CPPIB backs ex-York co-CIO's Nekton | With Intelligence

CPPIB backs ex-York co-CIO’s Nekton.

Fraser Irving

17FEB2022

Canadian pension fund CPPIB has invested in a hedge fund start-up launched by the former co-CIO of York Capital.

It is understood that CPPIB was an early investor in Nekton Capital, which is led by Christophe Aurand.

It is unclear how much the pension fund invested, but the deal was concluded earlier this year, sources said.

Nekton Capital launched last year after it emerged that Aurand was eyeing up to $1bn in assets for the launch.

The London-based firm runs an event-driven and long/short equity strategy with a global focus.

Aurand was one of several senior investment professionals to leave Jamie Dinan’s firm and set up on his own following York’s announcement that it was preparing to largely wind down its hedge fund business and focus on other units like private equity, private debt and other asset classes which provide a longer lock up period.

The deal to invest in Nekton is the pension fund’s second in recent months after it emerged that Palliser Capital, a multi-strategy fund managed by former Elliott Management professional James Smith, had received backing as part of CPPIB’s emerging manager program.

CPPIB oversees around $410bn in assets, part of which is invested in its emerging manager’s program, which invests on a global scale at either seed or acceleration stage.

It currently has more than 60 investments in asset managers globally.

Last year, it was reported that CPPIB had backed Episteme Capital with an acceleration investment.

Nekton and CPPIB declined to comment.