The CPP Investment Board announced today commitments of US$500 million to three private equity funds for investment over the next several years in private companies.

Up to US$200 million will be drawn down over five years by Global Private Equity IV, and a structured co-investment program, sponsored by Advent International Corp., a global private equity firm.

With an expected size exceeding US$1.5 billion, the fund will focus on investing in buyout opportunities in a diversity of economic sectors in Western Europe and North America.

Founded in 1984 and based in Boston, 75% of Advent’s investment professionals are located outside the U.S. in 16 countries.

US$200 million will be drawn down over six years by Blackstone Capital Partners IV L.P., a private equity fund sponsored by The BlackstoneGroup, a New York based merchant bank.

The fund, with a target size of US$5 billion, will invest in large buyout opportunities primarily in North America and Western Europe.

Since its inception, Blackstone has raised more than US$17 billion for 10 separate alternative investment funds. The firm was formed in 1985 and has strong support for all of its funds from U.S. and overseas pension funds. Blackstone’s largest limited partner is its employees.

US$100 million will be drawn down over three years by CSFB Global Opportunities L.P. With commitments exceeding US$1.5 billion, the fund will invest in distressed securities, usually debt, with the ultimate goal of acquiring control of companies requiring reorganization.

The CSFB (Credit Suisse First Boston) team has been investing in the distressed market since 1994 and including this particular fund, manages more than US$2.5 billion.

“All three funds are managed by teams with impressive track records in their areas of specialization,” commented Mark Weisdorf, vice president responsible for private market investments at the CPP Investment Board. “We chose these teams for their results, ability to identify quality investment opportunities, and willingness to offer us co-investment opportunities.”

In June, the CPP Investment Board announced it would ultimately invest up to 10 percent of assets in private equity. To date, approximately $1.9 billion has been committed to private market investments.