India, a Major Destination of CPPIB Investments

Canada’s massive pension fund plans to invest up to a third of its funds in emerging markets over the next five years and India is an important destination. The Canada Pension Plan Investment Board (CPPIB) manages about 434.4 billion Canadian dollars ($329.75 billion) as of June 30. A bulk of its investments are in North America — around 34% of total assets are allocated in the United States — followed by Asia. “We expect to invest up to one third of the Fund in emerging markets by 2025 and India is a key component of that,” Suyi Kim, CPPIB’s Asia Pacific Head, said. “Our investments in India span different asset classes including infrastructure, real estate, public and private equities, funds and co-investments and credit,” Kim said, adding, “We see domestic consumption, technology and increasing demand for infrastructure to support the growth underpinning many of the themes and opportunities we look at in India.” CPPIB has an office in India. Some of its investments there include a stake in Kotak Mahindra Bank as well as $225 million to the India Resurgence Fund, which invests in distressed assets in the country. In December, CPPIB said it agreed to invest up to $600 million in India’s National Investment and Infrastructure Fund that included a $150 million commitment in NIIF’s Master Fund and co-investment rights of up to $450 million in future opportunities.