CPP Investments posts strongest quarter in more than a decade

Canada Pension Plan Investment Board posted its strongest quarterly investment performance in more than a decade for the three months through June, with real assets — energy in particular — 'contributing meaningfully' and credit delivering 'steady gains,' according to Alternative Credit Investor. The fund ended its first quarter of fiscal 2027 with C$863.6bn in net assets, up C$70.3bn from the prior quarter. Of the increase, C$60.2bn was net income and C$10.1bn came from net transfers into the Canada Pension Plan.

Credit deployment during the quarter included a US$1bn commitment to Blackstone Private Credit Fund, which lends senior secured to large performing companies, and roughly €270m to finance a portfolio of European corporate loans originated by an Ares Management fund. CPP also agreed to sell its remaining European non-performing loan interests to a newly formed joint venture between Arrow Global and Fortress Investment Group, generating about C$1bn in net proceeds. Its original NPL investment dated to 2017.

Real assets made the larger moves. CPP invested US$1.75bn to support EQT's strategy to build AI infrastructure, led by data centre developer EdgeConneX. It also completed the acquisition of a 50% stake in Inkia Energy, Peru's largest power generation platform, at a total enterprise value of US$3.4bn, alongside I Squared Capital.

John Graham, president and chief executive, said the portfolio remains well positioned to benefit from favourable public equity market performance. The fund's 10-year annualised net return stands at 9.4%. The US$1bn commitment to Blackstone and the C$1bn NPL exit sit on the same quarter's ledger. That combination is worth watching.