Canada Pension Plan Investment Board has promoted Caitlin Gubbels to be its next global head of private equity, replacing Suyi Kim who plans to leave the pension fund two months from now.
Ms. Kim has led CPPIB’s private-equity division for the past three years and will stay on until Oct. 15. Over her 17-year tenure at the pension-fund manager, she opened its Hong Kong office in 2008 and led its investments in the Asia-Pacific region. She is leaving to pursue “new global investment leadership opportunities,” according to a news release.
Ms. Gubbels most recently led CPPIB’s private-equity funds business. In mid-October, she will take over responsibility for the $136.8-billion private-equity unit, including direct and Asia investments. She joined CPPIB in 2010, after working as an investment banker at CIBC World Markets Inc.
In a statement, chief executive officer John Graham highlighted Ms. Gubbels’s “proven ability to build relationships and generate returns across private equity opportunities.”
Private equities were CPPIB’s largest asset class as of March 31, making up about 31 per cent of the total fund. Last fiscal year, the unit earned a 9.6-per-cent return, which was lower than what private-equity investors typically seek as high interest rates created uncertainty about company valuations and deal-making, and liquidity slowed to a crawl.
On Wednesday, CPPIB reported a 1-per-cent return on investments in its first fiscal quarter, which ended June 30. Total assets increased to $646.8-billion, adding $6.3-billion of investment income and $8.1-billion of new contributions transferred from the Canada Pension Plan.
Investments in public stocks, credit and assets denominated in U.S. dollars performed well, as the U.S. dollar strengthened against the Canadian dollar. But investments in government bonds were hurt by persistent inflation that tamped down the market’s expectations for rate cuts.
Over 10 years, CPPIB has reported an average annual return of 9.1 per cent.
The CPP is the primary national retirement program for working Canadians, with more than 22 million contributors and beneficiaries, and CPPIB has managed and invested its funds on behalf of its members since 1999.