Ares and CVC acquire 25 fund interests from CPP Investments in latest portfolio streamlining move
Canada Pension Plan Investment Board (CPP Investments) has finalized the sale of a diversified portfolio comprising 25 limited partnership interests in North American and European buyout funds.
The transaction, completed on 31 March, involved Ares Management Private Equity Secondaries funds and CVC Secondary Partners, the secondaries division of CVC Capital Partners.
CPP Investments reported net proceeds of approximately $1.2bn from the sale, after accounting for certain costs and adjustments.
The portfolio included various primary commitments and secondary purchases made over a decade ago.
Dushy Sivanithy, managing director and head of Secondaries at CPP Investments, said the transaction was part of their “active portfolio management activities.”
He described the sale as “an attractive opportunity to optimize the construction of our portfolio,” reflecting their role as a systematic buyer and seller in the secondaries market.
He added that ongoing management of private equity commitments “continues to realize strong returns for the CPP Fund.”
As of 31 December 2024, CPP Investments' net investments in private equity totaled $151.2bn, within a broader fund valued at $699.6bn.
The private equity portfolio spans global assets, emphasizing long-term value creation through fund commitments, secondary markets, and direct investments in private companies.
Ares Management, following its acquisition of GCP International in March, manages over US$525bn in assets across various regions, including North America, South America, Europe, Asia Pacific, and the Middle East.
CVC Capital Partners reported assets under management of €200bn as of 31 December 2024.
The firm has expanded its operations through the acquisition of CVC DIF and full ownership of CVC Secondary Partners, enhancing its capabilities in private equity, secondaries, credit, and infrastructure.
According to the press release, this transaction reflects a broader trend among institutional investors leveraging the secondary market to manage private equity exposures.
As per Secondaries Investor, CPP Investments has recently committed €167m to a secondaries fund managed by AXA Investment Managers, acquiring indirect exposure to 12 buyout funds and providing new capital for North American and European buyout transactions.
