Canadian pension giant turns to Blackstone and KKR to seal infrastructure megadeals

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeFinanceFinancial TimesCanadian pension giant turns to Blackstone and KKR to seal infrastructure megadealsCPPIB has started backing private capital groups' funds rather than only investing in companies directlyAuthor of the article:Last updated 29 minutes ago "Twenty years ago, there was no $20 billion infrastructure fund," said John Graham, chief executive of CPPIB. Photo by Chris J. Ratcliffe/Bloomberg via Getty ImagesOne of the world’s biggest infrastructure investors is turning to private capital groups to help it land megadeals, as firms such as KKR & Co. Inc., Blackstone Inc. and BlackRock Inc. expand their influence in a sector long dominated by pension funds.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountCanada Pension Plan Investment Board has built almost US$80 billion in exposure to energy and infrastructure by investing directly in companies. But in the past year it has started backing some of the biggest managers’ funds, it told the FT.Canada’s largest pension fund has invested in funds managed by Blackstone, KKR and EQT Corp. to allow it to clinch the increasingly big deals on offer in partnership with the private capital groups.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“Infrastructure deals are becoming increasingly large,” said James Bryce, head of infrastructure at CPPIB. “As an investor with [a fund], are we able to open up for both of us deal opportunities that we may not have been able to chase on our own?”CPPIB’s shift demonstrates the extent of the infrastructure market’s transformation from a backwater where deals were cut by pension plans to one of the most important strategies of the largest private capital groups.It also underlines the growing size of infrastructure deals coming to market, as artificial intelligence and energy security become two of the world’s most popular investment themes.Infrastructure megadeals this year include two involving BlackRock’s Global Infrastructure Partners, the acquisition of Aligned Data Centres and power group AES for US$40 billion and US$33 billion respectively.Last year marked a record for infrastructure fundraising by firms who manage cash for institutional clients, with US$200 billion raised, according to McKinsey & Co.“Twenty years ago, there was no $20 billion infrastructure fund,” said John Graham, chief executive of CPPIB. “If you wanted to deploy a billion dollars into this space you would have been 80 per cent of the fund… It was probably somewhere in the past five years where there was an inflection.”GIP, which BlackRock bought two years ago, now manages US$170 billion in assets and recently raised a US$25 billion fund. KKR’s latest infrastructure fund just raised US$19 billion, and Blackstone’s open-ended vehicle now manages around US$75 billion.Bryce said CPPIB’s infrastructure arm would still mostly invest directly in companies, but backing some funds would allow it to work with those managers to source and underwrite large deals together.Over the past year, CPPIB has committed 500 million euros to EQT’s 22-billion-euro flagship infrastructure fund and US$750 million to KKR’s equivalent, as well as pledging to invest in Blackstone’s open-ended funds.© 2026 The Financial Times LtdWe apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.