Canada Pension Plan Investment Board (CPP Investments), Canada’s largest pension fund manager, has committed a total of nearly Rs 1,800 crore to India’s private equity and real assets sector, CPP Investments revealed in its third quarter financial results.
The pension fund had joined Bain Private Equity and Bain Credit in acquiring minority stake in IIFL Wealth Management Ltd.
It had invested $53 million for a 2.7% stake in IIFL Wealth, a leading wealth and asset managementfirm in India. The Competition Commission of India gave its nod for the acquisition in June last year.
The global investor also in December last year agreed to sell its 49 % stake in L&T Infrastructure Development Projects Limited (L&T IDPL) for C$ 220 million.
Globally, as on the thrid quarter ending 31 December FY23, CPP Investments’ net assets had risen by $7 billion to $536 billion, compared to $529 billion at the end of the previous quarter.
The fund, which includes the combination of the base CPP and additional CPP accounts, achieved five- year and 10-year annualized net returns of 8.1% and 10.0%, respectively. For the quarter, the fund’s net return was 1.9%.
“Our diversified portfolio delivered gains this quarter due to a rebound in public equity markets, while our private asset values remained relatively flat. Despite the enduring global economic headwinds, our active management strategy enabled us to outperform markets over the first nine months of our fiscal year,” said John Graham, president and chief executive officer at CPP Investments.
Graham said that the pension fund expects market pressures to persist in 2023, but emphasized that its resilient portfolio continues to deliver strong, long-term results.
Last month, the fund had already struck its first transaction in India. It committed an investment of $205 million to IndoSpace Logistics Park IV, a real estate vehicle managed by real estate firm IndoSpace.
In the second quarter, the pension fund had committed Rs 1,850 crore to the first close of Kotak Infrastructure Investment Fund (KIIF). This investment by was part of its credit investments.
In April last year, Graham spoke to VCCircle on CPP Investments’ plans to grow its India credit business through its 'sponsor finance' portfolio, by extending credit to private equity fund managers for their deals.
The Canadian investor has also made equity investments in several Indian technology companies such as Flipkart, Byju’s, Daily Hunt’s parent Verse Innovations and will continue to allocate capital to such investments, Graham said.
CPPIB also made a $350 million credit investment in edtech startup Eruditus in March last year.
In distressed assets space, CPP Investments has partnered with India Resurgence Fund, a joint venture between Piramal Enterprises and Bain Capital. The Canadian investor also makes bets in mid-market credit segment through the India credit fund of Baring Private Equity Asia.
