CDPQ fund commits huge investment

Reaffirming the increasing interest of Canadian Institutional Money Managers in the subcontinent, the second-largest pension fund in Canada, Caisse de Dépôt et Placement du Québec (CDPQ), is set to commit nearly half a billion dollars investment in India in two separate investments. According to sources, CDPQ has agreed to acquire close to 30% in the Asset Reconstruction Company of Edelweiss Securities for about $250 million in a deal that will value the stressed assets manager at $750 million. Additionally, the Canadian fund is also in the final stages of negotiations to acquire a 42% stake in south-based TVS Logistics Services Ltd. for about $180 million cashing in on a sector-wise boom driven by e-commerce. On this score, CDPQ will acquire shares held by US private equity giants KKR & Co LP, and Goldman Sachs Inc. KKR invested Rs.268 crore in TVS in April 2012, while Goldman invested Rs.120 crore in two tranches of beginning of 2008. Edelweiss ARC is the biggest player in the stressed assets space with a 40% market share, said CEO, Siby Antony.