THE CLAIRE FOSS JOURNAL

PM'S JETSET BUDDY GETS 150 MILLION FROM CPP

CPP board invests in Onex fund, specialty funds

Dec 18, 2003

The Canada Pension Plan Investment Board is entrusting $150 million (U.S.) to a fund managed by Onex Corp., and also announced yesterday it has made substantial commitments to two other asset managers.

The CPP board, which administers the non-bond investments of the federal pension fund, said it will invest $150 million in the new Onex Partners LP fund.

Onex, a Toronto-based car-parts-to-cinemas conglomerate controlled by financier Gerald Schwartz, said Nov. 26 that investors had committed $1 billion to the fund, which "will provide committed capital for future Onex-sponsored acquisitions."

The CPP Investment Board also said it is placing $100 million (Canadian) with Macquarie Essential Assets Partnership, managed by a unit of the Australian-based Macquarie Group. It will invest in pipelines, electricity lines and other infrastructure, primarily in Canada. The CPP board said this is its first commitment to an infrastructure fund.

Another $100 million (U.S.) of federal pension money will go to TPG Partners IV, a Texas Pacific Group fund focusing on buyouts in the U.S. and western Europe.

"Private market investments remain an important part of our long-term investment strategy and these new commitments continue our program of diversifying the total CPP portfolio," stated John MacNaughton, president of the CPP Investment Board.

From Canadian Press