Canadian Pension Model - Private Equity Investing
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- čas přidán 7. 07. 2024
- The Canadian Pension model has a complex structure that is difficult to replicate around the world. This Mink Learning video covers the various reasons of why this occurs:
0:00 - Introduction
00:36 - Stats on the Canadian Pension Model
01:30 - What is a pension
01:56 - History of Canadian Pension Plan
04:04 - How other Canadian pensions adopted the model
05:19 - Why the model is so difficult to replicate around the world
07:20 - Fund investing
07:56 - Hybrid Investing
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Disclaimer: All investment and financial information expressed in this video is for educational purposes only.
#MinkLearning #pension #privateequity #investment #cpp #otpp @CPPInvestments @otppinfo
Good going, this was valuable and I have been listening for years.
Thanks Julian. I appreciate you letting me know. I'm doing my best to produce more content to post. Thanks again for your message.
Great video Steve! Exatcly the information I was looking for. Cheers
I'm happy to hear. Thank you so much!
You have no idea how much you help us finance students this was key
Hi Karim, this is such a nice comment. Thank you so much for your feedback. I'm happy you find it helpful. I really appreciate it!
nice unique topic thanks keep up he work
Thanks so much, Adam!
Thank you
Thanks Eric!
when you say their PE return is excellent, curious to know how much are they better compared to benchmark or top tier PE fund?
welcome back
seeing your video after 6 months..
can you make a video on Trust - end to end..
I learnt a lot from you.. thanks for the valuable content.
thanks
Hi saibaba, thanks so much for your comment. I will be posting more in the near future. I'm happy you like the content :-)
Hi Steve - first off videos are simply outstanding. 2 questions:
- just wondering how having independent directors gives these investment arms a competitve advantage over other investment arms (i.e. an example)
-& by skills required, do you mean that they have proprietary know-how of the industry that is hard to replicate ? or what do you mean by this statement of 'skills required'
Hi Simon, thanks so much for your message. To answer your questions
1) When the structure of pension does not create a separate investment arm, then, a lot of times, the employees will be treated similar to Government employees (for example, they won't be able to be paid the competitive wages that firms like CPP Investments can pay)
2) By "Skills Required", yes, I am referring to the point that a direct investment program is difficult to build and replicate, especially a program so complex, such as the Canadian Pension Investment Model, that includes co-investments, secondary investment and more.
Please don't hesitate to let me know if you have further questions. Thanks.
How does a small investor apply the same model to build our own portfolio
Good Article, do you have classes in Udemy or anywhere else?
Hi Aleksandar, thanks for asking. I don't have any at this time, but I will be offering classes (and other content) through training.minklearning.com/ later in 2021.
Can’t other pension pay as well as the ontario pension or canadian pension to attract talents especially when the tax rate in Canada is high? Wouldnt the big PE firms such as KKR and blackstone pay even better? These canadian talents werent lured?
Thanks for your comment, Jack. The Canadian pensions were one of the first pensions of their kind to separate the investment department from the rest of the pension. Because of the integrated nature of the pensions in places such as the US, the pensions haven't paid competitive rates
You are correct that KKR and Blackstone pay even better, but the gap between CPP Investments (formerly CPPIB) and these firms has been far less than the gap compared to other pensions.
In addition, one can argue that the work/life balance at these Canadian pensions is better than at the big PE firms.
Great video! It provided a lot more clarity as to how Canadian pensions are able to effectively leverage favorable environments to create wealth for their various steak holders. That being said, what are your thought on how might a smaller private equity firms receive investment capital from CPPIB?
Thanks for your message, Santiago. Great question. Some characteristics would include a great track record, experienced team and a good investment thesis.
CPPIB has over $400B, so they don't really invest in smaller private equity funds. It has to be a decent sized fund for it to be worth their while.
Duh 🙄 all bonds are crappy results and poor returns and it took the board 75 years to learn that