CPP Investments Net Assets Total $646.8 Billion at First Quarter Fiscal 2025

All figures in Canadian dollars unless otherwise noted.

First-Quarter Performance¹:

• Net assets increase by $14.4 billion
• 10-year annualized net return remains strong at 9.1%

TORONTO, ON (August 14, 2024): Canada Pension Plan Investment Board (CPP Investments) ended its first quarter of fiscal 2025 on June 30, 2024, with net assets of $646.8 billion, compared to $632.3 billion at the end of the previous quarter.

The $14.4 billion increase in net assets for the quarter consisted of $6.3 billion in net income and $8.1 billion in net transfers from the Canada Pension Plan (CPP).

The Fund, which consists of the base CPP and additional CPP accounts, achieved a 10-year annualized net return of 9.1%. For the quarter, the Fund’s net return was 1.0%. Since its inception in 1999, and including the first quarter of fiscal 2025, CPP Investments has contributed $438.6 billion in cumulative net income to the Fund.

“Our diversified portfolio is performing as designed with gains across most asset classes,” said John Graham, President and CEO. “We continue to prudently manage the Fund to deliver value to CPP contributors and beneficiaries over the very long term.”

The quarter’s results were driven primarily by investments in public equity and across private asset classes, particularly in credit and U.S.-dollar denominated assets, which benefited from the strengthening U.S. dollar against the Canadian dollar. These gains were partially offset by investments in government bonds, which were negatively impacted as markets around the world reduced their expectations of rate cuts by central banks due to persisting inflation.

Performance of the Base and Additional CPP Accounts

The base CPP account ended its first quarter of fiscal 2025 on June 30, 2024, with net assets of $603.6 billion, compared to $593.8 billion at the end of the previous quarter. The $9.8 billion increase in assets consisted of $5.9 billion in net income and $3.9 billion in net transfers from the CPP. The base CPP account’s net return was 1.0% for the quarter, and the five-year annualized net return was 7.8%.

The additional CPP account ended its first quarter of fiscal 2025 on June 30, 2024, with net assets of $43.2 billion, compared to $38.5 billion at the end of the previous quarter. The $4.6 billion increase in assets consisted of $0.4 billion in net income and $4.2 billion in net transfers from the CPP. The additional CPP account’s net return was 0.9% for the quarter, and the five-year annualized net return was 4.7%.

The additional CPP was designed with a different legislative funding target and contribution rate compared to the base CPP. Given the differences in its design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.

Furthermore, due to the differences in its net contribution profile, the additional CPP account’s assets are also expected to grow at a much faster rate than those in the base CPP account.

Long-Term Financial Sustainability

Every three years, the Office of the Chief Actuary of Canada, an independent federal body that provides checks and balances on the future costs of the CPP, evaluates the financial sustainability of the CPP over a long period. In the most recent triennial review published in December 2022, the Chief Actuary reaffirmed that, as at December 31, 2021, both the base and additional CPP continue to be sustainable over the long term at the legislated contribution rates.

The Chief Actuary’s projections are based on the assumption that, over the 75 years following 2021, the base CPP account will earn an average annual rate of return of 3.69% above the rate of Canadian consumer price inflation. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.27%.

CPP Investments continues to build a portfolio designed to achieve a maximum rate of return without undue risk of loss, while considering the factors that may affect the funding of the CPP and its ability to pay benefits as they become due. The CPP is designed to serve today’s contributors and beneficiaries while looking ahead to future decades and across multiple generations. Accordingly, long-term results are a more appropriate measure of CPP Investments’ performance and plan sustainability.

Operational Highlights

Executive announcements

• Priti Singh was appointed Senior Managing Director & Chief Risk Officer (CRO). In this role she is responsible for our global risk management functions, including incorporating risk perspectives into all investment and operational processes. She previously served as Senior Managing Director & Global Head of Capital Markets and Factor Investing.

• Heather Tobin was appointed to Senior Managing Director & Global Head of Capital Markets and Factor Investing. In this role, she is responsible for leading the External Portfolio Management, Systematic Strategies, Investment Engineering & Analytics, and Strategy, Risk & Operations groups. Most recently, she was Managing Director, Head of Investment Portfolio Management in the Office of the Chief Investment Officer. She has joined the executive team.

• Caitlin Gubbels is promoted to the role of Senior Managing Director & Global Head of Private Equity, effective October 15. In this role she will lead our Private Equity program globally, including the teams dedicated to investments in Direct Private Equity, Private Equity Asia, and Private Equity Funds and Secondaries. Most recently, she was Managing Director, Head of Funds. She will join the executive team.

• After 17 years with CPP Investments, Suyi Kim has decided to take on new global investment leadership opportunities outside of the organization. Suyi has been a valuable partner and contributor to CPP Investments’ success: she opened our Asia Pacific regional office in Hong Kong in 2008 establishing it as an important hub for our global investment strategy and most recently led our Private Equity business globally out of Toronto and New York, which is one of the largest in the world.  She will remain with the organization until November to ensure a smooth transition.

• After more than 30 years in risk management, Kristen Walters will be leaving CPP Investments to be closer to home. Walters has made a significant contribution in establishing the CRO role as a standalone function and setting the enterprise risk strategy and we thank her for her service to CPP Investments.

Corporate developments

• Hosted our first two in-person public meetings for fiscal 2025 in April, which provided an accessible forum for CPP contributors and beneficiaries to ask questions of our senior leaders. Additional meetings, including a national virtual meeting, will be held in the fall to reflect our continued accountability to the CPP’s more than 22 million contributors and beneficiaries. Public meetings are held every two years across Canada.

First-Quarter Investment Highlights

Active Equities

• Realized a partial interest of our stake in Viking Holdings for net proceeds of C$714 million through the company’s initial public offering. Viking Holdings is a global cruise operator and travel company. Our initial investment in the company was made in 2016 and we continue to own a 15% stake.

Credit Investments

• Invested approximately €200 million in mezzanine financing to support Sosteneo’s acquisition of a 49% interest in Enel Libra Flexsys S.r.l., which owns and operates a portfolio of 23 battery energy storage system projects and three open-cycle gas turbine projects in Italy, with a total capacity of 2.6 gigawatts.

• Invested US$250 million in a loan facility to support the merger of two Indian pharmaceutical contract development & manufacturing organizations, Cohance Lifesciences and Suven Pharma, which are owned by Advent International.

• Invested US$100 million in a mezzanine loan secured against The Diplomat Beach Resort, a 1,000-room full-service luxury resort located on Hollywood Beach in Fort Lauderdale, Florida.

• Invested US$100 million in a mezzanine loan secured against 640 Fifth Avenue, a 315,000-square foot mixed-use property located in Manhattan, New York City.

• Expanded an existing relationship with Affirm for a committed capacity of up to US$1.4 billion in outstanding loan portfolio balance. A leading U.S. payments provider, Affirm originates unsecured loans that enable consumers to pay over time without late or hidden fees.

• Invested US$250 million in a loan facility to support CoreWeave, Inc. to purchase contracted Nvidia Graphics Processing Units (GPU) servers for cloud computing. Based in the U.S., CoreWeave provides cloud infrastructure at scale to support artificial intelligence and machine learning workstreams and is one of the largest purchasers of Nvidia GPUs.

• Invested C$185 million in an Indian Rupee-denominated loan facility to Enfinity Global to build 1.2-gigawatts of solar and wind power plants in India. Based in the U.S., Enfinity Global is a renewable energy and sustainable services company with a 22.4-gigawatt portfolio of solar, onshore wind and battery storage assets.

• Completed the sale of Amitra Capital Limited to Arrow Global Group Limited. Established in 2018, Amitra Capital specializes in managing European non-performing loans and real estate investments. We retain a majority direct economic interest in all the portfolios managed by Amitra Capital. Subsequent to the sale, we committed an additional €300 million to refinance existing loan facilities.

• Invested US$100 million in the preferred equity of Excelitas, a leading U.S.-based photonics technology company specializing in sensing, detection, imaging and illumination solutions.

• Invested US$353 million in an amend-and-extend of a senior secured term loan for Straive, a business process outsourcing company focused on education, data and publishing verticals, with operations primarily in India and the Philippines.

Private Equity

• Committed US$200 million to Clearlake Capital Partners VIII, L.P., which will deploy capital across private equity, credit and other related strategies primarily in North America.

• Committed US$600 million to Thoma Bravo XVI, L.P., which will target control-oriented software buyouts in the application, infrastructure and cybersecurity sub-sectors within North America and Europe.

• Committed US$100 million to Brookfield Capital Partners VI, which will primarily make control investments in industrials, business services, and infrastructure services companies globally.

• Committed approximately €77 million to Barley (No. 1) Limited Partnership, a single asset continuation vehicle for a leading European specialty ingredients distributor.

• Invested US$86 million alongside Silver Lake in Vantage Data Centers (Vantage). Based in the U.S., Vantage provides data center campuses to cloud providers and large enterprises globally.

• Invested US$110 million for a minority stake in Adevinta, a leading online classifieds platform in Europe, alongside Blackstone and Permira.

• Invested US$100 million for an approximate 14% stake in The Rawlings Group, a U.S.-based provider of cost containment services for health insurance clients, alongside New Mountain Capital.

• Invested US$220 million to acquire interests in two funds and two healthcare co-investments managed by Avista Capital Partners, which invests in high-growth middle-market product and technology healthcare companies in North America and Europe.

• Committed US$450 million to Ontic, a provider of specialized parts and repair services for established aerospace technologies. Ontic is headquartered in the U.K.

• Committed US$50 million to Scale AI, a U.S.-based platform which combines advanced machine learning algorithms with human intelligence to accelerate the creation of high-quality training data for AI models.

• Committed US$100 million to Kedaara Capital Fund IV, which will focus on mid-market buyout and minority growth investments in India.

• Agreed to sell our ownership stake in Dorna Sports, an international sports management, media and marketing company, which holds the global rights to organize the MotoGP and WSBK Championships. Net proceeds from the transaction are expected to be approximately C$1.9 billion, of which approximately 75% is in cash and 25% in Series C Liberty Formula One tracking stock. Our original investment was made in 2013.

Real Assets

• Committed €500 million to Blackstone Real Estate Partners Europe VII, which invests in under-managed, well-located real estate assets across Europe.

• Entered into a definitive agreement to jointly acquire ALLETE, Inc. alongside Global Infrastructure Partners for US$6.2 billion, including the assumption of debt. Headquartered in Duluth, Minnesota, ALLETE is focused on addressing the clean-energy transition by expanding renewables, reducing carbon, enhancing grid resiliency, and driving innovation. Upon closing, our ownership stake in ALLETE will be 40%.

• Announced a follow-on equity investment commitment of up to US$300 million to Encino Acquisition Partners, a Houston-based oil and gas company with a diverse portfolio of assets and focus on sustainability, to support development of the Utica oil play. We have been invested in the company since 2018.

Transaction Highlights Following the Quarter

• Sold our stake in One Paramount 1, a Grade A office development in Chennai, India. Net proceeds from the sale were US$52 million. The initial investment was made in 2021 in a joint venture with RMZ Corp in India to hold and develop commercial real estate assets.

• Committed to invest up to £75 million in a mezzanine loan facility supporting ThinCats, an alternative lender to mid-sized businesses in the U.K.

• Invested US$75 million alongside Kainos in Gehl Foods, a U.S.-based developer and manufacturer of shelf-stable protein drinks, plant-based milks, soups, cheese sauces and chili to blue chip brands, retailers, and foodservice customers across North America.

• Committed US$75 million to Radical Growth I, managed by Radical Ventures, an AI-focused venture and growth manager with offices in Toronto, San Francisco, and London. The total commitment now stands at US$204 million across various fundraising cycles since the initial investment in 2019.

• Exited our approximate 6% stake in Delhivery, India’s largest integrated third-party logistics service provider. Net proceeds from the sale were C$298 million. Our initial investment in the company was made in 2019.

• Committed approximately €550 million to acquire an approximate 20% stake in team.blue, a leading webhosting services provider and digital enabler for entrepreneurs and small and medium-sized businesses across Europe.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2024, the Fund totalled $646.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Disclaimer

Certain statements included in this press release constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking statements are made and disclosed in reliance upon the safe harbor provisions of applicable United States securities laws. Forward-looking information and statements include all information and statements regarding CPP Investments’ intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. The forward-looking information and statements are not historical facts but reflect CPP Investments’ current expectations regarding future results or events. The forward-looking information and statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including available investment income, intended acquisitions, regulatory and other approvals and general investment conditions. Although CPP Investments believes that the assumptions inherent in the forward-looking information and statements are reasonable, such statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CPP Investments does not undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. The information contained on CPP Investments’ website, LinkedIn, Facebook and Twitter are not a part of this press release. CPP INVESTMENTS, INVESTISSEMENTS RPC, Canada Pension Plan Investment Board, L’OFFICE D’INVESTISSEMENT DU RPC, CPPIB and other names, phrases, logos, icons, graphics, images, designs or other content used throughout the press release may be trade names, registered trademarks, unregistered trademarks, or other intellectual property of Canada Pension Plan Investment Board, and are used by Canada Pension Plan Investment Board and/or its affiliates under license. All rights reserved.

¹ Certain figures may not add up due to rounding.

TORONTO, ON (August 14 2024): John Graham, President & CEO, Canada Pension Plan Investment Board (CPP Investments) announced today a senior executive leadership appointment, effective October 15, 2024.

Caitlin Gubbels has been promoted to Senior Managing Director & Global Head of Private Equity and will join the Senior Management Team. In this role she will lead our Private Equity program globally, including the teams dedicated to investments in Direct Private Equity, Private Equity Asia and Private Equity Funds and Secondaries. Gubbels takes over from Suyi Kim, who has decided to leave the organization after 17 successful years at CPP Investments to take on new global investment leadership opportunities.

“Since joining CPP Investments 14 years ago, Caitlin has played an important role in the growth and success of our private equity investments,” said John Graham, President & CEO. “Caitlin’s proven ability to build relationships and generate returns across private equity opportunities makes her ideally suited to take on this expanded leadership role and contribute meaningfully to the Senior Management Team.”

Gubbels joined CPP Investments in 2010, and was most recently Managing Director, Head of Funds where she leads the Private Equity Funds business. Prior to joining CPP Investments, she worked at CIBC World Markets in investment banking, based in Toronto. Caitlin holds a Bachelor of Commerce from Dalhousie University.

“Suyi leaves with our deep gratitude, having contributed significantly to the organization’s success during her 17-year tenure. She opened our Hong Kong office in 2008, establishing our presence in the Asia Pacific region and most recently led our Private Equity business globally out of Toronto and New York, which is one of the largest and most respected in the world. She has been a valuable advisor and partner on the Senior Management Team, and we wish her all the best in the next stage of her career,” Graham added.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2024, the Fund totaled $646.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Toronto, CANADA (Aug 13, 2024) – Canada Pension Plan Investment Board (CPP Investments) announced today that it has signed and closed a definitive agreement to invest approximately $843 million (C$1.2 billion) in Tallgrass Energy, a leading energy infrastructure company.

Based in Denver, Colorado, Tallgrass is a leading infrastructure company operating a network of more than 10,000 miles of pipeline assets across 14 states in the U.S. The company is currently engaged in several initiatives aligned with the global transition to a lower-carbon future, including the development of CO2, hydrogen, renewable fuels, and decarbonized power assets.

“With a business strategy that combines traditional energy and decarbonization solutions, Tallgrass is an attractive investment opportunity because of its dual role in delivering against growing energy needs and increasing decarbonization opportunities,” said Bill Rogers, Managing Director, Global Head of Sustainable Energies at CPP Investments. “We are excited to partner with Blackstone and combine our investment and energy expertise to help support the Tallgrass team.”

Matthew Runkle, a Senior Managing Director and Head of Renewables and Midstream within the Infrastructure Group at Blackstone, added, “Over the last five years, we have worked closely with Matt Sheehy and the Tallgrass management team to develop and operate industry-defining large-scale energy infrastructure. We are delighted to welcome our long-term partner, CPP Investments, as a new investor in Tallgrass, combining our resources to support Tallgrass for continued growth.”

CPP Investments’ Sustainable Energies group is active across the global energy system, with net assets totaling approximately C$34.2 billion as at March 31, 2024, including investments in renewables, conventional energy, carbon capture and storage, distributed and energy services, and emerging and disruptive technologies

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2024, the Fund totalled C$632.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

One Paramount 1, Chennai is a Grade A prime office asset, comprising 2.4 million square feet (msf) of leasable space

Mumbai (August 6, 2024) – RMZ Corporation, one of India’s largest family-run alternative asset owners, and Canada Pension Plan Investment Board (CPP Investments) announced that they have completed the sale of One Paramount 1 to Singapore-based Keppel Ltd., for US$264 million.

One Paramount 1 is part of One Paramount, a Grade A prime office asset located in Chennai developed by the real estate joint venture between RMZ and CPP Investments. Strategically situated in Porur, One Paramount 1 is spread across 12.6 acres of land with 2.4 million square feet of leasable space. The asset comprises three modern office towers, boasting of spacious floor plates, complemented by support retail and amenities. It features a diverse tenant mix including global industry leaders like DOW Chemicals, Nielsen IQ, UPS, Maersk, Bechtel, Genpact, Hitachi Energy and VMware among others.

Commenting on the development, Arshdeep Sethi, President RMZ Real Estate said, “The divestment of One Paramount 1 reflects our commitment to efficient capital management, allowing us to reallocate resources into newer, high-growth opportunities within our portfolio. This transaction not only reflects strong investor confidence in India’s commercial real estate sector but also emphasises RMZ’s commitment to unlock immense stakeholder value. Keppel’s acquisition of One Paramount 1 reinforces investor appetite for Grade A office assets in the top office markets of India.”

As part of their partnership, RMZ and CPP Investments will continue to hold stakes in additional ~12.5 million square feet of core and under development commercial assets spread across five Indian cities. The joint venture witnessed the development of RMZ One Paramount in Chennai and prime office assets like RMZ Nexity and RMZ Spire in Hyderabad.

Hari Krishna, Managing Director and Head of Real Estate India, CPP Investments said, “India is one of the fastest growing economies in the world and an important market for us in Asia. We have been able to capture the country’s growth opportunities in the real estate sector through our partnership with RMZ. The sale of One Paramount 1 represents an opportunity to monetize a quality asset to deliver returns to the CPP Fund.”

Net proceeds to CPP Investments from the sale will be approximately US$52 million.

The substantial inflows of foreign capital into India’s real estate market underlines the nation’s economic rise. This trend is reflected in the performance of the first half of 2024, wherein Foreign Institutional Investors (FIIs) contributed a substantial US$3.1 billion, accounting for 65% of the total US$4.8 billion invested in the sector.¹

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2024, the Fund totalled C$632.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

¹ JLL – https://www.business-standard.com/industry/news/investments-in-indian-real-estate-rise-to-record-4-8-bn-in-h1-2024-report-124070500497_1.html

TORONTO, ON (July 17, 2024): John Graham, President & CEO, Canada Pension Plan Investment Board (CPP Investments) announced today two senior executive leadership appointments.

Priti Singh is appointed as Senior Managing Director & Chief Risk Officer (CRO), effective immediately. In this role she will be responsible for our global risk management functions, including incorporating risk perspectives into all investment and operational processes. She most recently served on the executive team as Senior Managing Director & Global Head of Capital Markets and Factor Investing.

Heather Tobin has been promoted to Senior Managing Director & Global Head of Capital Markets and Factor Investing, effective immediately. In this role, she will be responsible for leading the External Portfolio Management, Systematic Strategies, Investment Engineering & Analytics and Strategy, Risk & Operations groups. She was previously Managing Director, Head of Investment Portfolio Management in the Office of the Chief Investment Officer, responsible for active portfolio design and recommendations on investment signals. She will join the organization’s executive team.

“These appointments position us well to continue building long-term value for the CPP Fund. Priti’s leadership, knowledge of the Fund and experience in investment risk management have been valuable to the CPP Investments’ senior management team – all attributes that position her well to step into the CRO role,” said John Graham, President & CEO. “In addition, Heather’s deep experience across multiple departments in the organization makes her ideally suited to take on expanded leadership roles. This promotion demonstrates the bench strength we continue to cultivate throughout the organization.”

After more than 30 years in risk management, Kristen Walters will be leaving CPP Investments to be closer to home. Walters has made a significant contribution in establishing the CRO role as a standalone function and setting the enterprise risk strategy and we thank her for her service to CPP Investments.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2024, the Fund totalled $632.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

• Investment supports team.blue’s  position as Europe’s leading digital enabler for entrepreneurs and SMBs (Small and Medium-sized Businesses).
• The transaction values team.blue at €4.8bn making it one of the largest privately owned technology companies in Europe, serving 3m SMBs/entrepreneurs across 22 European countries with an unbroken 20y+ growth track record.
• The investment is a significant milestone for the team, implying growth of eight-times since Hg first invested in 2019. Today team.blue has more than 2,500 fully committed colleagues, including many tech entrepreneurs who have joined the group and continue to build the business.
• This new investment will support team.blue’s growth strategy, underpinned by a vision to provide ever more valuable online tools for businesses, with further AI-led product innovation.
• CPP Investments joins Hg as well as founder and President of team.blue Jonas Dhaenens and co-founder Ali Niknam, who remain cornerstone investors alongside the wider management team led by CEO Claudio Corbetta.
• Hg will provide further funds to fuel product innovation and expansion through acquisitions.

Gent, Belgium. (10^th July, 2024) team.blue, Europe’s leading digital enabler for entrepreneurs and SMBs, today welcomes a significant investment from Canada Pension Plan Investment Board (“CPP Investments”.)

Today the business represents one of the largest European digital  solution providers to 3.3m SMB customers across 22 countries. team.blue continues expanding its product offering to cover all end-to-end and evolving needs of customers, helping them to remain relevant, competitive and successful end-to-end in their digital journey. These solutions are designed to enhance security, ensure GDPR compliance, boost visitor attraction and conversion rates, improve customer engagement through various marketing tools, and assist in both online and offline commerce strategies.

The transaction values team.blue at €4.8bn making it one of the largest privately owned technology companies in Europe. This investment represents an important milestone for the team.blue group – today team.blue has more than 2,500 fully committed colleagues, including many tech entrepreneurs that have joined, and thrived, with the business over the past five years to continue its dynamic culture. team.blue is actively investing in innovative products by joining forces with leading SaaS companies in Europe that share the same vision.

Jonas Dhaenens, Founder and President, Claudio Corbetta, CEO, and Dawn Marriott, Executive Chair of team.blue said: “This is a truly significant moment for our team and the many entrepreneurs who have joined us over the years. We are delighted to welcome CPP Investments, a leading global institutional investor with values that closely align with our own. CPP Investment’s approach as a long-term patient capital investor is perfectly suited to our vision for sustained growth. Alongside our existing shareholders, CPP Investments recognises the growth ahead, underpinned by our plan to provide increasingly relevant online tools for businesses. We thank Hg for their continued support and warmly welcome CPP Investments as we pursue our ambitious growth plans together.”

“team.blue operates in an attractive, resilient and growing online presence sector. Under its current leadership, the business has executed on a successful M&A strategy to expand its product offerings and local presence across multiple European countries,” said Hafiz Lalani, Managing Director, Global Head of Direct Private Equity, CPP Investments. “We look forward to working alongside Hg, a long-standing partner to CPP Investments, and the team.blue founders and leadership team, to support the platform as it continues on its journey to deliver on multiple growth vectors by expanding its portfolio of SaaS solutions, while delivering attractive risk-adjusted returns for CPP contributors and beneficiaries.”

Joris Van Gool, Nick Jordan and Matthijs Deroo at Hg said: “It’s been incredible to see our thesis play out over the last five years, with team.blue evolving into one of the largest tech platforms in Europe. Together we are building a multibillion category leader, offering multiple propositions for an ever-wider group of SMBs, enabling both online presence and better business success. We are proud of these achievements, partnering with multiple entrepreneurs who are now part of the group, and with ambitious plans to welcome many more in years to come. And today we welcome CPP Investments as a new partner, whose well-placed trust in a highly capable management supports a strong outlook for growth.”

CPP Investments has committed approximately €550 million to acquire a ~20% interest in team.blue. Hg remains the largest single investor in team.blue.

team.blue was advised by Arma Partners, EY, Bain, Deloitte, Linklaters and BearingPoint; team.blue’s shareholders were advised by Harris Williams, KPMG, MacFarlanes and Norbruis Clement; and CPP Investments was advised by Kirkland & Ellis, JP Morgan, OC&C, Palo Alto Strategy Group and KPMG.

About team.blue

team.blue is a leading digital enabler for businesses and entrepreneurs across Europe (Belgium, Bulgaria, Cyprus, Czechia, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, The Netherlands, Portugal, Serbia, Slovakia, Spain, Sweden, Switzerland, Türkiye and United Kingdom). The company is made up of 60+ successful brands who serve 3,3 million customers. team.blue is a one-stop partner for web hosting, domains, e-commerce, online compliance, lead generation and application solutions, supported by more than 2.500 experts. team.blue’s vision is to make online business simpler by shaping technology and providing customers with innovative online products and services.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2024, the Fund totalled $632.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About Hg

Hg supports the building of sector-leading enterprises that supply businesses with critical software applications or workflow services, delivering a more automated workplace for their customers. This industry is characterised by digitization trends that are in early stages of adoption and are set to transform the workplace for professionals over decades to come. Hg’s support combines deep end-market knowledge with world class operational resources, together providing compelling support to entrepreneurial leaders looking to scale their business – businesses that are well invested, enduring and serve their customers well.

With a vast European network and strong presence across North America, Hg’s 400 employees and around $70 billion in funds under management support a portfolio of around 50 businesses, worth over $150 billion aggregate enterprise value, with around 110,000 employees, consistently growing revenues at more than 20% annually. https://hgcapital.com/

All figures in Canadian dollars unless otherwise noted.

Highlights¹:

• Net assets increase by $62.3 billion
• Net annual return of 8.0%
• 10-year net return of 9.2%
• Cumulative net income of $432.4 billion since inception in 1999

TORONTO, ON (May 22, 2024): Canada Pension Plan Investment Board (CPP Investments) ended its fiscal year on March 31, 2024, with net assets of $632.3 billion, compared to $570.0 billion at the end of fiscal 2023. The $62.3 billion increase in net assets consisted of $46.4 billion in net income and $15.9 billion in net transfers from the Canada Pension Plan (CPP).

The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved a net return of 8.0% for the fiscal year. Since the CPP is designed to serve multiple generations of beneficiaries, evaluating the performance of CPP Investments over extended periods is more suitable than in single years. The Fund returned a 10-year annualized net return of 9.2%. Since its inception in 1999, CPP Investments has contributed $432.4 billion in cumulative net income to the Fund.

“The CPP Fund’s growth this year continued the trend of reaching heights several years ahead of initial actuarial projections,” said John Graham, President & CEO. “Solid performance by all of the investment departments and key corporate functions helps demonstrate how our strategy is on track.”

Annual results were positively impacted by strong public equity market performance, gains in our private equity portfolio, as well as investments in credit, infrastructure and energy. This was offset by overall weaker performance of emerging markets compared to developed markets and lower performance of real estate assets.

“Since the creation of CPP Investments 25 years ago, we have made a number of strategic decisions that have generated significant value above initial projections, with investment returns comprising more than two-thirds of total Fund assets to date,” added Graham. “As we head into our next quarter century, we are mindful of continuing geopolitical and economic uncertainties that may affect the investment environment, however, we have strong conviction that our people and our strategy will allow us to continue to deliver on our mandate for generations to come.”

Performance of the Base and Additional CPP Accounts

The base CPP account ended the fiscal year on March 31, 2024, with net assets of $593.8 billion, compared to $546.2 billion at the end of fiscal 2023. The $47.6 billion increase in net assets consisted of $44.4 billion in net income and $3.2 billion in net transfers from the CPP. The base CPP account achieved an 8.1% net return for the fiscal year and a five-year annualized net return of 7.8%.

The additional CPP account ended the fiscal year on March 31, 2024, with net assets of $38.5 billion, compared to $23.8 billion at the end of fiscal 2023. The $14.7 billion increase in net assets consisted of $2.0 billion in net income and $12.7 billion in net transfers from the CPP. The additional CPP account achieved a 5.7% net return for the fiscal year and a five-year annualized net return of 4.9%.

The additional CPP was designed with a different legislative funding target and contribution rate compared to the base CPP. Given the differences in their design, the additional CPP has had a different market risk target and investment profile since its inception in 2019. As a result of these differences, we expect the performance of the additional CPP to generally differ from that of the base CPP.

Furthermore, due to the differences in their net contribution profiles, the assets in the additional CPP account are also expected to grow at a much faster rate than those in the base CPP account.

Long-Term Financial Sustainability

Every three years, the Office of the Chief Actuary of Canada, an independent federal body that provides checks and balances on the future costs of the CPP, evaluates the financial sustainability of the CPP over a long period. In the most recent triennial review published in December 2022, the Chief Actuary reaffirmed that, as at December 31, 2021, both the base and additional CPP continue to be sustainable over the long term at the legislated contribution rates.

The Chief Actuary’s projections are based on the assumption that, over the 75 years following 2021, the base CPP account will earn an average annual rate of return of 3.69% above the rate of Canadian consumer price inflation. The corresponding assumption is that the additional CPP account will earn an average annual real rate of return of 3.27%.

Relative Performance

The CPP is designed to serve today’s contributors and beneficiaries while looking ahead to future decades and across multiple generations. CPP Investments was created to invest and help grow the CPP Fund, maximizing returns without undue risk of loss.

CPP Investments expresses our risk targets through simple, two-asset class Reference Portfolios comprising a mix of Canadian governments’ bonds and global public equities (including Canada). The Reference Portfolios reflect the targeted level of market risk that we believe will maximize returns for each of the base CPP and additional CPP accounts, while also serving as a point of measurement when assessing the Fund’s performance over the long term. CPP Investments’ performance relative to the Reference Portfolios can be measured in percentage or dollar terms, after deducting all expenses.

On a relative basis, the aggregated Reference Portfolios’ return of 19.9% exceeded the Fund’s net return of 8.0% by 11.9%. As a result, in fiscal 2024, net value-added for the Fund was negative 11.9% or negative $64.1 billion. Over the five-year and 10-year periods, net value-added was negative 2.0% and negative 0.3%, respectively.

CPP Investments has deliberately and prudently constructed a portfolio that is significantly more diversified than the Reference Portfolios, by asset type, region and sector, and includes considerable weightings in private equity and real assets. This is designed to ensure portfolio resilience against the volatility that can impact net value-added – as experienced this year – and generate more consistent returns compared with a portfolio that is mainly exposed to public equity markets. In fiscal 2024, strong performance of the U.S. public equity market, led by technology stocks, was reflected in the performance of the Reference Portfolios.

For information on which of our decisions we believe are adding the most value, please refer to page 37 of the CPP Investments Fiscal 2024 Annual Report.

Asset Class and Geography Composition

CPP Investments, inclusive of both the base CPP and additional CPP Investment Portfolios, is diversified across asset classes and geographies.

¹ Refer to page 69 of the Annual Report for a breakdown of the composition of each asset class.
² Credit consists of public and private credit investments, of which $59.8 billion forms part of the Active Portfolio and $19.5 billion forms part of the Balancing Portfolio as at March 31, 2024, both managed by the Credit Investments department.

Performance by Asset Class and Geography

Five-year Fund returns by asset class and geography are reported in the tables below. In fiscal 2024, both emerging and developed markets contributed positively to our annual and five-year returns. A more detailed breakdown of performance by investment department is included on page 47 of the Fiscal 2024 Annual Report.

Managing CPP Investments Costs
Discipline in cost management is a main thrust of our public accountability as we continue to build an internationally competitive enterprise that seeks to create enduring value for multiple generations of beneficiaries of the CPP.

To generate $46.4 billion of net income, CPP Investments directly and indirectly incurred $1,617 million of operating expenses, $1,449 million in investment management fees and $2,067 million in performance fees paid to external managers, as well as $427 million of transaction-related expenses.

Operating expenses increased by $77 million due to inflationary pressure impacting salaries, employee benefits, and our technology infrastructure. Our operating expense ratio was 27.5 basis points (bps), which is below the five-year average of 28.3 bps and below the 28.6 bps in fiscal 2023.

Management fees decreased by $10 million, remaining broadly in line with the prior year. Performance fees increased by $302 million driven by more realization events in the private equity portfolio compared to the prior year.

Transaction-related expenses, which increased by $11 million, vary from year to year according to the number, size and complexity of our investing activities. Other categories affecting our total cost profile include taxes and expenses associated with various forms of leverage.

Page 26 of the Fiscal 2024 Annual Report provides a discussion of how we manage our costs. For a complete overview of CPP Investments combined expenses, including year-over-year comparisons, refer to page 45.

Operational Highlights for the Year

Corporate developments

• Ranked one of the world’s top-performing public pension funds by Global SWF when measuring annualized returns between fiscal years 2014 and 2023 (Global SWF Data Platform, May 2024).

• Issued a joint statement with Canada’s leading pension plan investment managers that calls on companies to embrace the new International Sustainability Standards Board disclosure framework. The new framework will help to improve trust and confidence in company disclosures about sustainability to inform investment decisions.

Board appointments

• Welcomed the designation of Dean Connor as Chairperson of the Board of Directors, effective October 27, 2023. Mr. Connor succeeded Dr. Heather Munroe-Blum, CPP Investments’ Chairperson since 2014, whose final term as Chairperson and Director expired in October. Mr. Connor has served on the Board since August 2021.

• Welcomed the appointment of Nadir Mohamed to the Board of Directors and the reappointments of Ashleigh Everett, John Montalbano, Mary Phibbs and Boon Sim as Directors of the Board for three-year terms effective October 2023.

Executive announcements

• Separated the roles of Chief Investment Officer (CIO) and Head of Total Fund Management to allow for more dynamic management of our portfolio, as well as balance sheet management and tactical positioning. CIO Edwin Cass now oversees all investment departments and Manroop Jhooty was appointed Senior Managing Director & Head of Total Fund Management, where he leads the balancing and financing portfolio, which is invested in global public securities, as well as balance sheet management, tactical positioning, trading and portfolio design.

Transaction Highlights for the Year

Active Equities

• Completed an investment in Inspira, one of Brazil’s leading private K-12 education providers, serving over 57,000 students across more than 100 schools, in a R$1 billion (C$270 million) investment round led by Advent International.

• Invested C$534 million in KPN, bringing our ownership stake to 2.9%. KPN is a leading telecommunications company in the Netherlands.

• Invested C$400 million in SK Hynix, a South Korean supplier of dynamic and flash memory chips, increasing our ownership stake to 0.4%.

• Invested an additional C$258 million in LY Corp., a Japanese holding company that owns and manages a portfolio of businesses including Yahoo! Japan, increasing our ownership stake to 3%.

• Invested C$435 million for a stake of approximately 1% in Evolution AB, a Sweden-based company that develops, produces, markets and licenses online casino solutions to gaming operators.

Credit Investments

• Committed US$325 million to TPG AG Essential Housing Fund III, which provides financing to U.S. single-family homebuilders for production-ready, fully entitled land.

• Formed a US$750 million strategic capital partnership with Redwood Trust, Inc., a publicly listed U.S. mortgage real estate investment trust. The partnership consists of a newly formed US$500 million Asset Joint Venture and a US$250 million corporate secured financing facility to Redwood Trust.

• Committed US$300 million to an India-based asset manager that focuses on structured and private credit opportunities in the country.

• Committed to provide up to US$138 million in financing to VoltaGrid LLC through a term loan. Based in the U.S., VoltaGrid is an energy management and generation company, which provides power, alternate fuels and emissions reduction solutions.

• Committed US$500 million to Quantum Capital Solutions Fund II, which will invest primarily in asset-level joint ventures and hybrid credit investments within the conventional energy sector in the U.S.

• Invested US$100 million in financing to support EQT’s acquisition of Zeus, a leading contract manufacturer in the medical devices industry based in the U.S.

• Invested £93 million in a debt facility to Vårgrønn, owner of a 20% stake in Dogger Bank Wind Farm, which is an offshore wind farm currently under construction, located off the coast of the U.K.

• Entered into a newly formed venture with Blackstone Real Estate Debt Strategies, Blackstone Real Estate Income Trust, Inc., and funds affiliated with Rialto Capital and acquired a 20% equity stake for US$1.2 billion in a venture that holds a US$16.8 billion senior commercial mortgage loan portfolio, primarily located in the New York metropolitan area.

• Invested A$300 million (C$268 million) in a first-lien term loan to TEG, a leading integrated live entertainment and ticketing service provider in Australia.

• Committed to invest C$197 million in financing to support CapVest Partners in its acquisition of Recochem. Headquartered in Canada, Recochem is a global manufacturer and distributor of aftermarket transportation and household fluids.

Private Equity

• Committed US$50 million to Sands Capital Life Sciences Pulse III. Based in the Washington D.C. area, Sands Capital Life Sciences Pulse III invests in growth-stage life sciences tools, diagnostics, and therapeutics companies primarily in the U.S.

• Invested US$30 million in Sogo Medical Group, a leading dispensing pharmacy chain and hospital services provider in Japan, alongside CVC Capital.

• Invested C$84 million for a minority stake in Plusgrade, alongside General Atlantic. Headquartered in Montreal, Canada, Plusgrade is a leading provider of ancillary revenue optimization solutions for the travel industry.

• Committed €100 million to Montagu VII SCSp, which focuses on Northern European mid-market buyouts in healthcare, critical data, financial services, digital infrastructure and education.

• Invested US$50 million in Zeus, alongside EQT. Based in the U.S., Zeus is a leading contract manufacturer in the medical devices industry.

• Invested US$27 million in HRBrain, a leading human resources software provider in Japan, alongside BPEA EQT Middle Market Growth Fund.

• Closed two commitments with Northleaf Capital Partners, a Toronto-headquartered global private markets investment firm: C$200 million to an evergreen separately managed account that provides access to the Canadian private equity market through mid-market buyout and growth funds, secondary investments and direct investments; and C$50 million to Northleaf Venture Catalyst Fund III, a Canada-focused venture capital fund that invests in Canadian venture capital and growth funds, secondary investments and direct investments.

• Committed €500 million to CVC Capital Partners IX, L.P., which focuses on control and shared-control buyouts across industries primarily in Europe and the Americas.

• Invested NZ$105 million (C$88 million) to acquire a 9.4% stake in Pushpay Holdings Ltd., a New Zealand-headquartered payments software provider for churches, alongside BGH Capital.

• Agreed to the partial realization of our investment in Visma, a leading provider of mission-critical cloud software in Europe, retaining an approximate 2% stake in the company. Net proceeds from the sale are expected to be approximately C$700 million. Our original investment was made in 2019.

• Completed the sale of Inmarsat, a European satellite service provider, to Viasat Inc., a U.S.-based global communications company, in which we now own an approximate 9% stake. Net cash proceeds from the sale were US$206 million.

Real Assets

• Established a new real estate investment and operating platform focused on purpose-built student accommodation (PBSA) in continental Europe through the acquisition of our joint venture partner’s minority stake in Round Hill European Student Accommodation Partnership and the full acquisition of Nido Living, a leading European PBSA operator and manager. Through these combined transactions, we are investing up to C$40 million in the platform.

• Invested INR 18.2 billion (C$297 million) in the units of National Highways Infra Trust (NHIT), an infrastructure investment trust sponsored by the National Highways Authority of India. We have invested INR 36.8 billion (C$614 million) in NHIT since 2021 and hold 25% of the units.

• Funded £380 million in total follow-on investments to Octopus Energy through the fiscal year to support the company’s continued global growth. Octopus Energy is a global clean energy technology pioneer based in the U.K. Our partnership was established in 2021 and we currently have a 12% ownership stake.

• Committed to acquire a 17.5% interest in Netco for up to €2.0 billion as part of the Optics BidCo investor group. Netco is an extensive telecommunications network in Italy. The transaction is expected to close in the summer of 2024.

• Increased our commitment to Boldyn Networks, a leading shared network infrastructure provider in the U.S. and globally, alongside partners AIMCo and Manulife, to support the company’s ongoing growth strategy, including the agreed acquisition of Apogee Telecom. We have committed approximately C$3.5 billion towards Boldyn Networks since 2009 and hold an 86% ownership stake.

• Invested an additional C$540 million in Interise Trust (formerly known as IndInfravit Trust), our Indian toll roads portfolio company, in which we now own a 60.8% stake, to help fund the acquisition of four operating road concessions. In fiscal Q4, we acquired a 50% stake in the Investment Manager of Interise Trust for C$8 million, alongside our partners, OMERS and ACP, who acquired 25% each.

• Signed a definitive agreement in support of the proposed merger between Aera Energy, one of California’s major energy producers, and California Resources Corporation, an independent energy and carbon management company in the U.S. Through this transaction, we will receive newly issued shares of common stock upon close of the transaction, expected to represent approximately 11.2% of the combined company.

• Announced a new partnership with Amsterdam-based Power2X, in which we plan to invest an initial €130 million to accelerate its growth as a development platform and fund green molecule projects. Power2X is a leading European green molecule developer and advisor focused on the decarbonization of industrial value chains.

• Invested C$1,438 million to acquire a 24.99% stake in FCC Servicios Medio Ambiente Holding, SAU, the environmental services division of Spanish conglomerate Fomento de Construcciones y Contratas, S.A. FCC Servicios Medio Ambiente is a leading waste management operator in Iberia, the U.K. and Central Europe, with a growing presence in the U.S.

• Sold our 45% stake in 1455 Market Street, an office building in San Francisco, California. Net proceeds from the sale were approximately US$44 million. Our original investment was made in 2015.

• Signed an agreement to sell our 45% stake in 10 East 53rd Street, an office building in Manhattan, New York. Net proceeds from the sale are expected to be approximately US$7 million. Our original investment was made in 2012.

• Sold three office properties in Houston, Texas, including the Phoenix Tower. Net proceeds from the sales were approximately US$62 million. Our original investments were made in 2017.

• Agreed to a restructure and sale of a 21% partial interest in the Kendall Square Development Venture (KDV I) in South Korea. Net proceeds from the sale will be approximately US$245 million. KDV I is a joint venture set up in 2015 alongside APG and ESR to develop modern logistics real estate assets in prime locations within major strategic logistics hubs in South Korea.

Transaction Highlights Following the Year-End

• Signed an agreement to sell Amitra Capital Limited, which specializes in managing European non-performing loans and real estate investments, to Arrow Global Group Limited. Established in 2019, we retain our current direct economic interest in all of the portfolios managed by Amitra Capital.

• Entered into a definitive agreement to jointly acquire ALLETE, Inc. alongside Global Infrastructure Partners for US$6.2 billion, including the assumption of debt. Headquartered in Duluth, Minnesota, ALLETE is focused on addressing the clean-energy transition by expanding renewables, reducing carbon, enhancing grid resiliency, and driving innovation.

• Committed US$450 million to Ontic, a provider of specialized parts and repair services for established aerospace technologies, headquartered in the U.K.

• Realized a partial interest of our stake in Viking Holdings for expected net proceeds of C$714 million through the company’s initial public offering. Viking Holdings is a global cruise operator and travel company. Our initial investment in the company was made in 2016 and we maintain a 15% stake.

• Committed US$100 million to Kedaara Capital Fund IV, which will focus on mid-market buyout and minority growth investments in India.

• Agreed to sell our ownership stake in Dorna Sports, an international sports management, media and marketing company, which holds the global rights to organize the MotoGP and WSBK Championships. Net proceeds from the transaction are expected to be approximately C$1.9 billion, of which approximately 75% is in cash and 25% in Series C Liberty Formula One tracking stock. Our original investment was made in 2013.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At March 31, 2024, the Fund totalled $632.3 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Disclaimer

Certain statements included in this press release constitute “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbors. All such forward-looking statements are made and disclosed in reliance upon the safe harbor provisions of applicable United States securities laws. Forward-looking information and statements include all information and statements regarding CPP Investments’ intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as “trend,” “potential,” “opportunity,” “believe,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” and similar expressions. The forward-looking information and statements are not historical facts but reflect CPP Investments’ current expectations regarding future results or events. The forward-looking information and statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including available investment income, intended acquisitions, regulatory and other approvals and general investment conditions. Although CPP Investments believes that the assumptions inherent in the forward-looking information and statements are reasonable, such statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CPP Investments does not undertake to publicly update such statements to reflect new information, future events, and changes in circumstances or for any other reason. The information contained on CPP Investments’ website, LinkedIn, Facebook and Twitter are not a part of this press release. CPP INVESTMENTS, INVESTISSEMENTS RPC, Canada Pension Plan Investment Board, L’OFFICE D’INVESTISSEMENT DU RPC, CPPIB and other names, phrases, logos, icons, graphics, images, designs or other content used throughout the press release may be trade names, registered trademarks, unregistered trademarks, or other intellectual property of Canada Pension Plan Investment Board, and are used by Canada Pension Plan Investment Board and/or its affiliates under license. All rights reserved.

¹ Certain figures in the news release may not add up due to rounding.

Fécamp, France, May 15, 2024 – In the presence of the French Minister Delegate for Industry and Energy, Roland Lescure, EDF, through its subsidiary EDF Renewables, EIH S.à.r.l, a subsidiary of Enbridge Inc. and Canada Pension Plan Investment Board (CPP Investments), and Skyborn inaugurated the 497 MW Fécamp Offshore Wind Farm. Located between 13 and 24 km from the northern coast of France, the wind farm will help support France’s energy transition objectives, which aim to achieve a 33% share of renewable energy in its energy mix by 2030.

From the production of its first megawatt-hour in July 2023, to the installation of the 71st wind turbine, the Fécamp Offshore Wind Farm has been progressively connected to the national grid. Today, it can supply nearly 770, 000 people with low-carbon electricity, equivalent to about 60% of the annual electricity consumption of the Seine-Maritime department.

Matthew Akman, Executive Vice President Corporate Strategy and President, Power, Enbridge Inc., said: “The successful completion of the Fécamp Offshore Wind Farm marks a significant milestone for Enbridge and our project partners. Following the successful completion of Saint-Nazaire in 2022, Enbridge continues to advance the development and construction of several offshore wind projects in France, including the Provence Grand Large floating offshore wind project, and the Calvados, Dunkirk and Normandy offshore wind projects. These projects further highlight our commitment to being a leader in the energy transition and providing clean and secure energy to the region. Thank you to our partners – EDF Renewables, CPP Investments, and Skyborn – with whom we have helped to grow the French offshore wind industry.”

Bill Rogers, Managing Director, Global Head of Sustainable Energies, CPP Investments, said: “The global energy transition requires significant long-term and flexible capital, and we are pleased to be bringing our capital and expertise, alongside EDF Renewables, Enbridge and Skyborn, to this flagship infrastructure project. Following the success of our first project alongside our partners, Saint-Nazaire offshore wind farm, the commissioning of Fécamp is an important step in the advancement of France’s offshore wind capacity. Offshore wind projects are a focus of our investment activities as we see significant opportunities in the sector due to global decarbonisation goals and energy needs.”

Luc Rémont, Chairman and CEO, EDF Group, said: “We are very proud to inaugurate the first offshore wind farm in Normandy, less than two years after the commissioning of the Saint-Nazaire wind farm in Loire-Atlantique. I would like to sincerely thank all the players in the Normandy region for their support, all the teams at our subsidiary EDF Renewables and our partners Enbridge, CPP Investments and Skyborn for the work they have accomplished. This new low-carbon electricity production facility would not have been possible without close, ongoing dialogue with elected representatives and local authorities, environmental associations, fishermen, economic players and local residents. The development of the Saint-Nazaire and Fécamp Offshore Wind Farms has contributed to the emergence of the wind industry in France, essential for the development of future wind farms, in particular our Calvados, Dunkirk and Normandy projects.”

Thomas Karst, Chief Executive Officer, Skyborn, said: “We’re proud of everyone’s efforts to realize Fécamp Offshore Wind Farm, a project Skyborn has been committed to since 2007. Commissioning Fécamp is a significant step in advancing the clean energy transition in France and Europe. We extend our gratitude to our partners EDF Renewables for leading the execution and to Enbridge and CPP Investments for their collaboration.”

Working together with the region: a long-term commitment
Throughout the development and construction phases over the past 12 years, the Fécamp Offshore Wind Farm project team has worked in close consultation with all local stakeholders, which has enabled us to best protect the landscape and surrounding environment and help ensure shared use of the sea. Numerous meetings with fishing professionals, residents, elected representatives and other stakeholders have allowed us to successfully complete a project that combines a commitment to the energy transition, consideration of local needs and resources, and respect for the environment. For example, the configuration of the wind farm was adapted, with the turbines aligned in the direction of the current to allow fishing. Cooperation with local stakeholders and environmental monitoring measures will continue throughout the operational phase of the Fécamp Offshore Wind Farm.

A local industrial project in Normandy
For the past three years, the Fécamp Offshore Wind Farm has relied on a network of regional infrastructures and skills to help build the project. This included construction of the 71 gravity-based foundations and production of the wind turbine blades, nacelles and generators in Le Havre, and pre-assembly of components in Cherbourg. In all, the project involved about 3,000 jobs in the Normandy region and represents a total investment of about €2 billion.

With the maintenance base located on the Grand Quai peninsula in Fécamp, around a hundred local jobs have been created to operate the wind farm. Day-to-day tasks will range from planning maintenance operations to optimizing electricity production.

About Enbridge

At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil, and renewable power networks and our growing European offshore wind portfolio. We are investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We are advancing new technologies, including hydrogen, renewable natural gas, and carbon capture and storage, and are committed to achieving net zero greenhouse gas emissions by 2050. Headquartered in Calgary, Alberta, Enbridge’s common shares trade under the symbol ENB on the Toronto (TSX) and New York (NYSE) stock exchanges. To learn more, visit us at enbridge.com.

About EDF
The EDF Group is a key player in the energy transition, as an integrated energy operator engaged in all aspects of the energy business: power generation, distribution, trading, energy sales and energy services. The Group is a world leader in low-carbon energy, with a low carbon output of 434TWh, a diverse generation mix based mainly on nuclear and renewable energy (including hydropower). It is also investing in new technologies to support the energy transition. EDF’s raison d’être is to build a net zero energy future with electricity and innovative solutions and services, to help save the planet and drive well-being and economic development. The Group supplies energy and services to approximately 40.9 million customers ¹and generated consolidated sales of €139.7 billion in 2023.

About EDF Renewables

EDF Renewables is an international energy company that develops, builds and operates renewable energy generation plants. A major player in the global energy transition, EDF Renewables deploys competitive, responsible and value-creating projects within EDF. In each country, our teams are committed to the territories on a daily basis by putting their expertise and innovation capacity to work in the fight against climate change.

At the end of 2023, EDF Renewables has an installed capacity of 12.8 net GW (21.2 gross GW) worldwide.

With a major presence in Europe and North America, the company is also expanding into emerging markets such as: South Africa, Brazil, China, India and the Middle East. Historically active in onshore wind power and photovoltaics, the company is now significantly strengthening its position in land-based and floating offshore wind power, as well as in new technologies such as energy storage, floating solar power and agrivoltaics.

For more information: www.edf-renewables.com

Follow us on Linkedin: https://www.linkedin.com/company/edf-renouvelables and Twitter @EDF_Renewables in English and @EDF_RE in French.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2023, the Fund totalled C$590.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About Skyborn Renewables

Skyborn Renewables is driving global decarbonisation by accelerating offshore wind energy across the world. We believe offshore wind is a cornerstone of the clean energy transition and an enabler to achieve net-zero targets and ensure energy security and a sustainable energy supply for future generations. Skyborn is an accomplished offshore wind developer and operator with more than 20 years’ experience. Our capabilities cover the entire offshore wind value chain, including greenfield development, engineering and design, procurement, financing, corporate power purchase agreements, construction management and asset management. For more information, visit www.skybornrenewables.com

Forward-Looking Information—Enbridge
Forward-looking information, or forward-looking statements, have been included in this news release to provide information about Enbridge Inc. (“Enbridge” or the “Company”) and its subsidiaries and affiliates, including management’s assessment of Enbridge and its subsidiaries’ future plans and operations. This information may not be appropriate for other purposes. Forward-looking information or statements in this news release include statements with respect to estimates of production and supply associated with the Fécamp Offshore Wind Farm.

Although Enbridge believes these forward-looking statements are reasonable based on the information available on the date such statements are made and processes used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Assumptions regarding the expected supply of and demand for renewable energy, and the prices of these commodities, are material to and underlie all forward-looking statements, as they may impact current and future levels of demand for the Company’s services. Due to the interdependencies and correlation of macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty. The most relevant assumptions associated with forward-looking statements on announced projects, including the realization of anticipated benefits, include the following: the impact of litigation and government, regulatory and stakeholder actions and approvals; the effects of inflation and foreign exchange rates on labour and material costs; the effects of interest rates on borrowing costs; technology-related matters; and the impact of weather.

Enbridge’s forward-looking statements are subject to risks and uncertainties, including, but not limited to those risks and uncertainties discussed in this news release and in the Company’s other filings with Canadian and United States securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and Enbridge’s future course of action depends on management’s assessment of all information available at the relevant time. Except to the extent required by applicable law, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise.

¹ Customers are counted per delivery site. A customer may have two delivery points.

London, (13 May, 2024) – Arrow Global Group Limited (‘Arrow Global’), a leading vertically integrated alternative asset manager specialising in credit and real estate, today announced the acquisition of Amitra Capital Limited (‘Amitra Capital’) from Canada Pension Plan Investment Board (‘CPP Investments’). This acquisition significantly expands Arrow’s footprint in Spain and provides a foundation for future collaboration with CPP Investments, focusing on both current and prospective investment opportunities. CPP Investments retains its current direct economic interest in all of the portfolios managed by Amitra Capital.

Founded in 2019 and based in London and Madrid, Amitra Capital specialises in managing European non-performing loans (NPLs) and real estate investments. With assets under management (AUM) totalling over €4.0 billion, Amitra has established a strong presence in the NPL and real estate markets of Spain and Portugal.

Zach Lewy, Founder, CEO, and Chief Investment Officer of Arrow Global, commented: “This acquisition builds on our existing presence in Spain alongside our other operations, including Elba Finance and Galata, it also sets the stage for a broader strategic partnership with CPP Investments. We are excited to extend our platform and servicing capabilities into this key European market and look forward to expanding our partnership with CPP Investments in providing access to investment opportunities, expanding market presence, and delivering value to our clients.”

The acquisition includes a new five-year servicing agreement between Arrow and CPP Investments, emphasising Arrow’s commitment to leveraging its expertise in asset management to enhance portfolio performance. Key management personnel from Amitra Capital will continue to lead the company, ensuring continuity and stability in operations under Arrow.

Derek Jackson, Managing Director, Head of European Credit, from CPP Investments, said: “The sale of Amitra Capital to Arrow Global, and the establishment of a long-term strategic partnership is centred on Arrow Global’s extensive knowledge and experience in real estate asset-backed investments. We have built a strong asset management business in Amitra Capital which is complementary and valuable to Arrow’s franchise, can access the scale and scope of their platform and we look forward to seeing the combined business move from strength to strength.”

The acquisition of Amitra Capital not only expands Arrow’s existing operations in Spain but also strengthens its role as a leading investment and servicing capability in the Iberian market. Coupled with Arrow’s leading Portuguese platforms – Whitestar, Norfin, Restart Capital, Viriato and Details Hospitality, Arrow will continue its strategy of having deep expertise in key market segments, including primary and master servicing, while also enhancing its capability to manage complex credit and real estate investments on behalf of its investors across Europe.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2023, the Fund totalled C$590.8 billion. For more information, please visit www.cppinvestments.com  or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Arrow Global Group

Arrow Global is a leading European vertically integrated alternative asset manager specialising in European private credit and real estate.

Founded in 2005, we own 20 best-in-class asset management and servicing platforms which enhance operational efficiencies and maximise the value of underlying assets through disciplined investment approach, underwriting insight and proprietary dealflow. This vertically integrated advantage allows us to create sustainable value throughout market cycles across a range of alternative asset classes, including opportunistic credit, real estate lending and real estate equity.

With the added benefit of key European regulatory licenses, we service approximately €80 billion of third-party AUM. Our strong track record, predominantly with real estate asset-backed investments, spans a broad range of opportunities and has resulted in more than €10 billion being invested over the last 20 years.

We operate across six European geographies with headquarters in London, and have a further 15 offices including Milan, Rome, Lisbon, Porto, Amersfoort, Amsterdam, Luxembourg, Dublin, Manchester, Leeds, and Jersey.
www.arrowglobal.net

• Positions ALLETE to Execute Clean-Energy Future for Customers, Communities and Employees as a Private Company
• ALLETE to Remain Locally Managed and Operated with Headquarters in Duluth, Minnesota
• Agreement Contains Meaningful Commitments to Retain ALLETE’s Workforce and Maintain Compensation Levels and Benefits Programs
• Utilities Minnesota Power and Superior Water, Light and Power to Continue Being Regulated by Minnesota Public Utilities Commission (MPUC) and Public Service Commission of Wisconsin (PSCW)
• Union Agreements to be Honored
• Shareholders to Receive $67.00 Per Share in Cash

DULUTH, Minn.— May 6, 2024 — ALLETE, Inc. (NYSE: ALE) and a partnership led by Canada Pension Plan Investment Board (“CPP Investments”) and Global Infrastructure Partners (“GIP”), (the “partnership”), today jointly announced that they have entered into a definitive agreement under which the partnership will acquire ALLETE for $67.00 per share in cash, or $6.2 billion including the assumption of debt.

ALLETE is a leading energy company and provider of safe, reliable, and competitively priced energy with a national footprint. Together, ALLETE and its family of companies, which includes regulated utilities and renewable energy companies, are focused on driving the clean-energy transition by expanding renewables, reducing carbon, enhancing grid resiliency, and driving innovation.

“Our ‘Sustainability-in-Action’ strategy has secured ALLETE’s place as a clean-energy leader. Through this transaction with CPP Investments and GIP, we will have access to the capital we need while keeping our customers, communities and co-workers at the forefront of all that we do, with continuity of our day-to-day operations, strategy and shared purpose and values,” said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. “CPP Investments and GIP have a successful track record of long-term partnerships with infrastructure businesses, and they recognize the important role our ALLETE companies serve in our communities as well as our nation’s energy future. Together, we will continue to invest in the clean-energy transition and build on our 100 plus-year history of providing safe, reliable, affordable energy to our customers.”

CPP Investments and GIP are premier, well-resourced infrastructure investors at a global scale with deep industry expertise and long-term outlooks. Together, they bring over four decades of experience investing in large-scale infrastructure businesses across sectors to support sustainable, long-term growth. Both CPP Investments and GIP pride themselves on their responsible investment approach, which is centered on delivering value to their organizations and the communities in which they operate.

Owen continued, “Our ‘Sustainability-in-Action’ strategy will require focused execution and significant capital. Transitioning to a private company with these strong partners will not only limit our exposure to volatile financial markets, it also will ensure ALLETE has access to the significant capital needed for our planned investments now and over the long term. Importantly, CPP Investments and GIP are aligned with ALLETE’s values of safety, integrity, planet and people. They also recognize the importance of our employees and our ties to the communities we serve and in which we operate. To that end, we are proud to remain locally managed as we enter this next chapter as committed as ever to our customers, our communities and our employees. I look forward to all we will achieve together.”

“ALLETE’s management team has done an excellent job leading the company toward a truly sustainable clean-energy future. Together with GIP, we look forward to bringing our sector expertise and long-term capital to support ALLETE’s strong management team as they continue to deliver safe, reliable, affordable energy services to their customers,” said James Bryce, Managing Director and Global Head of Infrastructure, CPP Investments. “ALLETE is at the forefront of the clean energy transition and we are thrilled to support the delivery of the company’s ‘Sustainability-in-Action’ strategy, which we believe will generate substantial value both for ALLETE’s customers and CPP contributors and beneficiaries.”

“We are excited to work with Bethany Owen and the full ALLETE team as they continue to supply affordable and reliable energy services,” said Bayo Ogunlesi, GIP’s Chairman and Chief Executive Officer. “GIP, alongside CPP Investments, look forward to partnering to provide ALLETE with additional capital so they can continue to decarbonize their business to benefit the customers and communities they serve. Bringing together ALLETE, with its demonstrated commitment to clean energy, with GIP, one of the world’s premier developers of renewable power, furthers our commitment to serve growing market needs for affordable, carbon-free and more secure sources of energy.”

Commitment to Employees, Customers and Communities
Under the terms of the merger agreement governing the proposed transaction, several commitments have been made by CPP Investments and GIP to align with ALLETE’s shared purpose, culture and values, including:

• Retaining Workforce: The agreement provides commitments with respect to workforce retention, as well as maintaining compensation levels and benefits programs. The agreement also honors union contracts including our strong partnership with the International Brotherhood of Electrical Workers.
• Maintaining Current Headquarters and Leadership: ALLETE’s Minnesota Power and Superior Water, Light and Power (SWL&P) will continue as independently operated, locally managed, regulated utilities. Bethany Owen will continue as Chief Executive Officer, and the current management team will continue to lead ALLETE and remain as the primary points of contact for customers, regulators and other stakeholders. ALLETE will continue to be headquartered in Duluth, Minnesota.
• Contributing to Community: ALLETE and its family of businesses and the Minnesota Power Foundation will continue to make economic and charitable contributions in its service territories to support vibrant and sustainable communities, close opportunity gaps, and help people of all ages live with purpose and passion. ALLETE will continue to invest corporate resources and employee volunteer hours to help build thriving communities.

In addition, the transaction will support existing commitments made by ALLETE such as:

• ALLETE’s Clean-Energy Goals: All ALLETE companies will remain committed to advancing a clean-energy future, through solar, wind, storage and transmission infrastructure and achieving carbon-free goals of the respective states in which the companies operate.
• Retail or Municipal Rates for Utility Customers: Following the close of the acquisition, Minnesota Power and SWL&P will continue to be regulated by the Minnesota Public Utilities Commission (MPUC), the Public

Service Commission of Wisconsin (PSCW) and the Federal Energy Regulatory Commission (FERC). The acquisition is not expected to impact retail or municipal rates for utility customers.

Terms, Approvals and Timing
In connection with the merger, CPP Investments and GIP will acquire all of the outstanding common shares of ALLETE for $67.00 per share in cash representing an enterprise value of approximately $6.2 billion, including ALLETE’s net debt. This represents a premium of approximately 19.1% to ALLETE’s closing share price on December 4, 2023, the date prior to a media article reporting that ALLETE was exploring a sale. The consideration also represents a 22.1% premium to the 30-day volume weighted average share price prior to that date.

The acquisition was unanimously approved by ALLETE’s Board of Directors and is expected to close in mid-2025, subject to the approval of ALLETE’s shareholders, the receipt of regulatory approvals, including by the MPUC, PSCW and FERC, and other customary closing conditions. Dividends payable to ALLETE shareholders are expected to continue in the ordinary course until the closing, subject to approval by ALLETE’s Board of Directors. Upon completion of the acquisition, ALLETE’s shares will no longer trade on the New York Stock Exchange, and ALLETE will become a private company.

Advisors
J.P. Morgan Securities LLC is acting as lead financial advisor and provided a fairness opinion to ALLETE, and Houlihan Lokey Capital, Inc. also provided a fairness opinion to ALLETE. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor to ALLETE.

Cancellation of First Quarter 2024 Earnings Conference Call
ALLETE will release its financial results for the first quarter as scheduled before the stock markets open on Thursday, May 9, 2024. In light of the announced transaction with CPP Investments and GIP, ALLETE will be cancelling its scheduled earnings conference call.

Additional Resources
Additional information and stakeholder resources are also available on ALLETE’s dedicated transaction website at www.ALLETEforward.com.

About ALLETE, Inc.
ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. ALLETE’s largest business unit, Minnesota Power, is an electric utility which serves 150,000 residents, 14 municipalities, and some of the nation’s largest industrial customers. In addition to Minnesota Power, ALLETE owns Superior Water, Light and Power, based in Superior, Wisconsin, ALLETE Clean Energy, based in Duluth; BNI Energy in Bismarck, N.D.; and New Energy Equity, headquartered in Annapolis, Maryland; and has an 8% equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com. ALE-CORP

ALLETE calculates and reports carbon emissions based on the GHG Protocol. Details in ALLETE’s Corporate Sustainability Report

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2023, the Fund totaled C$590.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About Global Infrastructure Partners (GIP)
Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. With decarbonization central to our investment thesis, we are well positioned to support the global energy transition. Headquartered in New York, GIP has offices in Brisbane, Dallas, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney.
GIP has approximately $112 billion in assets under management. Our portfolio companies have combined annual revenues of approximately $73 billion and employ over 115,000 people. We believe that our focus on real infrastructure assets, combined with our deep proprietary origination network and comprehensive operational expertise, enables us to be responsible stewards of our investors’ capital and to create positive economic impact for communities. For more information, visit www.global-infra.com.

Important Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed transaction. In connection with the proposed transaction, ALLETE, Inc. (“ALLETE”) expects to file a proxy statement on Schedule 14A with the Securities and Exchange Commission (“SEC”). ALLETE also may file other documents with the SEC regarding the merger. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors are or will be able to obtain such documents (if and when available) free of charge at https://www.sec.gov, the SEC’s website, or from ALLETE’s website (https://www.investor.allete.com).

Participants in the Solicitation
ALLETE and its directors, executive officers, other members of management, and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. Information regarding ALLETE’s directors and executive officers is contained in (i) the “Directors, Executive Officers and Corporate Governance,” “Executive Compensation” and “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” sections of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 of ALLETE, which was filed with the SEC on February 20, 2024 and (ii) the “Item No. 1 – Election of Directors,” “Compensation Discussion and Analysis,” and “Ownership of ALLETE Common Stock” sections in the definitive proxy statement for the 2024 annual meeting of shareholders of ALLETE, which was filed with the SEC on March 28, 2024. To the extent the holdings of ALLETE’s securities by ALLETE’s directors and executive officers have changed since the amounts set forth in the proxy statement for its 2024 annual meeting of shareholders, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, will be set forth in the proxy statement and other materials relating to the merger when they are filed with the SEC. You may obtain free copies of these documents using the sources indicated above.

Cautionary Statement Regarding Forward-Looking Information
This communication contains “forward-looking statements” within the meaning of the federal securities laws, including safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the proposed acquisition of ALLETE, shareholder and regulatory approvals, the expected timetable for completing the proposed transaction and any other statements regarding ALLETE’s future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to: failure to obtain the required vote of ALLETE’s shareholders; the timing to consummate the proposed transaction; the risk that the conditions to closing of the proposed transaction may not be satisfied; the risk that a regulatory approval that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; and the diversion of management’s time on transaction-related issues.

When used in this communication, or any other documents, words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “target,” “could,” “goal,” “intend,” “objective,” “plan,” “project,” “seek,” “strategy,” “target,” “may,” “will” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the beliefs and assumptions of management at the time that these statements were prepared and are inherently uncertain. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. These risks and uncertainties, as well as other risks and uncertainties that could cause ALLETE’s actual results to differ materially from those expressed in the forward-looking statements, are described in greater detail under the heading “Item 1A. Risk Factors” in ALLETE’s Form 10-K for the year ended December 31, 2023 and in subsequently filed Forms 10-Q and 8-K, and in any other SEC filings made by ALLETE. These risks should not be considered a complete statement of all potential risks and uncertainty, and will be discussed more fully, along with other risks associated with the proposed transaction, in the proxy statement to be filed with the SEC in connection with the proposed transaction. Management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels. Forward-looking statements speak only as of the date hereof, and ALLETE does not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by applicable law.