Pension funds typically have a mediated relationship with the private equity industry, investing money with managers that handle the deal-making. But as a $6 billion deal on Monday showed, one pension fund in Canada is a buyout player in its own right.
The Canada Pension Plan Investment Board, with about $185 billion under management, often flexes its own deal-making muscle with direct investments alongside private equity firms. Teaming up with Ares Management, it was a lead buyer on Monday of the Neiman Marcus luxury retail chain.
Even when it invests in funds managed by private equity firms, the Canadian pension plan often exerts its influence. One way it does so is by choosing to invest in certain “emerging” managers that are on the smaller side but have the potential to grow, Jim Fasano, the head of private equity funds for the pension plan, told the digital publication Privcap in a video interview.
“We like to think of ourselves as a deeper partner,” Mr. Fasano said in the interview.
The full interview is at PrivCap’s Web site.