The Canada Pension Plan Investment Board (CPPIB), which invests money from the Canada Pension Plan (CPP), has made a slew of investments worth $838 million (`7,035 crore ) in India during the first quarter of FY25. The fund manager has mostly made debt deals during the period.
According to a release on Wednesday, CPP Investments said it lent a $250 million loan to support the merger of two pharmaceutical contract development and manufacturing organisations, Cohance Lifesciences and Suven Pharma, both owned by Advent International.
It also provided a C$185 million ($135 million) Indian rupee-denominated loan to Enfinity Global to build 1.2 gigawatts of solar and wind power plants in the country. Based in the US, Enfinity Global is a renewable energy and sustainable services company with a 22.4-GW portfolio of solar, onshore wind, and battery storage assets.
Further, it invested $353 million in an ‘amend-and-extend’ of a senior secured term loan for Straive, a business process outsourcing company focused on education, data, and publishing verticals, with operations primarily in India and the Philippines.
It said it committed $100 million to Kedaara Capital Fund IV, which will focus on mid-market buyouts and minority growth investments in the country.
CPP also made some exits in the country during the quarter.
It sold its stake in One Paramount 1, a Grade A office development in Chennai. The net proceeds from the sale were $52 million. The initial investment was made in 2021 through a joint venture with RMZ Corp to hold and develop commercial real estate assets, it said.
It exited a nearly 6% stake in Delhivery, the largest third-party logistics service provider, realising about C$298 million ($217.5 million). The initial investment in the company was made in 2019.
CPP Investments ended Q1FY25 with net assets of $646.8 billion globally, compared to $632.3 billion at the end of the previous quarter. The $14.4 billion increase in net assets for the quarter consisted of $6.3 billion in net income and$8.1 billion in net transfers from the Canada Pension Plan, it said.
The Fund, which consists of the base CPP and additional CPP accounts, achieved a 10-year annualised net return of 9.1%. For the quarter, the Fund’s net return was 1.0%. Since its inception in 1999, and including the first quarter of fiscal 2025, CPP Investments has contributed $438.6 billion in cumulative net income to the Fund.
“Our diversified portfolio is performing as designed with gains across most asset classes,” said John Graham, President and CEO, CPP Investments. “We continue to prudently manage the Fund to deliver value to CPP contributors and beneficiaries over the very long term.”