The Canada Pension Plan Investment Board’s private equity portfolio grew by roughly 2.8 percent during the first quarter of the 2014 fiscal year, from C$32.6 billion (€23.8 billion; $31.6 billion) to C$33.5 billion.
CPPIB’s private equity portfolio represents 17.7 percent of the pension plan’s total assets, which stood at C$188.9 billion as of 30 June, up from C$183.3 billion at the end of the previous quarter. CPPIB’s entire portfolio generated an overall return of 1.1 percent during the quarter, a “relatively turbulent” period, CPPIB president and chief executive officer Mark Wiseman said in a statement.
“Interest rates rose significantly as bond markets fell, while volatility increased across major equity markets producing mixed returns,” Wiseman said.
The pension plan is coming off a strong fiscal year for private equity. During the 12-month period ending 31 March 2013, CPPIB recorded a 16.8 percent return on its private equity investments in foreign developed markets. The pension plan’s Canadian private equity portfolio returned 3.4 percent during the period, while its emerging market portfolio returned 7.4 percent.
CPPIB completed a €175 million investment in German energy metering business Ista International during the first quarter, investing alongside CVC Capital Partners.
Since 2007, CPPIB has deployed $4.5 billion in over 24 secondaries transactions, establishing itself as one of the largest direct secondary market participants. Of the $4.5 billion invested, 70 percent has been deployed through the acquisition of limited partner interests, with the remaining 30 percent in direct secondaries, such as captive spin-outs or by providing liquidity to tail end portfolios.
CPPIB is seeking to deploy an additional $10 billion in secondaries over the coming five years.