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CPP Investments bets $1.2 billion in April-June quarter in India PE bets


Canada Pension Plan Investment Board (CPP Investments), Canada’s largest pension fund manager has agreed to invest $1.18 billion in India during the first quarter of 2023 fiscal at a time when asset managers in general, turned cautious towards taking large exposure.

CPP’s investments spread across sectors and include its $333 million exposure towards Sequoia’s tech-focused India fund, while many other investments were co-investments, according to its presentation. Some other notable bets include investment of C$700 million to CPP Investments’ Indian toll roads portfolio company IndInfravit Trust as part of a transaction to acquire five operating road concessions from Brookfield Asset Management.

“Financial markets experienced the most challenging first six months of the year in the last half century, and the Fund’s first fiscal quarter was not immune to such widespread decline. However, our active management strategy – diversified across asset classes and geographies – moderated the impact on the Fund, preserving investment value,” said John Graham, President & CEO. “The uncertain business and investment conditions we noted in the previous quarter continue, and we expect to see this turbulence persist throughout the fiscal year. Our resilient portfolio was designed to create value over the very long term as demonstrated by our continued strong 10-year net return, even as we expect to experience double-digit percentage losses one year in twenty.”

The Canadian fund committed $50 million Acko Tech & Services and a $34 mln in Kogta Financial as co-investments along with Multiples. It also made a $120 million co-investment alongside CVC Capital into Sajjan India Ltd and a $100 million in the unitranche loan for IGT Solutions.

The investments are coming at a time, when fund managers are generally turning cautious on fresh investments as uncertain macro economic scenario reduced appetite towards riskier assets. One of CPPP investment’s portfolio firm, Sequoia Capital,

Meanwhile, the Canadian asset manager ended its first quarter of fiscal 2023 on June 30, 2022, with net assets of $523 billion, compared to $539 billion at the end of the previous quarter, its presentation said. The $16 billion decrease in net assets for the quarter consisted of a net loss of $23 billion and $7 billion in net transfers from the Canada Pension Plan (CPP). In the five-year period up to and including the first quarter of fiscal 2023, CPP Investments has contributed $171 billion in cumulative net income to the Fund, and over a 10-year period it contributed $305 billion to the Fund on a net basis, its presentation said.

“Amidst rising concerns on the ability of global asset classes to deliver satisfactory returns over a longer tenure, global investors have placed their bets on the Indian infrastructure market time and again,” said Shivam Bajaj , Founder & CEO at Avener Capital.



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