The Canada Pension Plan Investment Board (CPP IB), the investment management organization that invests the reserve fund assets of the Canada Pension Plan, has opened an office in Hong Kong to focus on investment opportunities in Asia.

CPP IB says this new office reflects the organization’s strategy to diversify the portfolio globally.

The Hong Kong office is the first international office for the CPP IB.

“We chose Hong Kong as our first overseas office because we believe the long-term growth opportunities in the region are compelling and are aligned with our organization’s long-term investment horizon,” says David Denison, president and CEO.

The CPP IB team in Hong Kong will source private equity and real estate investment opportunities with an initial focus in North Asia including the China, Hong Kong, Japan, South Korea and Taiwan markets.

In a separate announcement, the CPP IB also announced today it has made a US$200 million investment in FountainVest, a newly established private equity fund focused on investing in private enterprises in China. The CPP IB will act as lead co-sponsor along with the Ontario Teachers’ Pension Plan.

“This investment in China illustrates the importance of the new office and underscores the CPP Investment Board’s commitment to the region,” Denison says. “With this commitment, the CPP Investment Board now has over $1 billion committed to private equity and real estate investments in Asia.

A second international CPP IB office will be opened later this year in London, England.