The Canada Pension Plan Investment Board (CPPIB) is revamping its private equity strategy, which focuses on high-growth companies, after experiencing mixed results. CPPIB’s growth equity group holds stakes in approximately 30 companies, primarily within the technology sector, including artificial intelligence and financial technology. After a period of significant dealmaking in 2021 and 2022, the team has substantially reduced the rate of new direct investments following a period of soft returns. The Canada Pension Plan Investment Board is Canada’s largest pension fund investing funds to secure the financial future of over 21 million contributors and beneficiaries. CPPIB manages those funds for the long term, diversifying across geographies, asset classes and sectors.
In recent months, CPPIB has shifted some assets into a different portfolio and intends to rely more on third-party managers to identify new investment opportunities. While the fund invested in about four firms recently, including a $US75 million investment in OpenAI and participation in Wealthsimple Financial’s latest equity round, it has made only a few other direct investments in the growth equity category since the start of 2024.
The fund’s San Francisco office is slated to close at the end of this year, and the new head of growth equity, Max Miller, has relocated to Toronto, according to a spokesperson. CPPIB’s website indicates that there are three other managing directors within the group. Lisa Conway recently joined the pension fund, transferring from the Ontario Municipal Employees Retirement System.
