TORONTO — The Canada Pension Plan Investment Board says it earned a return of 3.6 per cent during its most recent quarter, after expenses.
Net assets for the Toronto-based fund manager grew to $420.4 billion as of Dec. 31, up from $409.5 billion at the end of the previous quarter.
The $10.9 billion quarter-to-quarter increase included $14.5 billion in net income from investments, after all CPPIB costs, offset by $3.6 billion of cash outflows to the Canada Pension Plan.
CPPIB’s base account had $419.0 billion in net assets as of Dec. 31, up $10.7 billion from the previous quarter, and a new account for extended CPP benefits had $1.4 billion in assets, up from $1.2 billion at the end of September.
Its five-year annualized net real return, which adjusts for inflation, was 8.4 per cent and its 10-year real rate of return was 8.5 per cent during what was the third quarter of its 2019-20 financial year.
CPPIB is an independent fund manager for the national pension system, which invests excess contributions from employers and employees in most parts of Canada except for Quebec, which has its own provincial plan.
This report by The Canadian Press was first published Feb. 14, 2020.
The Canadian Press
Silver Lake Launches New 25-Year Investment Strategy Backed by Mubadala
Abu Dhabi sovereign-wealth fund Mubadala Investment Co. is making an investment in Silver Lake and contributing $2 billion to help the technology-focused private-equity firm launch a new long-term strategy, according to people familiar with the matter.
Mubadala will take a stake of less than 5% in Silver Lake, buying roughly half of what Neuberger Berman Group LLC’s Dyal Capital Partners purchased in 2016, the people said.
Under the new strategy, Silver Lake will have 25 years to deploy the capital and harvest any gains, allowing it to hold assets for much longer than the typical 10-year buyout-fund time horizon.
Silver Lake and the P.E. Industry
It couldn’t be learned what Mubadala is paying for the stake, what it values Silver Lake at or how much in total the firm intends to raise for the new strategy.
The twin investments represent a vote of confidence that will give a boost to a big expansion that is under way at Silver Lake as the firm seeks to capitalize on a surge in interest in tech investments. It has been one of the most active investors since the coronavirus pandemic began, striking billions of dollars worth of deals with companies including
Airbnb Inc. and
Expedia Group Inc.
Silver Lake is separately close to completing fundraising on a new flagship fund and had collected more than $18 billion for that vehicle as of Aug. 14, according to a regulatory filing then. It is replacing a $15 billion pool raised in 2017. The Mubadala-backed strategy initially will co-invest alongside the flagship fund to build up a portfolio of investments but also will be able to do its own deals, the people said.
The new business line will offer Silver Lake a broad mandate to invest in debt and equity and across various geographies and industries, the people said. It may make investments in fast-growing upstarts or do traditional leveraged buyouts of more mature companies.
With headquarters in Menlo Park, Calif., and New York and more than $60 billion in assets under management already, Silver Lake has a longstanding playbook of taking large stakes in technology and media companies including computer-maker
Dell Technologies Inc.
and entertainment firm Endeavor Group Holdings Inc. and working closely with their founders or management to help spur growth.
There has been a broader industry shift in favor of what is called perpetual capital—pools of money that firms don’t need to constantly refresh at great effort and expense. At 25 years, the new strategy could last for the entire remaining investment career of Silver Lake’s new co-chief executives, Egon Durban and Greg Mondre, both in their mid-40s.
Private-equity rivals including
Blackstone Group Inc.,
Carlyle Group Inc.
and CVC Capital Partners also have been developing long-term strategies, although most of those funds have a lifespan of around 15 years. They tend to pay up for businesses that are stable and have steady cash flows and aren’t fixer-uppers, giving them annualized return expectations of 12% to 15% versus the 20%-plus touted by traditional buyout funds.
Silver Lake’s 2013 flagship fund—the most recent vehicle with meaningful performance data—had returns net of fees of 23% as of March, according to public pension-fund records. The firm isn’t lowering its return expectations for the new strategy, according to people familiar with the matter.
For Mubadala, which manages $232 billion, the partnership with Silver Lake may represent a strategic shift for its technology investments. Mubadala was a key backer of
SoftBank Group Corp.’s
Vision Fund, committing $15 billion to the $100 billion vehicle. But it privately has complained about the high valuations at which SoftBank made its investments and subsequent losses in the fund.
Mubadala’s relationship with Silver Lake dates back years. The sovereign-wealth fund invested in William Morris Endeavor Entertainment in 2012, the same year Silver Lake took a stake in the company. In 2013, Mubadala said it was investing alongside the private-equity firm in WME’s acquisition of IMG Worldwide, forming what is now known as Endeavor.
In 2019, Silver Lake invested $500 million for a minority stake in City Football Group, the owner of soccer clubs including the English Premier League’s Manchester City. Mr. Durban joined the board of the company, which is chaired by Mubadala CEO Khaldoon Al Mubarak.
Mubadala also participated in the $2.25 billion funding round for
self-driving car unit Waymo LLC that Silver Lake led in March, as well as in the firm’s subsequent investment in Indian tech-and-telecom giant Jio Platforms Ltd.
Write to Miriam Gottfried at Miriam.Gottfried@wsj.com
Lawyer for prominent Halifax investor says the bank is to blame in multi-million investment loss – Global News
The lawyer representing a high profile investment advisor in Halifax says his client is not at fault in a civil lawsuit that is seeking $40 million from a failed investment strategy and is placing the blame squarely on the National Bank of Canada and its subsidiary National Bank Investment Network (NBIN).
On Sept. 14, a $40 million civil lawsuit was filed on behalf of 30 plaintiffs at the Nova Scotia Supreme court against Fredrick Saturley and his investment firm High Tide Wealth Management and the NBIN who supervise the accounts.
High Tide’s lawyer Chris Robinson says many of the plaintiffs in the civil suit are long-time clients who have had financial success with Saturley and as part of their investment strategy had signed discretionary trading agreements which allow Saturley and High Tide to pursue trades without consultation.
Robinson says every one of these clients listed in the civil suit entered into and signed an agreement as part of their investment policy statement with High Tide.
“And that investment policy statement for these clients indicated that they were seeking capital appreciation, generation of income and that they were willing to accept above-average risk to achieve these results,” said Robinson.
A discretionary agreement allows Saturley and High Tide the ability to make trades without having to call and consult the client said Robinson which contradicts exactly what many of the clients are claiming in the lawsuit.
$40 million lawsuit filed against prominent Halifax investor and national bank
Lawyer Ian Gray represents the 30 plaintiffs and acknowledges that some of his clients may have signed discretionary agreements with High Tide but says they didn’t sign up for the high-risk trading that he says put their investments at risk.
“We’ve got people who wanted relatively aggressive strategies and we’ve got people who wanted extremely safe strategies and as best we can tell, they all got the same risky ride,” said Gray.
Gray and his clients allege Saturley was independently executing these risky investment strategies, and when the COVID-19 pandemic hit and the market crashed, so did the clients’ portfolios.
Retired Canadian Armed Forces member Trevor Long is one of the plaintiffs, he says he invested a significant amount of his disability payout from veteran affairs with High Tide wealth management in early 2019.
Long says he initially invested $80 thousand and when his portfolio was doing well, he added another $36 thousand.
“Everything was going good until the middle of February and then March, I get a call and a lot of money disappeared,” said Long.
Long estimates he lost more than $80 thousand and alleges Saturley was pursuing high-risk investment strategies which he never signed up for.
“He was doing what he wasn’t authorized to do by me as a client and the bank obviously let him do it and we all got run roughshod over,” said Long.
Coronavirus outbreak: The impact COVID-19 is having on the global economy
Robinson says the client’s anger is misplaced and says it’s not Saturley or High Tide that is at fault but suggests it’s the bank and NBIN who panicked in Mid-March when COVID-19 sent the market crashing.
On March 9 as the market was sinking, many of the clients received a margin call on their account and needed to make a deposit to bring their accounts back onside says Robinson and in the meantime, Saturley was working with his clients to come up with the money the bank was looking for.
Robinson said the bank came calling again on Sunday, March 15 and said they were going to liquidate all the accounts on Monday if the money wasn’t in place, which he said left Saturley and the clients little time to come up with the money.
“The bank panicked and I have no idea why they did that,” said Robinson. “What they did however is step into the shoes of Mr. Saturley and his clients and simply said if there’s not a cheque there at market open, everything is getting liquidated and that’s what they did.”
Robinson said Saturley and his clients didn’t have time to meet the bank’s demands and if they only allowed them a few more days the market would have turned itself around and the accounts would have stabilized themselves.
“If the bank had of just been patient,” said Robinson. “Within 10-days those accounts would have been back onside and none of those liquidating transactions would have needed to happen.”
Gray said he agrees the bank is at fault but says Saturley was operating outside of his clients’ agreement.
“Make no mistake we say the bank is responsible for this,” said Gray. “But we say Mr. Saturley and his company are responsible as well.”
Global News reached out to the National Bank for an interview but they declined to comment for this story.
Neither side has filed a defense statement at this point as the legal counsel for the plaintiffs said they will likely be adding further names to the civil lawsuit and will make amendments to the lawsuit in the coming weeks.
None of these allegations have been proven in court and no court date is scheduled at this time.
© 2020 Global News, a division of Corus Entertainment Inc.
Event Store Secures Series A Investment English English – PRNewswire
BATH, England, Sept. 29, 2020 /PRNewswire/ — Event Store today announces it has secured Series A financing from strategic investor Qualasept Holdings (‘QH’).
Event Store is the company behind EventStoreDB, the popular open source event stream database. EventStoreDB was open sourced in 2012 and has relatively quietly built a strong commercial business. In late 2018, Event Store Limited was formed and an expanded leadership, engineering, and support team were introduced. The Series A investment represents Event Store’s next stage of growth towards EventStoreDB’s adoption in the broader database market.
EventStoreDB is an operational “source of record” database technology. It has similarities to event-oriented integration technologies, such as Apache Kafka, from a stream and API perspective. However, it was built for database workloads from the start. Dave Remy, Event Store CEO, explains, “Most mainstream database technologies, whether relational, graph, or document-oriented, keep the latest state of the data, throwing away the old data when it changes. In contrast, EventStoreDB, the leader in the emerging class of databases, called Event Stores, is specifically designed to keep the changes along with the business context of those changes, in the form of events. Current state can then be derived from replaying the event stream. This pattern enables a myriad of benefits, including powerful audit, debugging, caching, occasionally connected scenarios, and much more.”
Event Stores are foundational to the increasingly popular Event Sourcing design pattern.
EventStoreDB is applicable across industries and is particularly valuable for those with challenging audit requirements, such as financial services and healthcare. Innovative companies like Walmart, Xero, Insureon, Linedata, Made.com, UK National Health Service, Swiss Air Traffic Control and many more use EventStoreDB in mission-critical production environments.
Building on its momentum, the company is launching Event Store Cloud, a multi-cloud database as a service (DBaaS). The subscription service, currently in Preview, will provide cloud convenience and make EventStoreDB more accessible to developers and companies of all sizes.
“As applications increasingly move toward event-driven architectures, foundational platforms like EventStoreDB will be a critical first source of truth in capturing and enabling analysis of event data. This technology will generate meaningful and measurable value across multiple industries,” said Ben Kolada, Director, Head of DataTech at ICON Corporate Finance.
“From the time Greg Young and his team released EventStoreDB in 2012, it has been the go-to database for CQRS and Event Sourcing projects. This Series A investment represents a new stage for Event Store and EventStoreDB. We will accelerate the development of Event Store Cloud, improve the developer experience, increase scalability, and build new products and services to help developers build systems within an event-driven architecture,” Dave Remy said.
Tech investment bank ICON Corporate Finance advised Event Store on the transaction and corporate structuring, while QH was advised by BDO, Roxburgh Milkins Limited, and Alantra.
Email: [email protected]
SOURCE Event Store Limited
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