CANADA - The Canada Pension Plan Investment Board (CPPIB) has awarded two private equity mandates to Clairvest Group and General Motors Investment Management, worth a total of C$217m (US$140m).
Clairvest will receive a total of C$67m (US$43m) from the CPPIB, in the form of a private equity mandate and a direct stake in the Canadian merchant bank. The CPPIB will take a 10% stake in the bank for C$17m (US$11m), whilst the Clairvest Equity Partners Limited Partnership - a buyout fund - will receive C$50m (US$32m) over a five year period.
The CPPIB's other private equity mandate has been won by GM Investment Management, the car manufacturer's asset management division. The GM Capital Partners I will receive C$150m (US$97m) over the next five years. The GM Capital Partners I fund makes direct investments in buyout and venture capital opportunities, principally in the US.
The two mandates are part of the CPPIB's plan to commit up to 10% of its assets to private equity investments over the next five years. The two private equity mandates represent approximately 2% of the C$11bn (US$7bn) that the CPPIB has in assists under management. Ultimately, the CPPIB aims to commit up to 10% of its assets to private equity.
By Geoffrey Ho
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