Canadian pension fund CDPQ wants to be its own private equity investor
Caisse de depot et placement du Quebec (CDPQ), one of Canada’s biggest public pension funds, has relied on private equity firms to invest in leveraged corporate buyouts. Now it is building its own investing team to depend less on buyout firms as middle men.
Private equity firms buy companies only to sell them a few years down the line for a profit. Their reputation as costcutters eyeing a speedier exit makes some companies more open to consider an investment from a longer-term investor such as CDPQ instead.
“These are interesting (opportunities) because typically these entrepreneurs or corporates didn’t want to partner with standard private equity firms,” Stephane Etroy, CDPQ’s head of private equity, said in an interview.
Read More: Reuters
