Goldman Sachs emerges as buyer in CPP’s $860m energy funds sale

Goldman Sachs Asset Management has emerged as the buyer in a transaction where CPP Investments partially divested 12 North American energy funds, Secondaries Investor has learned.

The transaction was structured as a preferred equity deal, according to a source familiar with the matter. PJT Park Hill is understood to have advised on the deal.

CPP Investments, Goldman Sachs and PJT Park Hill declined to comment.

The Toronto-based pension generated approximately $860 million from the divestment of the energy funds, according to its second-quarter fiscal 2024 update.

The deal was one of many secondaries transactions that CPP participated in, both on the buy side and the sell side, during the three months to end-September. Others include the €96 million sale of its 2016 commitment in STAR Capital Partners III, the acquisition of a $100 million stake in Oak Hill Capital Partners V and the acquisition of stakes in two fund of funds vehicles for $206 million, according to the update.

Earlier this month, CPP confirmed the close of an LP portfolio sale to Ardian, which included 20 LP fund interests, mostly in North American and European buyout funds. The sale generated approximately C$2 billion ($1.45 billion; €1.36 billion) in net proceeds.

In August, affiliate title Buyouts reported that Ardian had stepped up to buy a fund portfolio from CPP Investments and was granted the flexibility to select its preferred assets from the available pool.

Goldman Sachs is the third-biggest fundraiser in the secondaries industry, according to this year’s SI 50 ranking. In September, the firm closed its flagship Vintage IX fund on $14.2 billion, marking the second-largest secondaries vehicle raised in the first three quarters of the year, according to Secondaries Investor data. Goldman Sachs also closed its debut commingled Vintage Infrastructure Partners fund on $1 billion. Both funds received private wealth capital and closed above target.

Vintage IX will invest in continuation funds, traditional LP portfolios and preferred equity/structured transactions, Secondaries Investor previously reported.