CPP Spreads The Wealth In Canada

The $123.8 billion Canada Pension Plan Investment Board, known as CPPIB, recently committed $400 million to a fund-of-funds program that will invest in Canadian small and mid-market buyout, venture capital and growth equity funds seeking to raise $750 million or less.

The program will be managed by Northleaf Capital Partners, which was formed in 2009 following the spinout of TD Capital Private Equity Investors, the private equity fund of funds and co-investment arm of TD Bank Financial Group. CPPIB chose the same group in 2005 to manage a previous $400 million commitment to smaller Canadian private equity and venture capital firms.

“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,” said Senior Vice-President-Private Investments Mark Wiseman, in a prepared statement.

CPPIB is one of the largest investors in Canadian private equity, having made more than $3 billion in commitments to Canadian fund managers; it is also an active direct private equity investment strategy. The Canada Pension Plan has a private equity portfolio of more than 135 funds with more than 70 managers. As of Sept. 30, 2009, the LP’s actual allocation to private equity stood at 11.2 percent.