INSTITUTIONAL INVESTMENT REPORTER
PUBLISHED NOVEMBER 12, 2021
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John Graham, the CEO of the Canada Pension Plan Investment Board, in Toronto, on March 22.
John Graham, the CEO of the Canada Pension Plan Investment Board, in Toronto, on March 22.
FRED LUM/THE GLOBE AND MAIL
Canada Pension Plan Investment Board has reported a 3.8-per-cent return for the quarter ended Sept. 30, helping it post the best long-term return in its history.
CPPIB’s annualized return for the past 10 years, net of its investment costs, was 11.6 per cent, the national pension fund manager said Friday. At no other time has the 10-year performance figure been higher, it said.
The latest quarterly return outpaced the S&P Global LargeMidCap Index’s Canadian-dollar return of 0.9 per cent in the quarter. When CPPIB releases annual results, it uses that stock index for 85 per cent of its “reference portfolio,” a comparison to passive investing that demonstrates how much value it has added through its investing efforts. (Canadian bonds, as measured by the FTSE Canada All Government Bond Index, make up the rest.)
CPPIB’s reference portfolio had a return of roughly 0.6 per cent in the quarter, The Globe and Mail calculates.
CPPIB closed the quarter with assets of $541.5-billion, compared with $519.6-billion at the end of the previous quarter. The $21.9-billion increase consisted of $19.8-billion in net income after costs and $2.1-billion in net new Canada Pension Plan contributions.
The Canada Pension Plan, founded in 1966, is the primary national retirement program for working Canadians. The government created CPPIB in 1999 to professionally manage the plan’s money. Over time, CPPIB has embraced active management and its blend of stocks, bonds, real estate, infrastructure, private equity and other specialized investments has outperformed public markets and its reference portfolio.
In the early days of the COVID-19 pandemic, when global markets tumbled, the CPPIB asset mix blunted the pain, and the pension fund manager lost much less money than an ordinary investor in the stock market. However, CPPIB often trails when public stock markets rise rapidly, as they did in several recent quarters when investors shook off their pandemic fears.
While CPPIB reports quarterly, it points to its multigenerational mandate and likes to emphasize the long-term returns, which made Friday’s announcement particularly satisfying. CPPIB previously posted 10-year returns of 11.1 per cent in the quarters ended March 31, 2019 and the quarter ended in June of this year.
CPPIB does not release quarterly investment returns for each investment department, but offered general comments, saying there was an increase in the value of all private-equity programs, real assets and credit investments. Its stock market portfolios were “flat,” it said.
A rebound in the U.S. dollar against the Canadian dollar boosted returns. While CPPIB reports its results in Canadian dollars, it holds just 16 per cent of its assets in Canada as of Sept. 30. (When the loonie rises, the Canadian-dollar return of foreign investments is smaller.) CPPIB has 35.2 per cent of its assets in the United States and 24.1 per cent of its assets in Asia, with the rest elsewhere in the world.
Just over half the CPPIB portfolio as of Sept. 30 was in equities, both public and private, with the balance in bonds, debt and real assets such as infrastructure and real estate.
During the quarter, CPPIB appointed Deborah Orida as its first chief sustainability officer, responsible for its approach to environmental, social and governance (ESG) initiatives, with a focus on climate change. She will maintain her role as global head of real assets.
Canada Pension Plan Investment Board has reported a 3.8-per-cent return for the quarter ended Sept. 30, helping it post the best long-term return in its history.
CPPIB’s annualized return for the past 10 years, net of its investment costs, was 11.6 per cent, the national pension fund manager said Friday. At no other time has the 10-year performance figure been higher, it said.
The latest quarterly return outpaced the S&P Global LargeMidCap Index’s Canadian-dollar return of 0.9 per cent in the quarter. When CPPIB releases annual results, it uses that stock index for 85 per cent of its “reference portfolio,” a comparison to passive investing that demonstrates how much value it has added through its investing efforts. (Canadian bonds, as measured by the FTSE Canada All Government Bond Index, make up the rest.)
CPPIB’s reference portfolio had a return of roughly 0.6 per cent in the quarter, The Globe and Mail calculates.
CPPIB closed the quarter with assets of $541.5-billion, compared with $519.6-billion at the end of the previous quarter. The $21.9-billion increase consisted of $19.8-billion in net income after costs and $2.1-billion in net new Canada Pension Plan contributions.
The Canada Pension Plan, founded in 1966, is the primary national retirement program for working Canadians. The government created CPPIB in 1999 to professionally manage the plan’s money. Over time, CPPIB has embraced active management and its blend of stocks, bonds, real estate, infrastructure, private equity and other specialized investments has outperformed public markets and its reference portfolio.
In the early days of the COVID-19 pandemic, when global markets tumbled, the CPPIB asset mix blunted the pain, and the pension fund manager lost much less money than an ordinary investor in the stock market. However, CPPIB often trails when public stock markets rise rapidly, as they did in several recent quarters when investors shook off their pandemic fears.
While CPPIB reports quarterly, it points to its multigenerational mandate and likes to emphasize the long-term returns, which made Friday’s announcement particularly satisfying. CPPIB previously posted 10-year returns of 11.1 per cent in the quarters ended March 31, 2019 and the quarter ended in June of this year.
CPPIB does not release quarterly investment returns for each investment department, but offered general comments, saying there was an increase in the value of all private-equity programs, real assets and credit investments. Its stock market portfolios were “flat,” it said.
A rebound in the U.S. dollar against the Canadian dollar boosted returns. While CPPIB reports its results in Canadian dollars, it holds just 16 per cent of its assets in Canada as of Sept. 30. (When the loonie rises, the Canadian-dollar return of foreign investments is smaller.) CPPIB has 35.2 per cent of its assets in the United States and 24.1 per cent of its assets in Asia, with the rest elsewhere in the world.
Just over half the CPPIB portfolio as of Sept. 30 was in equities, both public and private, with the balance in bonds, debt and real assets such as infrastructure and real estate.
During the quarter, CPPIB appointed Deborah Orida as its first chief sustainability officer, responsible for its approach to environmental, social and governance (ESG) initiatives, with a focus on climate change. She will maintain her role as global head of real assets.
New investments in the latest quarter included:Committing to provide up to US$500-million to Prodigy Finance, a provider of postgraduate student loans for international students attending top schools.Putting US$600-million into the Baring Asia Private Equity Fund VIII, LP, which will focus on control buyouts and minority growth investments.Joining a consortium to buy CeramTec, a maker of high-performance ceramic components. CPPIB’s contribution is about €800-million ($1.15-billion) for a 50-per-cent stake in the company.
CPPIB's total assets rise by $21.9 billion in three months
While assets rose, growth was the lowest in four quarters
Author of the article:
Reuters
Maiya Keidan
Publishing date:Nov 12, 2021
The Canada Pension Plan Investment Board benefited from foreign exchange gains amid the rebound in the U.S. dollar against the Canadian dollar while public equity investments were flat.
PHOTO BY GETTY IMAGES FILES
Article content
TORONTO — The Canada Pension Plan Investment Board’s (CPPIB) total assets rose by $21.9 billion in the three months to Sept. 30, helped by positive investment gains of 3.8 per cent, the country’s biggest pension fund manager said on Friday.
While assets rose 4.2 per cent, growth was slightly lower than the 4.5 per cent increase in the preceding three months and the lowest in four quarters, according to an analysis by Reuters.
Net assets increased to a record $541.5 billion at the end of CPPIB’s second fiscal quarter, from the previous quarter, primarily driven by gains in its private equity investments, real assets and credit businesses, CPPIB said in a statement.
CPPIB, which is the only one of Canada’s top pensions to provide quarterly performance data, also benefited from foreign exchange gains amid the rebound in the U.S. dollar against the Canadian dollar while public equity investments were flat.
Article content
TORONTO — The Canada Pension Plan Investment Board’s (CPPIB) total assets rose by $21.9 billion in the three months to Sept. 30, helped by positive investment gains of 3.8 per cent, the country’s biggest pension fund manager said on Friday.
While assets rose 4.2 per cent, growth was slightly lower than the 4.5 per cent increase in the preceding three months and the lowest in four quarters, according to an analysis by Reuters.
Net assets increased to a record $541.5 billion at the end of CPPIB’s second fiscal quarter, from the previous quarter, primarily driven by gains in its private equity investments, real assets and credit businesses, CPPIB said in a statement.
CPPIB, which is the only one of Canada’s top pensions to provide quarterly performance data, also benefited from foreign exchange gains amid the rebound in the U.S. dollar against the Canadian dollar while public equity investments were flat.
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As of Sept. 30, CPPIB allocated 27.7 per cent to public equity, 26.1 per cent to private equity, 15 per cent to credit, 8.5 per cent to real estate, 8.2 per cent to infrastructure, 3.8 per cent to sustainable energy and 10.7 per cent to government bonds, cash and absolute return strategies.
The diversified portfolio helped CPPIB to achieve a record 11.6 per cent, annualized 10-year net return at the end of the last quarter, CPPIB President and CEO John Graham said.
Significant transactions in the past quarter included a new joint venture with Round Hill Capital for investment in purpose-built student accommodation across continental Europe, allocating 475 million euros initially.
CPPIB also committed 200 million euros in financing to U.S. and German real estate owner RFR and 50 million euros to Nordic-based private equity manager Summa Equity.
© Thomson Reuters 2021
CPP Investments Net Assets Total $541.5 Billion at Second Quarter Fiscal 2022
The base CPP account ended its second quarter of fiscal 2022 on September 30, 2021, with net assets of $531.9 billion, compared to $511.5 billion at the end of the previous quarter. The $20.4 billion increase in assets consisted of $19.6 billion in net income after all costs and $0.8 billion in net base CPP contributions. The base CPP account achieved a 3.8% net return for the quarter.
The additional CPP account ended its second quarter of fiscal 2022 on September 30, 2021, with net assets of $9.6 billion, compared to $8.1 billion at the end of the previous quarter. The $1.5 billion increase in assets consisted of $193 million in net income after all costs and $1.3 billion in net additional CPP contributions. The additional CPP account achieved a 2.3% net return for the quarter.
The additional CPP, which began in 2019, differs in contributions, investment profile and risk targets from the base CPP because of the way each part is designed and funded. As such, we expect the investment performance of each part to be different.
Long-Term Sustainability
Every three years, the Office of the Chief Actuary of Canada conducts an independent review of the sustainability of the CPP over the next 75 years. In the most recent triennial review published in December 2019, the Chief Actuary reaffirmed that, as at December 31, 2018, both the base and additional CPP continue to be sustainable over the 75-year projection period at the legislated contribution rates.
The Chief Actuary's projections are based on the assumption that, over the 75 years following 2018, the base CPP account will earn an average annual rate of return of 3.95% above the rate of Canadian consumer price inflation, after all costs. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.38%.
The Fund, combining both the base CPP and additional CPP accounts, achieved 10-year and five-year annualized net real returns of 9.7% and 9.0%, respectively
Alain Carrier, Senior Managing Director and Head of International, left the organization to become CEO of a global private equity firm. Geoffrey Rubin, Senior Managing Director and Chief Investment Strategist, has assumed oversight for international operations on an interim basis.
Corporate development
Appointed Deborah Orida as our first Chief Sustainability Officer (CSO), responsible for our enterprise-wide approach to ESG initiatives, with a focus on climate change. As CSO, Ms. Orida will lead the execution of a roadmap for the organization to prudently navigate the Fund's sustainability efforts as the world economy transitions to address climate change. Ms. Orida will maintain her role as Senior Managing Director and Global Head of Real Assets.
Second-Quarter Investment Highlights:
Active Equities
Invested US$300 million in Sinch to support the company's US$1.9 billion acquisition of Pathwire, a leading cloud-based email delivery platform, bringing our ownership in Sinch to 2%.
Committed US$50 million in Planet Labs, an earth observation and data insights company, through participation in the expanded private investment in public equity (PIPE) transaction in dMY Technology Group, Inc. IV.
Made a follow-on investment of US$50 million in the $1.6 billion Series H funding of Databricks, a data, analytics and AI company based in San Francisco. We previously invested US$65 million in the company's $1 billion Series G funding in February 2021.
Invested US$350 million in Advanced Drainage Systems, a leading provider of water management solutions for use in the construction and agriculture marketplace, increasing our ownership stake in the company to 4.6%.
Invested C$198 million in Jazz Pharmaceuticals, a biopharmaceutical company that develops, in-licenses and commercializes drugs for the treatment of neurological disorders and oncology.
Credit Investments
Committed to provide up to US$500 million in financing to Prodigy Finance, a provider of postgraduate student loans for international students attending top schools.
Committed US$300 million to Blackstone Life Sciences Yield, which will invest in royalty streams on FDA-approved products and structured credit opportunities with biotechnology, pharmaceutical and MedTech partners.
Committed C$115 million to the financing of a portfolio of late-stage construction toll-roads owned by Dilip Buildcon Limited, a publicly traded developer and operator of infrastructure assets in India.
Completed a US$100 million investment in the debt financing for OTG Management, an airport concessions operator with locations across 10 airports in North America.
Committed HK$700 million (C$112 million) to an investment in the first lien term loan of Brooklyn, a Hong Kong-based streetwear apparel company that designs, sources and retails the BAPE and AAPE brands.
Committed US$325 million to Angelo Gordon's Essential Housing Fund II, a fund designed to provide off-balance sheet financing for homebuilders to enable them to assemble development-ready land. Angelo Gordon is a U.S. credit and real estate investor.
Private Equity
Committed US$200 million to Clearlake Capital Partners VII. Clearlake is an investment firm operating integrated businesses across private equity, credit and other related strategies.
Committed US$325 million to Anchor Equity Partners Fund IV, a Korean mid-market PE firm focused on control-oriented consolidation investments and significant minority growth stage opportunities.
Committed US$600 million to the Baring Asia Private Equity Fund VIII, L.P. Baring Private Equity Asia is a pan-Asian private equity investment firm focusing on control buyouts and minority growth investments.
Committed US$350 million to Carlyle Partners Fund VIII. Carlyle Partners is a U.S.-based private equity manager focused on buyout and growth equity opportunities.
Committed US$100 million to Kainos Capital Partners Fund III, L.P. Kainos is a lower middle-market manager focused on investing in the food and consumer staples industries.
Invested US$120 million into Eruditus, an Indian Ed-Tech company that partners with top-tier universities worldwide to deliver online short courses and other programs to a global learner base, resulting in a 3.8% stake in the company.
Invested US$35 million in Laronde's $440 million Series B financing to advance the development of its eRNA platform and a broad range of programs across a number of therapeutic categories.
Agreed to jointly acquire CeramTec, a leading global MedTech business specializing in critical high-performance ceramic components, alongside BC Partners. Our capital contribution in CeramTec will be approximately €800 million for a 50% stake in the company.
Invested US$15 million in QCraft's US$100+ million Series A+ funding round. QCraft is an autonomous vehicle company.
Invested INR 5,950 million (C$98 million) for a 24% stake in the carve-out Zenex Animal Health India Private Limited, the animal health division of Cadila Healthcare that manufactures and sells animal health products for livestock and poultry.
Real Assets
Entered into a joint venture with CSI Properties in Hong Kong to redevelop a mixed-use real estate project comprising residential and commercial spaces in Kowloon, Hong Kong with an equity commitment of C$169 million.
Asset Dispositions:
Sold our 2.3% stake in SBI Life Insurance Company in India. Net proceeds from the sale were approximately C$463 million. We initially invested in the company in 2017.
Sold our stake in Velvet Energy, a privately held light-oil Montney producer with operations in north-west Alberta. Net proceeds from the sale were C$183 million. We initially invested in Velvet Energy in 2017.
Transaction Highlights Following the Quarter:
Committed €50 million to Summa Equity III. Summa Equity is a Nordic-based private equity manager with a mandate to invest in companies that address global challenges.
Entered a new joint venture with Round Hill Capital for investment in the purpose-built student accommodation sector across continental Europe. Our initial equity allocation will be €475 million.
Committed JPY 110 billion (C$1.3 billion) to the newly established GLP Japan Development Partners IV, our fourth modern logistics partnership in Japan with GLP.
Announced a BRL 1.5 billion (C$340 million) investment to support the asset consolidation and public listing of several Brazilian energy assets through two independent transactions to create one of Brazil's largest energy producers and traders, in partnership with Votorantim S.A.
Provided over €200 million in financing to RFR, an experienced real estate owner and operator working across the United States and Germany.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2021, the Fund totalled $541.5 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.
Français
NEWS PROVIDED BY Canada Pension Plan Investment Board
Nov 12, 2021, 08:09 ET
All figures in Canadian dollars unless otherwise noted.
Second-Quarter Highlights:
$19.8 billion in net income generated for the Fund
Record 10-year annualized net return of 11.6%
Strong gains from private equity programs
TORONTO, Nov. 12, 2021 /CNW/ - Canada Pension Plan Investment Board (CPP Investments) ended its second quarter of fiscal 2022 on September 30, 2021, with net assets of $541.5 billion, compared to $519.6 billion at the end of the previous quarter.
The $21.9 billion increase in net assets for the quarter consisted of $19.8 billion in net income after all CPP Investments costs and $2.1 billion in net Canada Pension Plan (CPP) contributions.
The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved 10-year and five-year annualized net nominal returns of 11.6% and 11.3%, respectively. For the quarter, the Fund returned 3.8%, net of all CPP Investments costs.
For the six-month fiscal year-to-date period, the Fund increased by $44.3 billion consisting of $37.5 billion in net income after all CPP Investments costs, plus $6.8 billion in net CPP contributions. For the period, the Fund returned 7.5%, net of all CPP Investments costs.
"CPP Investments delivered strong results this quarter to achieve a record 10-year annualized net return of 11.6%, reflecting the benefits of diversification and investment selection," said John Graham, President & Chief Executive Officer. "As we emerge from the impact of the global pandemic, our teams continue to execute across the organization to deliver sustainable long-term growth for the Fund."
The Fund's quarterly results were driven by an increase in the value of all private equity programs, contributions from real assets and credit investments and gains from foreign exchange as the Fund benefitted from a rebound in the U.S. dollar against the Canadian dollar. Public equity active programs were flat.
CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, taking into account the factors that may affect the funding of the CPP and the CPP's ability to meet its financial obligations. The CPP is designed to serve today's contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments' performance compared to quarterly or annual cycles.
Fund 10- and Five-Year Returns1, 2, 3
(For the period ending September 30, 2021)
Investment Rate of Return
(Nominal)
Net Income4
10-Year Annualized
11.6%
$341.5 billion
Five-Year Annualized
11.3%
$218.0 billion
Fiscal 2022 YTD
7.5%
$37.5 billion
Performance of the Base and Additional CPP Accounts
NEWS PROVIDED BY Canada Pension Plan Investment Board
Nov 12, 2021, 08:09 ET
All figures in Canadian dollars unless otherwise noted.
Second-Quarter Highlights:
$19.8 billion in net income generated for the Fund
Record 10-year annualized net return of 11.6%
Strong gains from private equity programs
TORONTO, Nov. 12, 2021 /CNW/ - Canada Pension Plan Investment Board (CPP Investments) ended its second quarter of fiscal 2022 on September 30, 2021, with net assets of $541.5 billion, compared to $519.6 billion at the end of the previous quarter.
The $21.9 billion increase in net assets for the quarter consisted of $19.8 billion in net income after all CPP Investments costs and $2.1 billion in net Canada Pension Plan (CPP) contributions.
The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved 10-year and five-year annualized net nominal returns of 11.6% and 11.3%, respectively. For the quarter, the Fund returned 3.8%, net of all CPP Investments costs.
For the six-month fiscal year-to-date period, the Fund increased by $44.3 billion consisting of $37.5 billion in net income after all CPP Investments costs, plus $6.8 billion in net CPP contributions. For the period, the Fund returned 7.5%, net of all CPP Investments costs.
"CPP Investments delivered strong results this quarter to achieve a record 10-year annualized net return of 11.6%, reflecting the benefits of diversification and investment selection," said John Graham, President & Chief Executive Officer. "As we emerge from the impact of the global pandemic, our teams continue to execute across the organization to deliver sustainable long-term growth for the Fund."
The Fund's quarterly results were driven by an increase in the value of all private equity programs, contributions from real assets and credit investments and gains from foreign exchange as the Fund benefitted from a rebound in the U.S. dollar against the Canadian dollar. Public equity active programs were flat.
CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, taking into account the factors that may affect the funding of the CPP and the CPP's ability to meet its financial obligations. The CPP is designed to serve today's contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments' performance compared to quarterly or annual cycles.
Fund 10- and Five-Year Returns1, 2, 3
(For the period ending September 30, 2021)
Investment Rate of Return
(Nominal)
Net Income4
10-Year Annualized
11.6%
$341.5 billion
Five-Year Annualized
11.3%
$218.0 billion
Fiscal 2022 YTD
7.5%
$37.5 billion
Performance of the Base and Additional CPP Accounts
The base CPP account ended its second quarter of fiscal 2022 on September 30, 2021, with net assets of $531.9 billion, compared to $511.5 billion at the end of the previous quarter. The $20.4 billion increase in assets consisted of $19.6 billion in net income after all costs and $0.8 billion in net base CPP contributions. The base CPP account achieved a 3.8% net return for the quarter.
The additional CPP account ended its second quarter of fiscal 2022 on September 30, 2021, with net assets of $9.6 billion, compared to $8.1 billion at the end of the previous quarter. The $1.5 billion increase in assets consisted of $193 million in net income after all costs and $1.3 billion in net additional CPP contributions. The additional CPP account achieved a 2.3% net return for the quarter.
The additional CPP, which began in 2019, differs in contributions, investment profile and risk targets from the base CPP because of the way each part is designed and funded. As such, we expect the investment performance of each part to be different.
Long-Term Sustainability
Every three years, the Office of the Chief Actuary of Canada conducts an independent review of the sustainability of the CPP over the next 75 years. In the most recent triennial review published in December 2019, the Chief Actuary reaffirmed that, as at December 31, 2018, both the base and additional CPP continue to be sustainable over the 75-year projection period at the legislated contribution rates.
The Chief Actuary's projections are based on the assumption that, over the 75 years following 2018, the base CPP account will earn an average annual rate of return of 3.95% above the rate of Canadian consumer price inflation, after all costs. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.38%.
The Fund, combining both the base CPP and additional CPP accounts, achieved 10-year and five-year annualized net real returns of 9.7% and 9.0%, respectively
1
The negative balance of $9.0 billion in Cash & Absolute Return Strategies represents the net amount of financing through
derivatives and repurchase agreements, and the current net position from Absolute Return Strategies.
2
Includes assets such as premises and equipment and non-investment liabilities.
3
Includes $531.9 billion of base CPP and $9.6 billion of additional CPP.
Operational Highlights:
Executive announcement
The negative balance of $9.0 billion in Cash & Absolute Return Strategies represents the net amount of financing through
derivatives and repurchase agreements, and the current net position from Absolute Return Strategies.
2
Includes assets such as premises and equipment and non-investment liabilities.
3
Includes $531.9 billion of base CPP and $9.6 billion of additional CPP.
Operational Highlights:
Executive announcement
Alain Carrier, Senior Managing Director and Head of International, left the organization to become CEO of a global private equity firm. Geoffrey Rubin, Senior Managing Director and Chief Investment Strategist, has assumed oversight for international operations on an interim basis.
Corporate development
Appointed Deborah Orida as our first Chief Sustainability Officer (CSO), responsible for our enterprise-wide approach to ESG initiatives, with a focus on climate change. As CSO, Ms. Orida will lead the execution of a roadmap for the organization to prudently navigate the Fund's sustainability efforts as the world economy transitions to address climate change. Ms. Orida will maintain her role as Senior Managing Director and Global Head of Real Assets.
Second-Quarter Investment Highlights:
Active Equities
Invested US$300 million in Sinch to support the company's US$1.9 billion acquisition of Pathwire, a leading cloud-based email delivery platform, bringing our ownership in Sinch to 2%.
Committed US$50 million in Planet Labs, an earth observation and data insights company, through participation in the expanded private investment in public equity (PIPE) transaction in dMY Technology Group, Inc. IV.
Made a follow-on investment of US$50 million in the $1.6 billion Series H funding of Databricks, a data, analytics and AI company based in San Francisco. We previously invested US$65 million in the company's $1 billion Series G funding in February 2021.
Invested US$350 million in Advanced Drainage Systems, a leading provider of water management solutions for use in the construction and agriculture marketplace, increasing our ownership stake in the company to 4.6%.
Invested C$198 million in Jazz Pharmaceuticals, a biopharmaceutical company that develops, in-licenses and commercializes drugs for the treatment of neurological disorders and oncology.
Credit Investments
Committed to provide up to US$500 million in financing to Prodigy Finance, a provider of postgraduate student loans for international students attending top schools.
Committed US$300 million to Blackstone Life Sciences Yield, which will invest in royalty streams on FDA-approved products and structured credit opportunities with biotechnology, pharmaceutical and MedTech partners.
Committed C$115 million to the financing of a portfolio of late-stage construction toll-roads owned by Dilip Buildcon Limited, a publicly traded developer and operator of infrastructure assets in India.
Completed a US$100 million investment in the debt financing for OTG Management, an airport concessions operator with locations across 10 airports in North America.
Committed HK$700 million (C$112 million) to an investment in the first lien term loan of Brooklyn, a Hong Kong-based streetwear apparel company that designs, sources and retails the BAPE and AAPE brands.
Committed US$325 million to Angelo Gordon's Essential Housing Fund II, a fund designed to provide off-balance sheet financing for homebuilders to enable them to assemble development-ready land. Angelo Gordon is a U.S. credit and real estate investor.
Private Equity
Committed US$200 million to Clearlake Capital Partners VII. Clearlake is an investment firm operating integrated businesses across private equity, credit and other related strategies.
Committed US$325 million to Anchor Equity Partners Fund IV, a Korean mid-market PE firm focused on control-oriented consolidation investments and significant minority growth stage opportunities.
Committed US$600 million to the Baring Asia Private Equity Fund VIII, L.P. Baring Private Equity Asia is a pan-Asian private equity investment firm focusing on control buyouts and minority growth investments.
Committed US$350 million to Carlyle Partners Fund VIII. Carlyle Partners is a U.S.-based private equity manager focused on buyout and growth equity opportunities.
Committed US$100 million to Kainos Capital Partners Fund III, L.P. Kainos is a lower middle-market manager focused on investing in the food and consumer staples industries.
Invested US$120 million into Eruditus, an Indian Ed-Tech company that partners with top-tier universities worldwide to deliver online short courses and other programs to a global learner base, resulting in a 3.8% stake in the company.
Invested US$35 million in Laronde's $440 million Series B financing to advance the development of its eRNA platform and a broad range of programs across a number of therapeutic categories.
Agreed to jointly acquire CeramTec, a leading global MedTech business specializing in critical high-performance ceramic components, alongside BC Partners. Our capital contribution in CeramTec will be approximately €800 million for a 50% stake in the company.
Invested US$15 million in QCraft's US$100+ million Series A+ funding round. QCraft is an autonomous vehicle company.
Invested INR 5,950 million (C$98 million) for a 24% stake in the carve-out Zenex Animal Health India Private Limited, the animal health division of Cadila Healthcare that manufactures and sells animal health products for livestock and poultry.
Real Assets
Entered into a joint venture with CSI Properties in Hong Kong to redevelop a mixed-use real estate project comprising residential and commercial spaces in Kowloon, Hong Kong with an equity commitment of C$169 million.
Asset Dispositions:
Sold our 2.3% stake in SBI Life Insurance Company in India. Net proceeds from the sale were approximately C$463 million. We initially invested in the company in 2017.
Sold our stake in Velvet Energy, a privately held light-oil Montney producer with operations in north-west Alberta. Net proceeds from the sale were C$183 million. We initially invested in Velvet Energy in 2017.
Transaction Highlights Following the Quarter:
Committed €50 million to Summa Equity III. Summa Equity is a Nordic-based private equity manager with a mandate to invest in companies that address global challenges.
Entered a new joint venture with Round Hill Capital for investment in the purpose-built student accommodation sector across continental Europe. Our initial equity allocation will be €475 million.
Committed JPY 110 billion (C$1.3 billion) to the newly established GLP Japan Development Partners IV, our fourth modern logistics partnership in Japan with GLP.
Announced a BRL 1.5 billion (C$340 million) investment to support the asset consolidation and public listing of several Brazilian energy assets through two independent transactions to create one of Brazil's largest energy producers and traders, in partnership with Votorantim S.A.
Provided over €200 million in financing to RFR, an experienced real estate owner and operator working across the United States and Germany.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2021, the Fund totalled $541.5 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Facebook or Twitter.
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