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EQT, Trustar and others get backing from the Canada Pension Plan Investment Board

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EQT and Trustar are among the latest firms to get backing from the Canada Pension Plan Investment Board.

The €77bn-managing EQT is is currently out fundraising Fund X targeting €20bn with a €21.5bn hard cap. It is between 5% and 10% committed after agreeing to buy Investcorp’s stake in talent and entertainment business United Talent Agency last month.

It beat its hard cap to closed Fund IX on April 2021 after successfully navigating the Covid-affected capital raising market.

If it reaches its goal, EQT X will be double the size of the firm’s eighth flagship fund, which it closed on €10.75m in early 2018.

The buyout house is also eyeing €5bn for a new longer-hold, lower risk sustainable infrastructure fund with a focus on downside protection.

The pension fund had also committed $100m to Trustar Capital V.

The CITIC Capital affiliate focuses on control-oriented buyouts in Greater China.

It was said in May to be eyeing $3.5bn for its fifth China buyout fund. If successful, it will add another 25% to the already massive $2.8bn predecessor fund IV.

The firm is also looking to raise $250m for a debut growth vehicle, according to AVCJ.

It closed Fund III on $1.5bn in 2017.

The Canada Pension Plan recorded a net assets of $523bn as of June 30, compared to $539bn at the end of the previous quarter.

CPP Investments has contributed $171bn in cumulative net income to the Fund in the past five years, achieving a five year annualized returns of 8.7%.

For the quarter, the fund made a 4.2% loss.

CPP said the quarterly results were driven by the losses in public equity strategies while private equity, credit and real estate contributed modestly to the losses in the quarter.

John Graham, president & CEO, said, “Financial markets experienced the most challenging first six months of the year in the last half century, and the Fund’s first fiscal quarter was not immune to such widespread decline. However, our active management strategy – diversified across asset classes and geographies – moderated the impact on the Fund, preserving investment value.

“The uncertain business and investment conditions we noted in the previous quarter continue, and we expect to see this turbulence persist throughout the fiscal year. Our resilient portfolio was designed to create value over the very long term as demonstrated by our continued strong 10-year net return, even as we expect to experience double-digit percentage losses one year in twenty.”

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