Choose your news we will deliver. expressly prohibited without the prior written consent of Toronto All Ontario Teachers returns 11.1% for 2021, led by private equity investments. Our award-winning Design & Engineering Center provides forward-thinking design, driven by consumer insight and creative solutions. We hold a diverse global portfolio of assets, approximately 80% of which is managed in-house. By going direct, instead of via a fund managed by a buyout firm, Taylor said OTPP is also able to save on the significant fees that exist in an industry known for rewarding itself generously. articles a month for anyone to read, even non-subscribers! GlobalCapital, is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730, Covered bond spreads poised to tighten as supply cools, Ruschpler leaves ADB funding team for internal move, Belgium cuts stake in BNP Paribas but keeps seat on board, Santander hops into lively Kangaroo market after NAB tier two, Credit Suisse loses two more from credit sales. It currently has more than $30 billion in green investments. Learn more now. Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with CAD 242.5 billion in net assets as of June 30, 2022. The head of one of North Americas biggest investors in private markets wants to cut its reliance on buyout firms and do more dealmaking on his own. Teachers' Private Capital is the direct investment arm of the Ontario Teachers' Pension Plan. Across our portfolio we help businesses become more profitable and sustainable. Even among Ontario Teachers largest Canadian peers who together pioneered institutional direct investing this is an outsized share. Senior team members include Romeo Leemrijse and Bogdan Cenanovic, global group sector heads; Harj Shoan, global head of funds; Jean-Charles Douin, head of private capital EMEA; Raju Ruparelia, head of private capital APAC; and Maggie Fanari, head of high-conviction equities. Jo Taylor, chief executive officer of Ontario Teachers Pension Plan Board, has plans for the $242 billion (US$189 billion) fund to buy more controlling stakes in businesses directly, so that it can save on fees and keep a closer eye on environmental, social and governance matters. OTPP manages the retirement pots of teachers in Ontario. Please check your spam or junk folder just in case 09:01. We take a disciplined approach to value creation to help good companies become great from day one. "We love the U.K.," Mr. Taylor said, describing the market in the country as "probably the most predictable" market in Europe. It reflects, Frank said, Ontario Teachers pledge to achieve net- zero greenhouse gas emissions by 2050. But OMERS private equity holdings increased by 13.7 per cent, its infrastructure investments gained 12.5 per cent and its real estate assets were up by 13.6 per cent. Where the core of it, what we really focus on, is making sure we have deep sector knowledge, Frank said. Hutcheson said the funds real estate assets (which generate a stream of rental income and tend to steadily increase in value) are also a good hedge against inflation. We are focused on being the Best Place for the Best People in Packaging Our people are dedicated, experienced, empowered, and have an entrepreneurial spirit that results in the creation of packaging that makes a difference. We dont just invest to make a return; we invest to make a mark. This year started out so differently from what the world expected., Growing market uncertainty and volatility, however, is not fazing her. Ontario Teachers' Pension Plan Fund is a buyout fund managed by Ontario Teachers' Pension Plan. Looking ahead, OTPP is considering opening anoffice in Indiaas part of its expansion into fast-growing emerging markets and is also looking to set up a credit investment team in London. We have one of the largest and most sophisticated pools of private equity capital in the world. TricorBrauns proven process will guide your packaging decisions from napkin sketch all the way to the retail shelf. 130 E. Randolph St. In a rare interview, Taylor said OTPP is looking more closely at both the returns its private equity portfolio generates, and whether it can have sufficient influence at the companies it invests in. The Opportunity. The company also invests the plan's pension fund. About AEAAEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. This transaction is Blackstone's second investment as part of its core private equity strategy, which is specifically designed to hold private equity investments in exceptionally high-quality companies for longer periods of time than traditional private equity funds. Frank nonetheless believes Ontario Teachers is a differentiated investor possessing capabilities that make it stand out in a fiercely competitive PE industry. They might soon also be located in a new Ontario Teachers office in India. In fact, it can be argued Ontario Teachers is today less of an LP than it is a very big GP. Newspapers Limited, 8 Spadina Avenue, 10th Floor, Toronto, ON M5V 0S8, OMERS actually posted a loss of $500 million, Canadas big pension funds (though some critics say such assets can be more difficult to value, contributing to a $3 billion loss that year. The fund outperformed its benchmark by 2.3 percentage points, lifting assets under management to C$241.6 billion ($189.2 billion), the Toronto-based pension manager said Monday in a statement. The content you are trying to view is exclusive to our subscribers. Singapore's state-owned investor Temasek Holdings bought testing company Element Materials from buyout firm Bridgepoint Group for $7 billion earlier this year, while Brookfield Asset Management this week agreed to acquire emergency household repairs provider HomeServe for 4.1 billion ($5 billion). Equity investments generally range from $100 million to $1 billion and target well-managed companies in industries with positive secular tailwinds across North America, Western Europe, China, India and Australia. We are an active investor with fungible capital. This enables flexible investing across strategies everything from buyouts and growth equity to structured equity and PIPEs independently or with fund partners and other like-minded investors. The Ontario Teachers Pension Plan investments returned 11.1 per cent in 2021, with its result driven by the strong performance of its private equity portfolio. Gavin Graham's Top Picks: February 28, 2023, David Burrows' Top Picks: February 27, 2023, Eric Nuttall's Top Picks: February 24, 2023. The economy and markets are "under surveillance". Posted 5:35:34 PM. While historically happy to invest for small stakes with private equity firms, also known as GPs, these funds have built up internal buyout deal expertise. If you do not yet have a Torstar account, you can create one now (it is free), Copyright owned or licensed by Toronto Star Newspapers Limited. Diversifying away from stocks and bonds and investing significant capital in alternative assets has become a hallmark of Canadas big pension funds (though some critics say such assets can be more difficult to value and valuations are not conducted as often as investments that trade on public markets). Teachers' Pension Plan, known widely as a top private equity investor, is perhaps underestimated in its foremost role as a buyer and seller of companies. Ontario Teachers' Pension Plan said equity gains helped offset fixed income and currency losses in the first half of the year, giving the Toronto-based retirement fund manager a 3.8% return for . More . We look. If OTPP follows through on the pledge to bypass private equity funds on more deals, it will add another competitive force to the likes of Blackstone, KKR & Co. and Apollo Global Management in the hunt for takeover targets in private and potentially public markets. TORONTO, [Wednesday, September 22, 2021] /CNW/ - Ontario Teachers' Pension Plan Board ("Ontario Teachers'") announced today that it has entered into an agreement to acquire HomeQ Corporation ("HomeQ"), the parent company of HomeEquity Bank, from Birch Hill Equity Partners Management Inc. ("Birch Hill") and the other minority shareholders of HomeQ. This balance, she noted, will support Ontario Teachers objective to grow its assets to C$300 billion by 2030, from C$242 billion today. Get Ahead! Click The firm manages funds that have over $15 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies and mezzanine and senior debt investments. He said he expects the private equity funds that OTPP does invest in to make returns and also offer the opportunity for co-investment. Ontario Teachers long-term horizon is another differentiator that facilitates, among other things, value creation. Whether youre looking for a stock package or a groundbreaking custom design, TricorBrauns proven process will guide your packaging decisions from napkin sketch all the way to the retail shelf. Founded in 1989, the Ontario Teachers' Pension Plan is an independent organization responsible for administering defined-benefit pensions for school teachers of the Canadian province of Ontario. The information you requested is not available at this time, please check back again soon. Sometimes the value creation playbook is going to take longer to execute, Frank said. Dont miss our weekly curated news and insights, By signing up for our newsletter, you accept our terms and conditions as outlined under. The company provides innovative solutions across a wide array of customer end markets in plastic and glass containers, closures, dispensers, tubes and flexibles. Free Shipping on Plastic Online Orders $149+. Private equity firms have historically charged a 2% management fee and 20% on any performance above a certain threshold. Register now to read this article and more for free. Hongquan Gu works at Ontario Teachers' Pension Plan, which is a Venture Capital & Private Equity company with an estimated 812 employees. to colleagues, clients or customers, or inquire about A decided preference for direct investing is part of a PE tradition at Ontario Teachers started ages ago, Karen Frank, global head of equities, told Buyouts. Fengate Private Equity, a division of Fengate Asset Management, recently announced a strategic minority equity investment in GraceMed, a recognized. Several recent. At Ontario Teachers' we invest to deliver outstanding service and retirement security for our members while leaving a lasting, positive impact on the world. Not the case? This has driven fresh initiatives, among them a commitment to TPG Rise Climate Fund, closed this year at $7.3 billion. Serving customers since 1902, TricorBraun has grown to $1.5 billion in annual sales, with more than 1,100 team members in 50 locations throughout North America, Europe, and Asia. At the halfway point of 2022, OMERS actually posted a loss of $500 million amidst a rout of financial markets following the start of the war in Ukraine and central banks beginning to tackle runaway inflation with a string of interest-rate hikes. All rights reserved. "Hopefully there's enough return in our real assets and inflation hedge portfolio to compensate for potential losses elsewhere," said Chief Investment Officer Ziad Hindo. An independent organization, it invests the pension fund's assets and administers the pensions of 329,000 active and retired teachers in Ontario. INDUS Realty to be taken private in $868m deal, NextPower UK ESG Exceeds 500m Target Within Six Months, Brookfield consortium trims offer for Australias Origin Energy to $10.5bn. OTPP is looking to increase the active risk taking and scale of its credit platform across various strategies and geographies, according to its website. The equities group, led by Frank since 2020, oversaw C$70 billion of assets at the end of December, 80 percent of which were direct interests managed internally. The Ontario Teachers' Pension Plan is gearing up for a fresh C$70bn push into private markets, spanning assets from infrastructure to real estate, as one of the world's largest retirement. We use our agile team, deep sector expertise and global network to help our portfolio companies grow. The trend toward more direct and control deals by large pension and sovereign investors has picked up in recent years. Our globally diversified asset groups invest in over 50 countries around the world. As of September 30, 2020, Ares Management's global platform had approximately $179 billion of assets under management with more than 1,400 employees operating across North America, Europe and Asia Pacific. The Ontario Teachers total fund exceeded its benchmark of 8.8 per cent, according to a press release announcing its annual results. We can provide the right capital to meet the specific needs of the businesses we support, and those of our partners. For the best experience on our site, be sure to turn on Javascript in your browser. The head of one of North America's biggest investors in private markets wants to cut its reliance on buyout firms and do more dealmaking on his own. permissions/licensing, please go to: www.TorontoStarReprints.com. To be sure, pension funds still see private equity firms as key to hitting their alternative investment allocations. We try to be very sound, very reliable investors who think about what best-in-class looks like and who do a good job., Get the weeks top news delivered directly to your inbox Sign up for our newsletter. Pension funds have been upping pressure on asset managers to apply more ESG awareness when investing their money, keen to show theyre not just paying lip service to issues like climate change and social mobility. "We have come out with very clear climate reduction targets," he said. Don't have an account? We dont have a traditional fund and the fund doesnt have a term, she said. This agility was on display over the past few months. "If you don't deliver that, we don't do the next fund," said Mr. Taylor, a former executive at London-listed private equity firm 3i Group. 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