The Canada Pension Plan Investment Board (CPP Investment Board) is one of the world’s largest institutional investors, managing hundreds of billions in assets for the Canada Pension Plan. As a global investment organization, the CPP Investment Board has offices around the world, including a major presence in New York City. In this article, we will analyze the cpp investment board’s activities and strategies in New York across various asset classes.
CPP Investment Board Focuses on Real Estate and Infrastructure Investments in New York
The CPP Investment Board has invested heavily in New York City real estate over the past decade. Major investments include a 45% stake in Manhattan West, a mixed-use complex near Hudson Yards, for $1.7 billion in 2017. CPP also owns stakes in prestigious office towers like 550 Madison Avenue. In infrastructure, CPP co-invested over $1 billion in 2017 to acquire a stake in Grupo Aeroportuario del Sureste, which operates airports in Mexico including Cancun, an important tourist gateway for New Yorkers.
CPP Investment Board Partnered with Global Private Equity Firms Based in New York
The cpp investment board has strategically partnered with several top-tier private equity firms based in New York to access PE deal flow. They committed over $1 billion to TPG Capital’s global funds in 2020. CPP also made significant commitments to KKR’s Americas and Asia private equity funds in recent years. The pension teamed up with Blackstone in 2019 to acquire a stake in Marquee Brands, the company behind celebrity lifestyle brands like Martha Stewart and Bruno Magli.
CPP Investment Board Opened New York Office to Expand Public Equities Investing
Unlike its real estate and private equity presence which is focused on specific investments, the CPP Investment Board’s new office in midtown Manhattan serves a broader purpose – to expand its global public equities investing capabilities. The New York office allows CPP’s portfolio managers to be closer to hundreds of U.S. public companies. Executives also cited New York’s role as a global financial hub with access to expert talent as a key factor in the location choice.
CPP Relies on External Asset Managers in New York for Hedge Fund Investments
Unlike private equity and real estate where CPP directly owns assets and stakes, its hedge fund portfolio is primarily managed through third-party asset managers based in New York. While not investing directly, the cpp investment board has placed billions with hedge funds like Citadel, Millennium Management, Point72 Asset Management and many others headquartered in New York City. The centralized access to top hedge fund talent makes New York an ideal hub for CPP’s hedge fund portfolio.
In summary, the CPP Investment Board has a substantial presence across major asset classes like real estate, infrastructure, private equity, public stocks, and hedge funds in New York City. New York offers unparalleled access to investment opportunities and talent which CPP leverages to drive returns for CPP contributors.