Canada Pension Plan Investment Board, Toronto, committed US$119 million to J.W. Childs Equity Partners IV, a new midmarket private equity fund managed by J.W. Childs Associates.
The fund focuses on North American consumer products, specialty retail and health-care services sectors, according to a CPPIB news release.
The commitment by the board, which oversees C$201.5 billion (US$182.8 billion) in assets, is part of an agreement to complete a US$477 million secondary investment in J.W. Childs Equity Partners III, which will provide liquidity so existing limited partners can take the option to cash out their investments, according to CPPIB spokeswoman Linda Sims.
The fund is at the end of its cycle, but CPPIB as lead investor sees value in companies in the portfolio and is rolling the investments into a J.W. Childs new fund, called Winter Street Opportunities, Ms. Sims said.
J.W. Childs will continue as the general partner and manage the partnership.
CPPIB had C$47.9 billion in private investments as of March 31, 2013, according to the board's website.