CPPIB’s ORPEA Debacle

CPPIB, the board that invests on behalf of more than 22 million contributors and beneficiaries of Canada’s public pension fund, was the dominant shareholder in Paris-based Orpea for a decade and lost over C$500 million dollars when it exited. CPPIB claims to be a responsible long-term investor and has a strong set of guiding principles with high ethical standards. But this debacle reveals serious shortcomings in the CPPIB’s governance and conduct, and invites questions about its broader investment approach. The collapse of Orpea was a seismic event in France, sending shockwaves through the long-term care sector across Europe. In Canada, however, it caused barely a tremor.

This report explains in detail the crisis that unfolded at Orpea and the failure of CPPIB to adequately oversee and intervene in one of its largest global investments