NB Capital Partners today announced a strategic investment by the CPP Investment Board and a significant increase in National Bank of Canada’s investment in its funds.

The CPP Investment Board will immediately commit $180 million to three funds managed by NB Capital Partners, formerly a subsidiary of National Bank Financial, and invest a further $18 million to acquire a 10% equity stake in NB Capital Partners, the funds’ manager. In addition, the CPP Investment Board has purchased a four-year option to increase its ownership stake exercisable upon committing a further $185 million to funds managed by NB Capital Partners. Assuming exercise of its option, the CPP Investment Board will have invested approximately $400 million in NB Capital Partners. Concurrently, National Bank Financial has agreed to invest an additional $135 million in the equity funds managed by NB Capital Partners.

Kym Anthony, president and CEO of National Bank Financial said, “as a founding partner, we’re very pleased by the progress demonstrated by NB Capital Partners since its inception over the past two years. We are delighted to forge a strategic partnership with the CPP Investment Board. This partnership will create an exciting new stage in NB Capital Partners’ development.”

“National Bank of Canada has been a great supporter of the business. The addition of the CPP Investment Board gives us two strategic partners,” said Samuel L. Duboc, president and managing partner of NB Capital Partners.

Gilbert S. Palter, the other managing partner added, “these transactions will enable us to more quickly realize our vision of making NB Capital Partners one of North America’s leading mid-market private capital fund managers. This is great news for our investors and for companies seeking capital.”

In commenting on its involvement with NB Capital Partners, Mark Weisdorf, vice president responsible for private market investments at the CPP Investment Board said, “we selected NB Capital Partners based on their performance record, their experience in the market and their ‘family of funds’ approach. Our equity investment in NB Capital Partners, and the manner in which it was made, ensure that the interests of the general partner are aligned with those of our stakeholders.”