The infrastructure group within Private Investments was formed in late fiscal 2006 to look at significant, global, private and public-to-private infrastructure equity investment opportunities. Infrastructure investments primarily fall within the real return asset portion of the CPP Fund portfolio, providing a strong match with the fund’s inflation-linked liabilities.

The infrastructure program’s focus is on assets with lower risk and return characteristics, typically characterized by strong regulatory and monopolistic elements, and with low substitution risks. Such investments might include electricity transmission and distribution, gas transmission and distribution, water utilities, toll roads, bridges and tunnels, airports, and ports.

As a secondary focus, we will also consider investments in more competitive assets if they represent an extension of our infrastructure knowledge domain, or if they possess significant levels of contracted revenues. Investments in the area of electricity generation, midstream gas, or gas storage might fall under this grouping.

The CPPIB infrastructure group is currently targeting investments requiring us to contribute $300 to $600 million of equity capital and we generally expect to be participating in a consortium of strong, competitively-advantaged, like-minded partners.

We are initially focusing on deals originating in North America and Western Europe, but will look at other investment grade jurisdictions on an opportunistic basis if they offer stable regulatory, economic and political environments.