CPPIB's India portfolio touches $22 billion in FY25

The Canada Pension Plan Investment Board (CPPIB), operating as CPP Investments, saw its India portfolio touch a record C$30 billion (about $22.7 billion) in net assets in 2024-25, showed its latest annual report.

Its key investments of the fiscal year were $100 million (C$137 million) in private equity fund Kedaara Capital's new fund and an undisclosed amount in venture capital firm Accel’s eighth fund.

It also infused $100 million (C$137 million) alongside PE firm PAG for about a 14% stake in the combined entity of Manjushree Technopack and Pravesha.

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It invested another $100 million (C$137 million) alongside EQT Private Capital Asia for a 5% stake in Perficient Inc., $8 million (C$11 million) in edtech startup Eruditus, and nearly $244 million (C$335 million) in National Highways Infra Trust. 

The investment company had assets under management (AUM) worth C$28 billion (about $20.3 billion) in India in 2023-24.

It also made handsome gains during the year. It earned nearly $220 million (C$298 million) in net proceeds from the sale of its 6% stake in logistics company Delhivery, $52 million (C$71.5 million) in net proceeds from its stake sale in One Paramount 1, and an undisclosed return from a partial stake sale in National Stock Exchange of India. 

Its credit investments in India also crossed over $800 million (C$1.1 billion), including a $353 million (C$486 million) transaction in the extension of a senior secured loan to business outsourcing company Straive; $250 million (C$344 million) in a loan facility to Cohance Lifesciences and Suven Pharma, combined and owned by Advent International; and a $185 million (C$255 million) investment into an India rupee dominated debt facility for the US-based Enfinity Global.

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Overall, it ended the fiscal year with net assets of C$714.4 billion across all geographies, compared to C$632.3 billion last fiscal year. The C$82.1 billion increase in net assets consisted of C$59.8 billion in net income, one of its highest in history, and the remaining in net transfers.

“The fund’s performance during the fiscal year was strong, with all investment departments contributing to one of the highest levels of annual net income in our history, despite market headwinds in the final quarter,” said its president and chief executive, John Graham. The fund generated a net return of 9.3% for the fiscal year.

With strong returns across multiple asset classes, the strengthening of other countries against the Canadian dollar was a significant contributor to the investment firm’s gains through the year. 

CPP Investments noted that public equities, especially in the US and China, delivered gains despite geopolitical and trade-related headwinds in the March quarter. 

Other investments in private equities, infrastructure, and credit, which benefited from tightening credit spreads, also contributed positively to the returns.

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While CPP does not disclose individual country investments by the year, the US was its highest-performing market, with a net return of 12.7% year-on-year, followed by Europe (8.8%), Canada (8.1%), and Asia Pacific (7.3%). 

However, it booked a loss of 1.6% in Latin America due to a weak Brazilian real against the Canadian dollar and losses in Brazilian public equity investments, particularly in the energy sector.

It started operations in India in 2009 with its inaugural investment in Multiples Equity and opened its first office in Mumbai six years later.