Canada Pension Plan Investment Board (CPPIB) has completed a secondary deal to acquire a portfolio of primarily food assets from a partnership affiliated with Dallas, Texas-based private equity firm HM Capital Partners for US$468 million. CPPIB will also commit US$138 million to a newly-formed private equity fund, Kainos Capital Partners. The food and consumer products team of HM Capital Partners will manage both the assets that CPPIB has acquired as well as the Kainos fund, focusing on making new investments in the food sector.
Canada Pension Plan Investment Board (CPPIB) announced today that it has completed a secondary transaction whereby CPPIB will invest the capital required to acquire a portfolio of primarily food assets through a special purpose vehicle. The assets are being acquired from the HM Capital Sector Performance Fund and related co-investors for US$468 million.
CPPIB will also commit US$138 million in a newly-formed private equity fund, Kainos Capital Partners. The Food and Consumer Products team of HM Capital, led by Andrew Rosen, will manage both the assets that CPPIB has acquired as well as manage the Kainos Capital fund, focusing on investments in the food sector.
“We are excited to complete another significant and innovative transaction in the secondary private equity market,” said André Bourbonnais, Senior Vice-President, Private Investments, CPPIB. “This was a unique opportunity for us to partner with one of the most successful food investment franchises and purchase a portfolio of well-managed quality food companies, each with market-leading positions. We look forward to partnering with Kainos Capital in creating value over the long term for these assets and the new Kainos fund. ”
“As one of the largest and most active participants in the secondary private equity market, CPPIB has invested over $5 billion in the past five years. We expect to deploy significant amounts of additional capital in this market over the next five years,” said Mr. Bourbonnais. “We will continue to leverage our comparative advantages as a long-term investor with deep internal capabilities to provide solutions to complex transactions.”
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2012, the CPP Fund totalled C$172.6 billion. For more information, please visit www.cppib.ca.
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