CPP Investment Board Commits $75 Million to Two New Partners for Mainly Canadian Investments November 3, 2003
The CPP Investment Board announced today a $25 million commitment to the CAI Capital Partners and Company III, a mid-market buyout fund, and a $50 million commitment to Ventures West 8, a venture capital fund. Both funds will concentrate their investments in Canada.
The CAI Capital Partners fund will focus on making equity investments in mid-market companies in North America, with a particular emphasis on Canada. The fund will invest primarily in the business services, industrial manufacturing, consumer products, energy services, financial services and healthcare sectors.
The Ventures West 8 fund will target early-stage technology companies across Canada in the information technology, biotechnology, communications and energy technology sectors.
The Ventures West investment brings the CPP Investment Board's Canadian venture capital commitments to a total of $550 million.
"We believe these Canadian private equity investors are well positioned to identify quality investment opportunities and generate superior returns in a broad range of sectors across the country," said Mark Weisdorf, Vice President - Private Market Investments for the CPP Investment Board. "CAI is sponsoring its third private equity fund since it began in 1990, while Ventures West is one of the largest and most established venture capital firms in Canada. It raised its first fund in 1973."
The CAI and Ventures West investments bring the CPP Investment Board's private equity commitments to a total of $5.3 billion committed to 39 limited partnerships managed by 34 private equity firms. Private equity commitments will be drawn down during the next few years.
The total Canada Pension Plan portfolio, which includes contributions to the Canada Pension Plan net of benefits paid, is $61.6 billion. In time the CPP Investment Board plans to invest up to 10 per cent of the total portfolio in private equity.
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.
For further information contact:
John Cappelletti
Manager
Communications and Stakeholder Relations
416-868-0308
jcappelletti@cppib.ca |
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