Private equity investments are made in businesses by acquiring a portion of their capital, either directly or through specialized funds. They also include financing in the form of corporate loans.

These investments are not very liquid and are riskier than stocks. However, they provide a higher return than the stock markets over a period of five to seven years.

The Caisse’s private equity portfolio represents 11.4% of the overall portfolio (as at December 31, 2007).

This team’s s work is based on:

• A proximity approach, that is a thorough knowledge of target businesses and markets, which results in partnerships for distant markets;
• An opportunistic approach in order to take advantage of investment opportunities depending on market conditions;
• Choosing the best corporate and investment funds management teams;
• Risk management based on rigourous analysis and monitoring of businesses;
• Investment diversification by industrial sector, geographic area, financial product and business maturity.

For more information: Private Equity Team.

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Additional Information
Fixed-income securities
Equity Markets
Real estate
Hedge funds
Asset allocation activities