Canada Pension Plan with ~12% return says it’s losing out on infrastructure deals
The Canada Pension Plan Investment Board (CPPIB), one of the world’s biggest infrastructure investors, is regularly losing out in bidding wars for such assets, its chief executive said, as investors seek alternatives to low-yielding government bonds.
The CPPIB is one of the world’s biggest investors in infrastructure such as roads, bridges and tunnels but its CEO Mark Machin said high valuations were making it harder to do deals in the current environment.
“We are consistently outbid for assets around the world because they are really priced almost to perfection and there’s an enormous amount of capital chasing infrastructure, particularly in developed markets,” Machin told reporters after the fund reported results for its last fiscal year on Thursday.
The CPPIB did acquire a 33 percent stake in Pacific National, one of the largest providers of rail freight services in Australia, for about A$1.7 billion ($1.3 billion) last year but was generally less active in the infrastructure space than it has been in previous years.
Machin said there could be opportunities in the United States if U.S. President Donald Trump proceeds with a $1 trillion infrastructure plan.
Full Content: Reuters
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