CPPIB notches 10 pct return, eyes infrastructure, private equity deals

Thu May 16, 2013 1:59pm EDT
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* Fund's 10.1 pct investment return takes assets to C$183.3 billion

* Sees opportunities in global infrastructure, private equity

* Says scale, sophistication will win deals rivals can't handle

By Andrea Hopkins

TORONTO, May 16 (Reuters) - The Canada Pension Plan Investment Board, one of the world's biggest dealmakers, said a glut of cheap capital may mean it makes fewer big purchases in 2014, but it sees big opportunities in global infrastructure and private equity in the months ahead.

CPPIB, which manages Canada's national pension fund, said on Thursday its assets rose to a record C$183.3 billion ($180.12 billion) at the end of fiscal 2013, as its investment portfolio returned 10.1 percent for the year ended March 31.

Chief Executive Mark Wiseman said CPPIB may be slightly less active in dealmaking in the coming year because there is a lot of capital flowing globally and prices are up, but he said the fund will use its scale and long investment horizon to win deals that are too big and complex for competitors.

"The reality is today there is a lot of capital, and assets are fairly priced, and so we're being patient," Wiseman told Reuters following the release of the fund manager's fiscal 2013 results. "But that doesn't mean that there are not opportunities out there."

The fund struck 87 global deals - many as part of a consortium - in fiscal 2013, including 36 deals worth more than C$200 million.   Continued...