December 17, 2003
The CPP Investment Board today announced commitments to three new partners, including its first commitment to an infrastructure fund. The CPP Investment Board’s newest commitments are:
• $100 million to Macquarie Essential Assets Partnership, a fund managed by a wholly-owned subsidiary of the Macquarie Group with 30 international offices including Toronto, Vancouver and New York. The fund will invest in North American infrastructure assets, including pipelines, electricity transmission and distribution networks, located primarily in Canada with a secondary focus on the U.S.
• US$150 million to Onex Partners LP, a fund managed by Onex Corporation with offices in Toronto and New York. The fund, with a target of US$1.6 billion, is to be invested over the next six years in private equity opportunities. The fund will focus on control investments in mid market North American companies.
• US$100 million to TPG Partners IV, a fund managed by Texas Pacific Group with offices in Fort Worth, San Francisco, Washington D.C. and London, England. The fund, with a target of US$5 billion, is to be invested over the next five years in private equity opportunities. The fund will focus on buyout opportunities primarily in the U.S. with a secondary focus on western Europe.
The commitments to the Onex and TPG funds bring the CPP Investment Board’s private equity commitments to a total of $5.5 billion committed to 41 limited partnerships managed by 36 private equity firms. The $100 million commitment to Macquarie represents the CPP Investment Board’s first commitment to an infrastructure fund. ”Private market investments remain an important part of our long-term investment strategy and these new commitments continue our program of diversifying the total CPP portfolio,” says John MacNaughton, President and Chief Executive Officer, CPP Investment Board. “We’re pleased to have relationships with three new like-minded managers with specialized expertise and established track records.” The total Canada Pension Plan portfolio, which includes contributions to the Canada Pension Plan net of benefits paid, is $64.4 billion. The CPP Investment Board plans to invest up to 10 percent of the total portfolio in private equity and up to 5 percent each in infrastructure and real estate. CPP Investment Board 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 and real estate 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 Canada Pension 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 more information on the CPP Investment Board, visit www.cppib.ca. Amounts are in Canadian dollars unless specified.
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