October 10, 2002
The CPP Investment Board announced today two further commitments to private equity funds for investment over the next several years in private companies.
The commitments are:
• 100 million to NIB Capital Private Equity Later Stage Co-Investments II, a fund focused primarily on European co-investments pportunities, to be managed by NIB Capital Private Equity. NIB Capital Private Equity was established in 1999 and is owned equally by ABP and PGGM, the two largest Dutch pension funds which, collectively, have approximately €billion in assets (as of December 31, 2001). NIB Capital Private Equity Later Stage Co-Investments II will be invested over the next three years in parallel with top tier lead investors primarily in Western Europe.
• US$50 million to Schroder Ventures International Life Sciences Fund III, LP, a fund managed by Schroder Ventures Life Sciences with offices in Boston, London and San Francisco. The Fund, with a target of US$400 million, is to be invested over the next five years in venture capital opportunities. The Fund will focus on the life sciences and healthcare sectors primarily in the United States and Europe.
The CPP Investment Board plans to invest up to 10 percent of total assets in private equity. To date, C$4.4 billion has been committed to 30 limited partnerships managed by 26 private equity firms. The commitments will be drawn down over the next several years. As of June 30, 2002, C$650 million, or approximately 3.8 percent of the CPP Investment Board’s total assets, has been invested in private equity.
The remainder of the CPP Investment Board’s assets are primarily invested in funds that replicate stock indexes for Canadian, U.S. and non-North American publicly traded equities. Private equity is expected to produce higher returns than public equity over the long term.
Created in December 1997, the CPP Investment Board is a crown corporation that invests funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are invested in equities to balance the bond portfolio owned by the Canada Pension Plan. By increasing the long-term value of funds, the CPP Investment Board will help the Plan to keep its pension promise to Canadians. Located in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.
For further information contact:
Vice President – Private Market Investments