Canada’s CPPIB doubles Asia private equity exposure

The fund made four commitments to managers in the region, including $250 million and $200 million to the latest pan-Asian funds raised by CVC Capital Partners and TPG Capital, respectively. Another $200 million went to CDH Investments' fifth China fund and $120 million to Anchor Equity Partners' first Korean fund, according to the 2014 annual report.

There were two co-investments in Asia: South Korean pharmaceutical distributor Geoyoung Corporation and Indian IT outsourcer Hexaware Technologies.

The C$35.8 billion increase in total assets over the 12-month period comprised C$30.1 billion in investment income after operating costs and C$5.7 billion in net contributions. The portfolio delivered a gross investment return for the 12-month period of 16.5%, compared to 10.1% in 2013 and 6.6% in 2012. This is the second-highest annual return since inception.

Private equities in developing markets were the stand-out performer, delivering a return of 36.8% - up from just 7.4% in 2013 - while developed market private equities gained 35.1%. The returns for real estate and infrastructure were 18% and 16.6%, respectively.

Mark Wiseman, CPPIB's CEO, told Reuters that a disproportionate amount of effort would be devoted to finding deals in developing markets because the fund's long-term investment horizon allows it more time than many competitors to reap the benefits. "We are continuing to try and develop our portfolio in growth markets, places like India, Brazil, China - we see those markets providing good long-term value for the fund over all," he said.

CPPIB had C$41.3 billion in private equity as of March 2014, up from just C$16.1 billion four years ago. It has a further C$25.5 billion in real estate, C$13.3 billion in infrastructure, C$5.7 billion in private debt and C$2.7 billion in private real estate debt.

The private equity funds team currently has relationships with 69 managers, with a portfolio worth C$20 billion across 148 funds, up from C$17.2 billion in 137 funds last year. Undrawn commitments total another C$14.5 billion. The secondaries portfolio is worth C$4.4 billion, while C$200 million was deployed in four co-investments with GPs during the 12 months to March 2014.

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• Topics
• LPs
• Performance
• North America
• LPs
• Performance
• Canada
• Canada Pension Plan Investment Board (CPPIB)
• CDH Investments Management
• CVC Capital Partners
• TPG Capital
• Anchor Equity Partners