Major transaction positions pension fund in the energy transition
The Canada Pension Plan Investment Board (CPP Investments) has entered into a definitive agreement to acquire an approximate 13% indirect equity interest in Sempra Infrastructure Partners (Sempra Infrastructure), buying the stake from Sempra for about US$3 billion.
The deal will be executed alongside affiliates of KKR, which is already an investor in Sempra Infrastructure. Under the broader transaction framework, the consortium is acquiring a 45% stake in the infrastructure unit, valuing the platform at an implied equity value of US$22.2 billion and enterprise value of US$31.7 billion.
Following closing, the consortium led by KKR and CPP Investments will hold 65%, Sempra will retain 25%, and the Abu Dhabi Investment Authority (ADIA) will maintain 10%.
Max Biagosch, senior managing director and global head of real assets at CPP Investments, said the investment aligns with the evolving energy transition.
“Natural gas has an important role to play in the global energy transition, and LNG infrastructure is central to meeting rising global demand and supporting long-term transition goals,” he said. “By strategically partnering with leading institutions such as KKR and Sempra, we are well-positioned to advance long-term value creation in a high-quality energy infrastructure platform.”
He added that Sempra Infrastructure plays an “essential role in delivering reliable, affordable, and increasingly sustainable energy solutions across North America and beyond.”
Sempra, for its part, said the transaction supports its strategy of simplifying its business and strengthening its financial position. The company has described the move as part of a “capital recycling” initiative that will help fund its 2025–2029 capital plan without requiring equity issuances.
As part of the broader developments, Sempra has also approved a US$14 billion expansion of its Port Arthur LNG project in Texas, Reuters reported. Additionally, Sempra Infrastructure recently struck a 20-year supply agreement to export 1.5 million tonnes of LNG per year to Japan’s JERA, sourced from its Port Arthur Phase 2 facility.
The closing of the CPP-KKR acquisition is anticipated in the second to third quarter of 2026, pending regulatory approvals and customary closing conditions.
On the CPP Fund’s side, in 2025 the fund surpassed $700 billion in assets and delivered a net return of 9.3%, yielding one of the highest net income totals in its history ($59.8 billion) for the fiscal year.
Meanwhile, for the quarter ending June 30, 2025, CPP Investments reported net assets of $731.7 billion, up from $714.4 billion in the prior quarter. The fund generated a 10-year annualized net return of 8.4%.
