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CPPIB Sees Tough Climate for Private Deals With Sellers Wary

  • Fund posted 6.8% return, pushing net assets to $420.4 billion
  • Inflation, geopolitical risks, markets weigh on pension plan
Canada Pension Plan Investment Board earned 6.8% in the fiscal year ended March 31 as the selloff in stock and bond markets sapped returns.   

Canada Pension Plan Investment Board earned 6.8% in the fiscal year ended March 31 as the selloff in stock and bond markets sapped returns.   

Photographer: Cole Burston/Bloomberg
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The head of Canada’s largest pension plan said private deals will be hard to complete as sellers resist cutting prices with equity markets tumbling. 

“It’s going to be challenging probably for people to close transactions in the near term due to valuation-expectation differences between buyers and sellers,” John Graham, chief executive officer of the Canada Pension Plan Investment Board, said in an interview Thursday. That spread is widening and there aren’t “distressed sellers in the market,” he said.