Canada’s pension fund co-invests about $204 million in India in June quarter

The Canada Pension Plan Investment Board co-invested about $204 million with its private equity partners in India during the June quarter, according to the pension fund’s quarterly filing.

CPPIB has invested in chemical company Sajjan India, insuretech unicorn Acko and non-bank lender Kogta Financial (India) Ltd, he added.

CVC Capital acquired the agrochemicals business of Sajjan India in February for $700 million, of which CPPIB paid $120 million to take a 17% stake, it said in its quarterly report on Thursday. CPPIB’s investment in Sajjan India has not been made public so far.

The pension fund acquired a 5% stake for $50 million in Acko and a 9% stake for $34 million in Kogta Financial (India) as part of the transactions carried out by Multiples Private Equity. CPPIB is a general partner of several funds managed by Multiples. She has also invested $333 million as a limited partner in Sequoia Capital’s fundraising in Asia-Pacific, including funds for China, India and Southeast Asia. However, he did not provide a breakdown by country. The pension fund also backed Baring Private Equity Asia with a $100 million loan investment for its $800 million buyout of IGT Solutions.

In June, Sequoia said it had raised $2.85 billion, including $2 billion for investments in India and $800 million for startups in Southeast Asia. Sequoia Capital has raised $9 billion across four funds to invest in China, Bloomberg reported last week. CPPIB also invested $150 million in NewQuest Capital’s latest fund. Secondary investor NewQuest Capital is owned by the TPG Group and typically invests a third of its corpus in India in private equity companies and funds.

Meanwhile, CPPIB reported a net loss of $23 billion and a negative return of 4.2% for the funds in the first quarter.

“Capital markets have had the toughest first six months of the year in the last half-century, and the fund’s fiscal first quarter has not been immune to the general decline. However, our active management strategy – diversified across asset classes and geographies – moderated the impact on the fund, preserving the value of the investment,” said John Graham, President and Chief Executive Officer. , in a press release.

“The uncertain business and investment conditions we saw in the prior quarter continue and we expect them to persist throughout the year. Our resilient portfolio is designed to create value at very term, as evidenced by our strong 10-year ongoing net return, although we expect to incur double-digit percentage losses.”

Results were driven by losses in public equity strategies, due to the general decline in stock markets, he added.

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Dolores W. Simon