Canada Pension Plan Investment Board, Toronto, disclosed about $1.5 billion in commitments it made during the quarter ended Sept. 30, the end of the second quarter of its fiscal year, and after Sept. 30, said a news release Nov. 15.
Within the credit portfolio, CPPIB committed up to $500 million to Hines Rialto Credit Partners, a commercial real estate credit fund managed by Rialto Capital that is focused on the U.S. office sector; and $298 million to a separately managed account managed by Heitman, targeting junior capital solutions for select real estate assets in the Asia-Pacific region,
Within the private equity portfolio, CPPIB committed $75 million to Radical Ventures Growth Fund I, an artificial intelligence-focused venture capital and growth manager; and $50 million to Kohlberg Investors X, which will invest in North American middle-market companies.
CPPIB also disclosed some commitments made after Sept. 30. Specifically, the pension fund committed C$443 million ($328 million) to a separately managed account managed by ESR Kendall Square, targeting credit solutions for logistics assets in South Korea; and $200 million in aggregate across CVC Growth Partners III and CVC Growth Partners III Co-Investment, which will invest in middle-market growth-oriented software and technology-enabled business services companies in U.S. and Europe. Both funds are managed by CVC Capital Partners.
In addition, CPPIB said in the news release that it returned a net 3.6% for the quarter ended Sept. 30 and a net 4.6% for the six months ended Sept. 30. For the 10-year period, the fund returned an annualized net 9.1%.
Benchmark returns were not provided.
CPPIB said the pension fund's net assets increased to C$675.1 billion as of Sept. 30, up from C$646.8 billion three months earlier.
Rising prices for U.S. equities largely lifted the pension fund’s performance during the quarter, while interest rate cuts in developed markets led to fixed-income gains, CPPIB noted in the release.
Strong performance in infrastructure and credit investments further bolstered results, although foreign exchange had an overall negative effect due to the appreciation of the Canadian dollar against the U.S. dollar, CPPIB added in the release.
