Canadian Pension Plan Investment Board Global Head of Private Equity Caitlin Gubbels is shifting the board’s focus away from direct buyout strategies and instead allocating capital through external managers and co-investments, an article from Pension Pulse reports.
Gubbels noted in the interview that investors saw a “lack of discipline” in 2020 and 2021 when it came to making deals. A rapid increase in interest rates negatively impacted how much businesses were worth, making it harder to allocate cash. As a result, Gubbels stated that private equity portfolios have been “treading water” for the past five years.
Adding in increased tariffs set forth by President Donald Trump last year, there was a downturn in the market. Luckily, artificial intelligence tools rose in popularity, bringing on new opportunities. At the same time, retail investors found the private markets an attractive spot to allocate their capital.
“If 2025 has taught us anything, it’s that nothing is certain anymore,” Gubbels said. For private-equity investors, “the market has been tricky and it’s getting trickier,” she added.
In 2024, the Ontario Municipal Employees Retirement System (OMERS) stopped direct private equity investments in Europe, choosing to invest alongside partners and third-party managers instead.
In April 2025, Pension Pulse wrote that Caisse de dépôt et placement du Québec (CDPQ) scaled back its ownership positions in private companies and the Ontario Teachers’ Pension Plan was looking at taking on more strategic partnerships.
Twenty-two percent of public pension fund assets are allocated towards private equity, global think-tank New Financial stated. As of Sept. 30, 2025, one-fifth of CPP’s C$777.5 billion (~$559,335,105,000) in assets is allocated towards private equity. The portfolio earned 8.7 percent last fiscal year, and its five-year average was 14.7%, annually.
In an effort to optimize the fund, the pension board moved some of its private holdings into The Integrated Strategies Group (ISG). “ISG enhances our ability to improve the Fund’s performance by allowing CPP Investments to hold, manage and make investments beyond the strategies of traditional investment departments,” CPP’s website states.
The board is looking at taking on more passive co-investments, the Pension Pulse article further stated.
ISG includes significant ownership in two reinsurance companies, Ascot and Wilton Re, as well as a large minority stake in an agribusiness solutions provider, Bunge, the board’s website notes.
CPP Makes Investment Into Long-Standing Partnership
CPP also announced today in a statement that it is committed to investing an additional C$750 million (~$539,898,750) through its Canadian mid-market program managed by Northleaf, a global private markets investment firm.
The mandate will focus on small and mid-market Canadian buyout funds, secondary investments and direct co-investments focused on the domestic market, the statement said.
“There are compelling investment opportunities in the Canadian market, and our two-decade-long partnership with Northleaf has proven to be an effective and scalable way to invest in homegrown businesses with patient, long-term capital,” Bruce Hogg, CPP managing director, head of integrated strategies, said.
CPP and Northleaf also completed a global secondary expansion. CPP invested approximately C$160 million (~$115,178,400) to gain exposure towards a diversified portfolio of mid-market funds, as well as companies across Northleaf’s global private equity program.
Photo: Courtesy Harvepino via Shutterstock
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