July 14, 2004
The CPP Investment Board today announced commitments to two new private equity partners, totalling the equivalent of US$175 million.
• US$75 million to Hellman & Friedman Capital Partners V, LP, a fund managed by Hellman & Friedman LLC with offices in San Francisco and London. The fund, with US$3.5 billion of committed capital, is expected to be invested over the next six years in private equity opportunities. The fund will focus on buyout opportunities primarily in the U.S. with a secondary focus on western Europe and Australia.
• US$100 million to Silver Lake Partners II, LP, a fund managed by Silver Lake Partners with offices in Menlo Park and New York. The US$3.6 billion fund is expected to be invested over the next six years in large-scale private equity investments in technology and related growth companies in such forms as buyouts, spin-offs, recapitalizations and structured minority investments primarily in North America.
The commitments to Hellman & Friedman and Silver Lake Partners bring the CPP Investment Board’s private equity commitments to a total of $6.3 billion committed to 46 limited partnerships managed by 38 private equity firms. ”Private equity fits well with our broadly diversified portfolio. It is an attractive alternative to publicly traded stocks and has the potential to generate greater returns,” says John MacNaughton, President and Chief Executive Officer, CPP Investment Board. “We’re pleased to welcome Hellman & Friedman and Silver Lake as our newest specialized general partners.” The value of the Canada Pension Plan reserve fund as at March 31, 2004, was $70.5 billion.
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, real estate and infrastructure 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.
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