CPPIB Global Head of Private Equity Investing Declines

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The Global Head of Private Equity of the Canada Pension Plan Investment Board is moving to a local, smaller rival, creating an opportunity for one of the most prominent private equity positions in the world.

Shane Feeney is leaving CPPIB to join Toronto-based Northleaf Capital Partners, where he will take on the role of global head of secondaries.

At CPPIB, Mr. Feeney was responsible for the entire private equity operation, from direct private equity investments to secondaries.

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A secondary deal enables a large investor to sell his stake in a private company or private equity fund to another institutional investor. These positions were held for five to seven years for many years. After that period, a private company would be listed on the stock exchange or sold to another private donor, and a private equity fund would sell all of its holdings and return the proceeds to its investors.

There has been a recent push into secondary deals that allow large investors to get in or out of their private investments much earlier by effectively trading them with one another. Late last year, private equity giant Brookfield Asset Management announced a major push into secondary markets for infrastructure and private equity deals.

Secondary investments are a subset of private equity and effectively enable large investors to get in or out of their private equity exposures. For many years it was expected that private equity investments would be held for five to seven years and then an exit would be achieved by either going public or selling a company. Profits or losses from investments in private equity funds, however, could only be realized after the liquidation of the entire fund.

There has been a recent push into secondary deals that allow large investors to get in or out of their private investments much earlier by effectively trading them with one another. Late last year, private equity giant Brookfield Asset Management announced a major push into secondary markets for infrastructure and private equity deals.

Northleaf currently has $ 16 billion in capital commitments in private equity, private credit and infrastructure deals. At CPPIB, Mr. Feeney’s private equity group managed $ 125 billion.

His departure marks another change in leadership at the Canadian Pension Fund since John Graham assumed the position of Chief Executive Officer in February. In March, the fund restructured its largest group by asset, Total Fund Management, and also parted ways with a number of directors including the head of its macro strategy group and the head of financial institutions for direct private equity.

Mr Graham, the new CEO, previously ran private loan investments for the pension fund, replacing Mark Machin, who resigned when the fund manager learned he had received a COVID-19 vaccination in the United Arab Emirates in early February.

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On Monday, Singapore-based Serendipity Capital announced that it would join its board of directors as a non-executive director.

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