CDPQ plans to work with more partners and co-investors to manage private equity without expanding its team
Caisse de dépôt et placement du Québec (CDPQ) plans to increase collaboration with partners and third-party managers in its private equity investments, while continuing as a direct investor, according to Bloomberg.
Chief Executive Officer Charles Emond stated that as the fund grows, it's essential to partner with selected entities to manage the increased volume effectively.
He emphasized strengthening relationships with key partners and occasionally co-investing with external managers.
Private equity currently constitutes 19 percent of CDPQ's total portfolio, aligning with client expectations. To maintain this balance, the pension fund aims to be a net seller annually, preventing the asset class from expanding beyond the firm's capacity.
Emond noted the importance of balancing growth without significantly increasing staff numbers.
As of December 31, CDPQ manages $473bn in net assets. The organization intends to apply a similar partnership strategy to its credit and real estate portfolios, aiming to enhance liquidity.
In recent years, according to Institutional Investor, CDPQ has actively pursued partnerships to diversify its investments.
For instance, in 2020, CDPQ formed a US$300m partnership with Piramal Asset Management Private Limited to invest in private credit opportunities in India.
This collaboration focuses on providing credit solutions to companies across various sectors, including manufacturing and healthcare.
Additionally, CDPQ has committed to supporting emerging managers. The pension fund announced an additional investment of $250m over five years in the Québec Emerging Managers Program (QEMP), aiming to accelerate the development of emerging asset managers.
