Quebec’s pension fund said it spent US$75 million in February to double its stake in Cirque du Soleil Entertainment, an investment it was forced to write off in June when the company filed for bankruptcy protection.

Caisse de Depot et Placement du Quebec’s decision to buy an additional 10 per cent of the live performance company from founder Guy Laliberte came after months of discussions with shareholders, Caisse Chief Executive Officer Charles Emond said Monday. The fund spent US$71 million for its initial 10 per cent stake in 2015, he told a panel of lawmakers in Quebec City. Neither amount had been previously disclosed.

“With the additional 10 per cent we suddenly had more rights about being consulted, having a weight, a greater influence” on debt levels and future shareholders, Emond said.

Montreal-based Caisse said this month it wrote off its entire US$170 million investment in Cirque, which includes some debt, after the coronavirus forced it to shut down all its shows around the globe. The company is recapitalizing under court protection, with a deadline for bids set for tomorrow. A committee of creditors has the leading bid so far.

The Caisse’s long-term goals for Cirque were for the company to be led by a strategic operator rather than a financial consortium, refocus on its core business and lower its debt, Emond said.

In late 2019, the pension fund was approached by “some foreign investors” interested in Cirque, while existing shareholders had indicated they wanted to sell all or part of their stakes, he said. When Cirque went into bankruptcy protection on June 30, private equity giant TPG Capital owned about 60 per cent and Shanghai-based Fosun International Ltd. held 20 per cent.

If not for the virus crisis, the investment “would be 100 per cent in our books,” Emond said.