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A senior executive at a large Canadian pension fund that has worked closely with private equity players agreed that the math of a leveraged buyout could work, and that they and other funds in the country would consider getting involved in any such deal should it arise.
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The funds took off after a 2006 federal law encouraged retirement plans to provide participants with investment options in which members would be automatically enrolled. Target-date funds automatically adjust their holdings and change their mix of stocks and bonds to reflect the need for their owners to reduce investment risks as they approach retirement.
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