October 22, 2004
The CPP Investment Board today announced commitments to one existing and three new private equity partners, totaling the equivalent of approximately $740 million.
• US$300 million to the KKR Millennium Fund LP, a fund managed by Kohlberg Kravis Roberts & Co. with offices in New York, Menlo Park and London. The fund, with total commitments of US$5.75 billion is expected to be invested over the next four years and will focus on large scale leveraged buyout investments primarily in the United States, Western Europe and Canada.
• €80 million to Partners Group Secondary, LP, a fund managed by Partners Group, with offices in Zug, New York, Guernsey, London and Singapore. The €500 million fund is expected to be invested over the next three years in secondary interests across a number of private equity partnerships.
• US$90 million to VSS Communications Partners IV, LP, a fund managed by Veronis Suhler Stevenson, with offices in New York and London. The fund, with a target of US$1.25 billion is expected to be invested over the next five years in mid-market media companies in the United States and Europe.
• US$100 million to MidOcean Partners II, LP, a fund managed by MidOcean Partners with offices in New York and London. The fund is expected to be invested over the next two years and will focus on late-stage middle market buyout investments in the United States and Europe. The CPP Investment Board previously committed US$273 million to MidOcean Partners, LP in February 2003.
These newest commitments bring the CPP Investment Board’s private equity commitments to $7 billion committed to 50 limited partnerships managed by 41 private equity firms. ”We continue to selectively add new partners to our private equity portfolio and to build our relationships with existing partners,” said John MacNaughton, President and CEO, CPP Investment Board. “Although it is still relatively early in the development of our private equity portfolio, we are pleased with its performance to date.” The value of the Canada Pension Plan reserve fund as at June 30, 2004, was $73.2 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 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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