PSP Investments (Public Sector Pension Investment Board) is one of Canada’s largest pension investment managers, with approximately $245 billion in assets under management. Established in 1999, PSP manages the pension assets for the Canadian federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force.
Investment Strategy
PSP Investments pursues a total-fund approach with a long-term investment horizon, targeting returns that exceed its actuarial benchmarks. The fund is organized around a reference portfolio framework, with active investment programs measured against the incremental value they add over a passive benchmark.
The portfolio is diversified across public equities, fixed income, private equity, credit, real estate, infrastructure, and natural resources. Approximately half of total assets are invested in private markets, making PSP one of the most alternatives-intensive large pension funds globally.
PSP operates primarily from Montreal and Ottawa, with additional offices in New York, London, and Hong Kong. The fund manages a significant portion of its assets internally and has built substantial in-house investment capabilities across all major asset classes.
The fund emphasizes responsible investment and integrates ESG considerations into its investment processes across asset classes. PSP is a signatory to the Principles for Responsible Investment and publishes annual responsible investment reports.
Private Markets Approach
PSP’s private equity program invests through fund commitments to established GPs, co-investments, and direct equity transactions. The fund maintains relationships with leading buyout, growth, and venture managers globally. Co-investment alongside existing GP partners has become a growing component of the program, allowing PSP to increase exposure to high-conviction opportunities at lower blended costs.
The direct investment team originates and executes transactions independently, with a focus on mid-market opportunities in North America and Europe. PSP has completed direct buyouts, structured equity investments, and platform acquisitions across healthcare, industrials, technology, financial services, and consumer sectors.
Real estate investments are managed through both direct ownership and fund commitments. The portfolio includes office, logistics, multifamily, retail, and life sciences properties across North America, Europe, and Asia-Pacific. PSP has pursued joint ventures and strategic partnerships to access development opportunities and specialized property types.
Infrastructure investments span transportation, energy, utilities, digital infrastructure, and renewable energy. The fund invests through direct ownership and fund structures, with a preference for core and core-plus assets that generate stable, long-term cash flows.
Natural resources investments include farmland, timberland, and agriculture-related assets, making PSP one of the larger institutional investors in the natural resources space. Credit investments encompass private lending, mezzanine, and structured credit strategies.
Frequently Asked Questions
How does PSP Investments approach private equity?
PSP Investments deploys capital in private equity through fund commitments to global GPs, co-investments, and direct investments. The fund has built an internal direct investment team that can originate and execute transactions independently. PSP maintains relationships with leading buyout, growth, and venture managers and has progressively increased co-investment and direct activity as a share of its total private equity program.
What asset classes does PSP invest in beyond private equity?
PSP manages significant portfolios in real estate, infrastructure, natural resources, and credit in addition to private equity. Real estate investments include direct ownership of properties and fund commitments globally. Infrastructure investments span transportation, energy, utilities, and digital assets. Natural resources investments cover farmland, timberland, and related assets. The credit portfolio includes private debt, direct lending, and structured credit.
Which pension plans does PSP manage?
PSP Investments manages the pension assets for the Canadian federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police, and the Reserve Force. The fund was established in 1999 and began receiving net contributions in 2000. PSP invests independently from the federal government with its own board of directors and investment teams.
