* CPPIB to seek out assets put up for sale by Europe banks
* Managed assets C$152.8 bln vs C$140.1 bln yr ago
* Rise attributed to public equity and bond market returns
* CPPIB completed acquisition of Kinetic Concepts in quarter
By Pav Jordan
TORONTO, Feb 10 Canada Pension Plan
Investment Board, one of the world's top private equity and
infrastructure investors, is well positioned to acquire European
assets sold off by banks struggling to shore up their balance
sheets, its chief executive said on Friday.
Speaking to Reuters after the CPPIB reported rising assets
under management in the third quarter ended Dec. 31, CEO David
Denison said the European debt crisis is still the big question
mark hanging over the global economy.
"What we are seeing is a number of opportunities come out of
the banking system in Europe as the banks are starting to
address their capital issues, in part by selling assets that are
on their balance sheets," said Denison. "We see them anxious to
Since the 2008-09 financial crisis, CPPIB has made massive
infrastructure and private equity investments as many of its
CPPIB, which invests on behalf of 17 million beneficiaries
of Canada's national pension plan, participated in the
second-largest private equity transaction of 2011, the C$6.2
billion ($6.2 billion) acquisition of Kinetic Concepts, a U.S.
maker of medical devices used in wound care.
The joint deal with private equity firm Apax Partners and
PSP Investments - which manages investments for pension funds of
the Royal Canadian Mounted Police - was just one of a long list
of investments announced or completed in the latest quarter. It
marked the third consecutive year that CPPIB has participated in
one of the world's largest deals.
The overall asset mix at CPPIB as of Dec. 31 was 50.7
percent equities, 31.6 percent fixed income - either bonds,
money market securities, other debt and debt financing
liabilities - and 17.7 percent inflation-sensitive assets such
as real estate and infrastructure.
CPPIB has slowly boosted its exposure to private equity
investments, which accounted for 16.3 percent of its holdings at
the end of the third quarter.
"We expect in all likelihood to have more private equity as
we look ahead to 2012, certainly more real estate and more
infrastructure as well," said Denison.
SLIGHT RISE IN MANAGED ASSETS
The slim quarter-to-quarter rise in assets under management
in the three months to Dec. 31 reflected gains in public equity
and bond markets.
Assets under management in the quarter inched ahead to
C$152.8 billion from C$152.3 billion at the end of the second
quarter. The year-over-year gain was more substantial. At the
end of the third quarter last year, net assets amounted to
The fund plans to raise assets under management to about a
trillion dollars by 2050.