CPP Investment Board (CPPIB) and Northleaf Capital Partners announced today that CPPIB has committed an additional $400 million to the Canadian private equity and venture capital market. The funds will be committed to a Canadian fund-of-funds program that will be managed by CPPIB’s longstanding investment partner Northleaf Capital Partners (formerly TD Capital Private Equity Investors).
CPP Investment Board (CPPIB) and Northleaf Capital Partners announced today that CPPIB has committed an additional $400 million to the Canadian private equity and venture capital market. The funds will be committed to a Canadian fund-of-funds program that will be managed by CPPIB’s longstanding investment partner Northleaf Capital Partners (formerly TD Capital Private Equity Investors). Northleaf Capital Partners was selected in 2005 to manage a previous $400 million commitment by CPPIB to smaller Canadian private equity firms and Canadian venture capital firms.
The mandate of this additional investment is to focus on Canadian small/mid-market buyout, venture capital and growth equity funds that are seeking to raise $750 million or less in capital commitments.
“Expanding our investment in a Canadian fund-of-funds is a highly effective way for us to access small to middle-market Canadian private equity transactions and top Canadian venture capital managers. We believe that these investments will generate attractive risk-adjusted returns over time,” said Mark Wiseman, Senior Vice-President, Private Investments, CPP Investment Board. “CPPIB is one of the largest and most active investors in Canadian private equity and venture capital with more than $3 billion in commitments to Canadian fund managers and an active direct private equity investment strategy for the Canadian market.”
“We look forward to continuing our partnership with CPPIB in managing this significant investment and constructing a focused portfolio of top-tier Canadian funds,” said Stuart Waugh, Managing Partner, Northleaf Capital Partners. “As our largest institutional investor, we value and appreciate CPPIB’s confidence in our team, track record and investment process.”
CPP Investment Board
The CPP Investment Board is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 17 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2009, the CPP Fund totaled $123.8 billion. For more information about the CPP Investment Board, please visit www.cppib.ca.
Northleaf Capital Partners
Northleaf Capital Partners (Northleaf) is Canada’s largest independent global private markets fund manager and advisor. Northleaf was formed in 2009 following the successful spinout of TD Capital Private Equity Investors, the private equity fund of funds and co-investment arm of TD Group. From offices in Toronto, London and Menlo Park, California, Northleaf’s 40-person team currently manages over $3.2 billion in private market commitments on behalf of corporate and public pension plans, endowments, foundations, government agencies, financial institutions and family offices. For more information about Northleaf Capital Partners, please visit www.northleafcapital.com.