The Canada Pension Plan Investment Board (CPPIB) announced two significant moves involving China and Hong Kong on Tuesday.
The board and Teachers’ Private Capital—the private equity arm of Ontario Teachers’ Pension Plan—have each invested US$200 million in FountainVest, a new private equity fund focused on investing in private enterprises in China.
“This investment in China illustrates the importance of the new office and underscores the CPP Investment Board’s commitment to the region,” says CPPIB president and CEO David Denison. “With this commitment, the CPP Investment Board now has over C$1 billion committed to private equity and real estate investments in Asia.”
FountainVest’s executive team is made up of experienced Chinese investors with a presence in Shanghai and Hong Kong.
Separately, the CPPIB announced plans to open its first international office in Hong Kong next month in an effort to focus on Asian investment opportunities.
Denison portrays the move to Hong Kong as a way to gain a foothold in Southeast Asia. “We chose Hong Kong as our first overseas office because we believe the long-term growth opportunities in the region are compelling and are aligned with our organization’s long-term investment horizon,” he explains. “Hong Kong is the recognized financial hub of Asia. Our presence in this exciting and vibrant market will allow us to build and strengthen relationships with new and existing investment partners in the region as well as provide a window to the expanding investment markets in Asia.”
CPPIB’s Hong Kong team will be focused initially on private equity and real estate investment opportunities in China, Hong Kong, Japan, South Korea, and Taiwan.
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