Canada Pension Plan Investment Board (CPPIB) has committed $330 million more to Canadian private equity funds. The money, which will be managed by CPPIB’s long-standing investment partner Northleaf Capital Partners, add to the $1.2 billion the pension fund manager has committed to the domestic market since 2005. Northleaf-managed capital will target small and mid-market buyout and growth equity funds that are seeking to raise $1 billion or less. A December report by peHUB Canada estimated that Canadian private equity firms raised about $14.4 billion last year, much of which went to large-sized funds. In 2014, CPPIB also made a $70 million commitment to the Northleaf Venture Catalyst Fund.
Canada Pension Plan Investment Board Commits Additional $330 Million to the Canadian Private Equity Market
Northleaf Capital Partners to Manage Expanded Canadian Fund-of-Funds Program for CPPIB
TORONTO, ONTARIO–(Marketwired – Jan. 29, 2015) – Canada Pension Plan Investment Board (CPPIB) and Northleaf Capital Partners (Northleaf) announced today that CPPIB has committed an additional $330 million to the Canadian private equity market. The funds will be committed to a Canadian fund-of-funds program that will be managed by CPPIB’s longstanding investment partner, Northleaf. This investment is in addition to CPPIB’s $70 million commitment in 2014 to the Northleaf Venture Catalyst Fund. Since 2005, CPPIB has committed $1.2 billion to Canadian private equity investments through its partnership with Northleaf.
The investment objective of this additional mandate is to focus on Canadian small and mid-market buyout and growth equity funds that are seeking to raise $1 billion or less in capital commitments.
CPPIB is one of the largest and most active investors in Canadian private equity and venture capital with approximately $4.1 billion in commitments to Canadian fund managers and an active direct private equity investment strategy for the Canadian market.
“By expanding our successful Canadian fund-of-funds program, CPPIB can effectively access the Canadian private equity market,” said Jim Fasano, Managing Director, Head of Funds, Secondaries & Co-Investments, CPPIB. “We remain confident in Northleaf’s capabilities, expertise and proven track record in continuing to manage this program.”
“We look forward to continuing our longstanding partnership with CPPIB in managing this additional mandate for the Canadian private equity market, and building a focused portfolio of top-tier Canadian mid-market funds,” said Jeff Pentland, Managing Director, Northleaf Capital Partners. “We are proud to have supported CPPIB in advancing their program since 2005, and we value and appreciate CPPIB’s continued confidence in our team, track record and investment process.”
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 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 Hong Kong, London, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2014, the CPP Fund totalled C$234.4 billion, of which $61.7 billion represented private investments. For more information about CPPIB, please visit www.cppib.com.
About Northleaf Capital Partners
Northleaf Capital Partners (Northleaf) is a leading independent global private equity and infrastructure manager, with more than $6 billion in commitments under management on behalf of public, corporate and multi-employer pension plans, university endowments, foundations, financial institutions and family offices.
Northleaf’s 65-person team, located in Toronto, Canada, London, UK, and Menlo Park, USA, is focused exclusively on sourcing, evaluating and managing private markets investments globally. Northleaf currently manages six global private equity funds, a specialist private equity secondary fund, a direct infrastructure fund and a series of customized private equity and infrastructure investment mandates tailored to meet the specific needs of institutional investors and family offices. For more information on Northleaf, please visit www.northleafcapital.com.
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