November 5, 2004
The CPP Investment Board today announced a $50 million commitment to EdgeStone Venture Fund II. This Canadian venture capital fund, with a target of $150 million, will seek investment opportunities in early-stage software companies in enterprise solutions, transaction processing and networking.
With this latest commitment, the total amount committed to Canadian private equity funds is $1.5 billion, which includes $550 million to Canadian venture capital.
“We continue to seek investment opportunities in Canadian venture capital as part of our portfolio diversification strategy. We believe such investments will generate superior long-term returns,” said John MacNaughton, President and CEO, CPP Investment Board. The commitment to EdgeStone Venture Fund II brings the CPP Investment Board’s private equity commitments to $7.1 billion committed to 51 limited partnerships managed by 41 private equity firms. The CPP Investment Board committed $50 million in 2001 to the predecessor fund, EdgeStone Venture Fund I. The value of the Canada Pension Plan reserve fund as at September 30, 2004, was $75.2 billion.
The CPP Investment Board is a Crown corporation created by an Act of Parliament in December 1997. It invests in capital markets the funds not needed by the Canada Pension Plan to pay current pensions. Cash flows are currently invested in equities and real estate to balance the cash and bonds 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. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’slength from governments. Its fiscal year is from April 1 to March 31. For more information about the CPP Investment Board, visit www.cppib.ca.
For further information contact: