Caisse de dépôt et placement du Québec’s private equity portfolio generated a 19.7 percent return in 2013, according to La Caisse documents.
La Caisse’s private equity performance came in slightly below its benchmark private equity return of 22.7 percent, but outperformed the 13.6 percent and 7.1 percent returns recorded in 2012 and 2011, respectively. La Caisse’s private equity performance over a four-year period stands at 16.5 percent, surpassing its 11.3 percent benchmark index. The four-year performance is a result of strong portfolio company earnings from their improved operational performance and reduced debt levels, according to the documents.
La Caisse’s private equity performance brought the value of its private equity portfolio to C$20.2 billion at the end of the year, up from C$17.8 billion in 2012. Private equity accounts for for 9.8 percent of La Caisse’s total portfolio.
Last August, the C$199.4 billion (€130.4 billion; $ 178.9billion) system announced that executive vice president of private equity Normand Provost would retire in 2014 and transition to the role of strategic adviser to the president. La Caisse has launched a search process to replace Provost, who joined the financial institution in 1980.
La Caisse manages institutional funds primarily from public and private pension and insurance funds in Québec. The system has roughly half of its private equity portfolio in direct investments and half in funds.