Canada Pension Plan Investment Board (CPPIB) has completed a secondary transaction to acquire a portfolio of food assets through a special purpose vehicle from the HM Capital Sector Performance Fund and related co-investors for $468 million.
CPPIB will also commit $138 million to a newly-formed private equity fund, Kainos Capital Partners. The Food and Consumer Products team of HM Capital, led by Andrew Rosen, will manage both the assets that CPPIB has acquired as well as manage the Kainos Capital fund, focusing on investments in the food sector.
“We are excited to complete another significant and innovative transaction in the secondary private equity market,” said André Bourbonnais, Senior Vice-President, Private Investments, CPPIB. “This was a unique opportunity for us to partner with one of the most successful food investment franchises and purchase a portfolio of well-managed quality food companies, each with market-leading positions. We look forward to partnering with Kainos Capital in creating value over the long term for these assets and the new Kainos fund.”
The Canada Pension Plan Investment Board invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. The board is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. The CPPIB is headquartered in Toronto, with offices in London and Hong Kong (www.cppib.ca).
“As one of the largest and most active participants in the secondary private equity market, CPPIB has invested over $5 billion in the past five years. We expect to deploy significant amounts of additional capital in this market over the next five years,” said Mr. Bourbonnais. “We will continue to leverage our comparative advantages as a long-term investor with deep internal capabilities to provide solutions to complex transactions.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-5-13