Canada Pension Eyes Corporate India

The Canada Pension Plan Investment Board (CPPIB) – the entity that manages assets for Canada’s biggest pension plan – has made a flurry of investments in India-based corporations over the past few years. And the flow of pension money to India isn’t likely to slow down – the country is a “key” part of CPPIB’s long-term plan, according to a CPPIB official. More details from Bloomberg:

Toronto-based Canada Pension Plan Investment Board […] is planning to add to the $1.5 billion it has already poured into the South Asian country since 2010, said Mark Machin who oversees its international investments division. “India is a key long-term growth market for CPPIB,” Machin said in an e-mail. “We will continue to seek investment opportunities which may include direct investments,” and will seek “smart” local partners, he said, without elaborating. […] “I can see many pension and sovereign funds coming to India,” said Khushru Jijina, managing director of Mumbai-based Piramal Fund Management Pvt., which has a $500 million realty joint venture with CPPIB. “Basically, the big boys with patient money who want to play the 8-10 year game are coming.” The Canadian pension fund, which made its first India investment in 2010, followed that up with three more in the past year. It invested $200 million in an alliance with construction conglomerate Shapoorji Pallonji Group in November last year followed by $250 million in a venture with billionaire Ajay Piramal-owned Piramal Enterprises Ltd. (PIEL) for debt financing of residential projects in February. The third was $332 million in L&T Infrastructure Development Projects Ltd. in June.

CPPIB manages $206 billion in assets for the Canada Pension Plan.   Photo by sandeepachetan.com travel photography via Flickr CC License