Canada Pension Giant Balks at Paying Fees to Co-Invest With PE

Canada Pension Plan Investment Board, one of the largest investment firms globally, is unlikely to partner with private equity managers that start demanding fees from institutional investors who invest alongside them in deals.

Large pensions and institutional investors like CPPIB have for decades jointly invested with buyout firms in marquee transactions on a no-fee, no-carry basis. Now, with retail money flowing into the space, any private equity firms weighing charging institutions a fee to participate in select deals will face resistance.

“It will undoubtedly have an impact on our appetite for the asset class, because that’s the model we ...