Tuesday, January 31, 2023

CPP, CalPERS add to private equity allocations



CPP Investments, the $529bn Canadian pension, and CalPERS, the largest US pension, have become the latest big-name investors to bolster private equity holdings.

In its latest quarterly update, CPP Investment Board revealed it had committed $300m to Clayton, Dubilier & Rice Fund XII and $400m to CVC Capital Partners Asia VI.

The allocations were the largest PE allocations in the update, which revealed a swathe of private markets tickets but nothing on the hedge fund side (read it here).

Public market declines were “more than offset by gains in US dollar-denominated private equity, real estate and credit investments, which benefitted from foreign exchange gains, and by positive returns on investments in energy and infrastructure,” according to CPP IB.

“Gains by external investment managers in fixed income, currencies and commodities also contributed positively to results.”

CalPERS boosted its private markets allocations in its latest update, with Ares Management’s private equity funds getting a ticket and almost $3bn slotted between Tower Bridge Infrastructure Partners and Golden Reef Infrastructure Trust.

The two allocators follow other investor giants including Adia and Pennsylvania PSERS in raising PE interest, despite nervousness among peers including Harvard Management over valuation lags.

Now read AFI analysis of the allocator debate over private equity