Canada Pension Plan Investment Board, Toronto, reported a large number of investments and commitments totaling more than $2 billion that it made in the second quarter of fiscal 2024 ended Sept. 30, according to a news release issued on Nov. 9.
CPP Investments, which manages the assets of the C$576 billion ($421.7 billion) Canada Pension Plan, said that in the second fiscal quarter, within credit investments, the fund completed a multiyear forward flow agreement — an arrangement where an investor agrees to buy a set of loans originated by another party — with Exeter Finance, a U.S. indirect auto finance firm, to purchase up to $200 million per year in residual certificates of auto loan receivables securitizations. The fund also invested $150 million in Cornerstone OnDemand's incremental first-lien term loan. U.S.-based Cornerstone OnDemand is a learning and talent management software firm.
CPP also invested £93 million ($115 million) in a debt facility for Vårgrønn, owner of a 20% stake in Dogger Bank Wind Farm, an offshore wind farm currently under construction off the coast of the U.K.; €60 million ($64 million) into a syndicated credit-linked note with an undisclosed global bank headquartered in Europe for a diversified portfolio of corporate loans; and €20 million in a syndicated credit-linked note with Banco Santander of Spain for a diversified portfolio of small and medium-sized enterprise loans.
Within private equity, CPP committed €500 million to CVC Capital Partners IX, which focuses on control and shared-control buyouts across industries primarily in Europe and the Americas; and $206 million to acquire positions in two undisclosed fund-of-fund vehicles that are invested in buyout, growth buyout and venture funds across a wide range of industries, primarily in the U.S.
The fund also committed $150 million to American Industrial Partners Capital Fund VIII, which will primarily target value-oriented, control investments in the North American industrials sector; $150 million to Hellman & Friedman Capital Partners XI, which focuses on leveraged buyouts and growth capital opportunities in North America and Europe, primarily in the technology and software, healthcare, financials and consumer and retail sectors; and C$200 million to the Canadian private equity market through an evergreen Canadian mid-market mandate managed by Northleaf Capital Partners, a Toronto-based global private markets investment firm.
The fund completed the secondary purchase of a $100 million commitment to Oak Hill Capital Partners V, which focuses on investing across the industrials, media and communications and business services in the U.S., and invested $50 million in ServiceTitan through an equity financing round and a secondary transaction. U.S.-based ServiceTitan is a cloud-based software platform for home and commercial service contractors.
CPP also invested $40 million in Redwood Materials, a U.S. company developing a closed-loop supply chain for lithium-ion batteries, through an equity funding round, and invested $19 million in Works Human Intelligence, a human capital management software provider in Japan, alongside Bain Capital Asia.
Within Real Assets, CPP formed a new partnership with Amsterdam-based Power2X, in which CPP will invest an initial €130 million to accelerate the growth of Power2X as a development platform and fund green molecule projects; committed up to $30 million to The Amazon Restoration Fund; and invested $500,000 in Mombak, a Brazil-based venture-backed carbon removal startup investment manager focused on reforesting the Amazon.
Following the end of the second fiscal quarter, CPP committed $240 million to TPG Partners IX, which focuses primarily on healthcare, software and digital media and communications, and committed up to $90 million in junior financing to fund up to $820 million of loans originated by Service Finance Co., a U.S. home improvement financial services company. CPP also committed $60 million to TPG Healthcare Partners II, which focuses solely on healthcare and targets upper middle-market and large growth buyouts in North America and Western Europe.
