Canadian Pension Fund Bets Big On World Of Motor Sports
Canada Pension Plan Investment Board, one of the country's top pension fund managers, outlined "two major investments in the world of professional motor racing," according to Meads & Rocha of REUTERS. CPPIB, known for staid investments in infrastructure projects, shopping centres, private equity firms and the like, said that it had "struck a deal to buy a big stake in motorcycle grand prix organiser Dorna, and was also financing a large chunk of a loan to Formula One Group." The pension fund manager said that "it had signed an agreement to acquire a 39% stake" in MotoGP events and the FIM World Superbikes Championship organizer Dorna from private equity firm Bridgepoint. CPPIB did not disclose the purchase price, but a source said it was about €400M ($518M). The stake sale is "another example how large pension funds are buying into businesses alongside private equity houses as they look for better returns from growing companies with good long-term prospects" (REUTERS, 10/26).