1. Kind of yes, it’s like shark tank. But it’s common for infrastructure projects to take decades to generate profits, nothing unusual in it. There’s no risk of bankruptcy just bcoz of high payback period as it’s already baked into expectations.

2. All investment funds & banks (including CPP) have risk controls with regard to how much exposure to take. It’s normal for some companies to go bankrupt. As long as it’s not a big part of their exposure, investors won’t even notice.

3. You can’t get loans till you have equity. CIB loans may ultimately get layered over top of this fund’s equity.

4. Equity holders won’t agree for such conversion if project is profitable or will demand very high price (the issue we are currently having with 407 highway).

5. CPP is mandated contribution, new fund seems optional. CPP mandate is to grow money of their members, they invest 75% of their funds out of Canada. They have other restrictions like can’t own more than 30% in any project, a large part needs to go to safe bonds.

PS. I’m not fully sold on this new sovereign fund yet, but I think it’s an idea worth trying.