Canada Pension Plan Investment Board and La Caisse have reportedly shelved their private equity sale plans after prospective buyers offered prices below their expectations, highlighting the gap between sellers’ valuations and investor appetite for private market assets. (Bloomberg, The Logic)

Talking point: The decision comes as Canadian pension funds grapple with weaker private equity returns, with some even posting losses last year, alongside a higher-interest-rate environment and slower deal making. According to Bloomberg, CPP Investments paused a process to sell about US$1.5 billion of private equity fund stakes in Asia earlier this year, while La Caisse reportedly halted an estimated US$1.5 billion sale of Chinese private equity assets. Buyers were seeking steep discounts, with some valuing portions of La Caisse’s portfolio at as much as 50 per cent below carrying value. CPP Investments said Wednesday it completed the sale of private equity funds to Blackstone Strategic Partners and Ardian, generating about $4 billion in net proceeds as part of its active portfolio management strategy.