastructure and public equity investments.
“Latin America is expected to be a leading source of global growth in the decades ahead, CPPIB president and chief executive officer Mark Wiseman said in a statement. “The office will support our efforts to gain access to the best investment opportunities in the region and will help us to continue to forge important relationships with local partners.”
CPPIB will build its Sao Paulo office with a combination of individuals from Toronto and Brazil. In addition to its Toronto headquarters, the pension also has offices in Hong Kong and London, and opened a small office in New York last month.
Don Raymond, CPPIB’s senior vice president and chief investment strategist, will resign from his position effective 31 March. Raymond will move into “a leadership role” at Toronto-based alternative investment firm Alignvest Management Corporation.
CPPIB recorded a 16.8 percent return on its private equity investments in foreign developed markets for the fiscal year ending March 2013. The C$192.8 billion pension plan was the most active fund investor in private equity during the 12-month period ending 31 March 2013, committing $3.99 billion to funds, according to Private Equity International’s Research and Analytics division.