CPP Investments Injects $843 Million in US Energy Firm

Toronto-based Canada Pension Plan Investment Board (CPP Investments), a global investment management firm, on Tuesday said that it has signed and closed an agreement to invest approximately $843 million in Tallgrass Energy, a leading energy infrastructure company in the US.

Based in Denver, Colorado, Tallgrass is a leading infrastructure company operating a network of more than 10,000 miles of pipeline assets across 14 states in the US.

The company is currently engaged in several initiatives aligned with the global transition to a lower-carbon future, including the development of CO2, hydrogen, renewable fuels, and decarbonised power assets.

Bill Rogers, Managing Director, Global Head of Sustainable Energies at CPP Investments, said that with a business strategy that combines traditional energy and decarbonisation solutions, Tallgrass is an attractive investment opportunity because of its dual role in delivering against growing energy needs and increasing decarbonisation opportunities.

“We are excited to partner with Blackstone and combine our investment and energy expertise to help support the Tallgrass team,” he added.

Matthew Runkle, a Senior Managing Director and Head of Renewables and Midstream within the Infrastructure Group at Blackstone, said that over the last five years, they have worked closely with the Tallgrass management team to develop and operate industry-defining large-scale energy infrastructure.

“We are delighted to welcome our long-term partner, CPP Investments, as a new investor in Tallgrass, combining our resources to support Tallgrass for continued growth,” he added.

Investments in Global Energy Systems

CPP Investments’ Sustainable Energies group is active across the global energy system, with net assets totalling approximately $25 billion as at 31 March 2024, including investments in renewables, conventional energy, carbon capture and storage, distributed and energy services, and emerging and disruptive technologies.

CPP Investments ended its fiscal year on 31 March 2024, with net assets of $461.05 billion, compared with $415.62 billion at the end of fiscal 2023. The $45.43 billion increase in net assets consisted of $46.4 billion in net income and $15.9 billion in net transfers from the Canada Pension Plan (CPP).

CPP Investments is a professional investment management organisation that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan.

In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, Sao Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments.

CPP Investments’ last investment was in team.blue, Europe’s leading digital enabler for entrepreneurs and Small and Medium Businesses (SMBs).

Tem.blue represents one of the largest European digital solution providers to 3.3 million SMB customers across 22 countries. The transaction values team.blue at $5.28 billion making it one of the largest privately owned technology companies in Europe.