November 15, 2005
The CPP Investment Board announced today that it is committing $400 million to the Canadian private equity and venture capital market. Of the $400 million, $250 million is being committed to a Canadian small and middle market buyout fund of funds and $150 million is being committed to a Canadian venture capital fund of funds, both of which will be invested and managed by TD Capital Private Equity Investors.
TD Capital Private Equity Investors was selected following a rigorous process that drew a strong response from many of the world’s leading private equity fund of funds managers.
“We are continuing to grow and diversify the private equity portion of the CPP reserve fund and increasing our commitment to the Canadian buyout and venture capital industries is part of this process,” said Mark Wiseman, Vice-President – Private Investments, CPP Investment Board. “We believe the combination of working with external managers while building internal capabilities will continue to be an effective approach.”
The CPP Investment Board has commitments to private equity totalling approximately $10 billion, of which nearly $2 billion is to Canadian private equity and venture capital, making the CPP Investment Board one of the largest investors in Canadian private equity and venture capital. The CPP reserve fund, which is made up of assets not needed to pay current CPP benefits, is $91.7 billion as at September 30, 2005.
CPP Investment Board
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits. Cash flows are currently invested in equities, bonds and real return assets, including real estate and infrastructure. By increasing the long-term value of funds, the CPP Investment Board will help the Canada Pension Plan to keep its pension promise to 16 million Canadians. With a mandate from the federal and provincial governments, the CPP Investment Board is accountable to Parliament and to the federal and provincial finance ministers who serve as the stewards of the CPP. Based in Toronto, CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. For more information about the CPP Investment Board, visit www.cppib.ca.
TD Capital Private Equity Investors
TD Capital Private Equity Investors is the fund of funds and co-investment business of TD Bank Financial Group. TD Capital Private Equity Investors invests in top-tier private equity and venture capital funds internationally and manages over $1.8 billion in private equity commitments on behalf of its institutional investors. For more information on TD Capital and its investment groups, go to www.tdcapital.com.
For further information contact:
Manager – Communications
CPP Investment Board