(March 5, 2013) – Canada Pension Plan Investment Board (CPPIB) has closed on a $468 million deal to buy a portfolio of largely food assets from HM Capital Partners’ Performance Fund and its co-investors.
CPPIB, which manages C$172.6 billion in public pension assets, has set up a special vehicle through which to acquire the portfolio, according to the fund.
Furthermore, the much-lauded Canadian fund has also committed $138 million to bankroll a new food-focused private equity fund, Kainos Capital. Kainos has invested in–and occasionally overhauled–scores of high-profile brands, including Cadbury, Swanson, Chef Boyardee, and Del Monte.
Both the food portfolio and Kainos will be managed by Andrew Rosen, a partner at HM Capital and the Dallas-based private equity firm’s head of food and consumer products. “We are excited to complete another significant and innovative transaction in the secondary private equity market,” said Andre Bourbonnais, CPPIB’s senior vice-president of private investments, in a statement. “This was a unique opportunity for us to partner with one of the most successful food investment franchises and purchase a portfolio of well-managed quality food companies, each with market-leading positions.”
Bourbonnais indicated that the Canadian pension giant is committed for the long term to partnering with Rosen and Kainos.
Despite having just dropped over half a billion dollars into the food and consumer products sector, he also made clear that CPPIB pockets isn’t done with private equity investments.
“As one of the largest and most active participants in the secondary private equity market, CPPIB has invested over $5 billion in the past five years,” Bourbonnais said. “We expect to deploy significant amounts of additional capital in this market over the next five years. We will continue to leverage our comparative advantages as a long-term investor with deep internal capabilities to provide solutions to complex transactions.”