Why? Canada-based Ontario Teachers' Pension Plan, one of the world's biggest pension fund managers, says it is betting on infrastructure and private equity (PE) in this country. 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. We try to be quite disciplined and ask, What is interesting, where is the best place not just for this year but for five years or even ten years?, Ontario Teachers, for example, targets opportunities in a few high- growth healthcare sub-sectors, such ophthalmology. "We have come out with very clear climate reduction targets," he said. Ontario Municipal Employees Retirement System (OMERS) said Monday that it generated an investment return of 4.2 per cent in 2022, adding $4.9 billion in investment income to the plan, which had. Ontario Teachers long-term horizon is another differentiator that facilitates, among other things, value creation. The pension system was in the thick of last years vigorous PE dealmaking, investing or committing about $7.8bn globally, roughly 2x its outlay in 2020 and 2019. Sometimes the value creation playbook is going to take longer to execute, Frank said. More . In 2021, Ontario Teachers did even better, earning a one-year net IRR of 29 percent. Click below to get started. In 2021 it announced an additional $70bn. 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. The Ontario Teachers' Pension Plan Board ( French: Rgime de retraite des enseignantes et des enseignants de l'Ontario) [5] is an independent organization responsible for administering defined-benefit pensions for school teachers of the Canadian province of Ontario. Looking ahead, OTPP is considering opening an office in India as part of its expansion into fast-growing emerging markets and is also looking to set up a credit investment team in London. The store will not work correctly in the case when cookies are disabled. On the one hand, its funded ratio has decreased to 95 per cent, down from 97 per cent a year earlier, after it increased pension payments of its retired members by six per cent to reflect the higher cost of living. I think its always slightly egocentric, he said. document.write(CurrentYear) Contex Group Inc. All rights reserved. The fund didnt invest in cryptocurrency, which has been a headache for other Canadian pension funds (Ontario Teachers Pension Plan incurred a significant writeoff after the meltdown of crypto exchange FTX). Ares Management Corporation's Private Equity Group & Ontario Teachers' Pension Plan Board to acquire a majority interest in TricorBraun. Ontario Teachers recognizes the deal environment has changed significantly because of inflationary pressures, rate hikes, Russias invasion of Ukraine and other factors, Frank said. Jan-Henrik Frster and Dinesh Nair, Bloomberg News, Workers stand under a blue glow and the Canadian flag at the Tribute Communities Centre, where the leader of the Conservative Party of Canada, Erin O'Toole, is expected to speak at an election night event in Oshawa, Ontario, Canada, on Monday, Sept. 20, 2021. $57B in assets under management 500+ company and fund investments since 1991 75+ global investment professionals The trend toward more direct and control deals by large pension and sovereign investors has picked up in recent years. All rights reserved. TricorBraun To Be Acquired by Ares Management and Ontario Teachers' Pension Plan Board | TricorBraun The store will not work correctly in the case when cookies are disabled. But as central banks have raised interest rates, thats made it easier for the fund to save money, said OMERS chief financial officer Jonathan Simmons. See all Private Equity salaries to learn how this stacks up in the market. Republication or distribution of this content is 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 . If you dont deliver that, we dont do the next fund, said Taylor, a former executive at London-listed private equity firm 3i Group Plc. Investment firms have for years enjoyed a very favorable environment, with ultra-low interest rates spurring institutional money to chase higher returns in private markets as valuations boomed. That this is not better known, even ininformed market circles, is due to Ontario Teachers hesitation to talk about itself, Frank said. To be sure, pension funds still see private equity firms as key to hitting their alternative investment allocations. 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. Im pretty with happy with the strategic as well as the performance part of the size of the direct book vis--vis the size of the funds book and the size of public book.. Teachers' Venture Growth (TVG) is an investment department within Ontario Teachers' Pension Plan that is focused on late stage venture and growth equity investments in . Our award-winning Design & Engineering Center provides forward-thinking design, driven by consumer insight and creative solutions. OTPP has put these topics high on the agenda when dealing directly with companies, according to Taylor. The company serves consumer packaged goods companies, from cutting-edge start-ups to the worlds most iconic brands, and is a critical packaging provider for the essential personal care and household cleaning, food and beverage, and healthcare/nutraceutical industries. Ares and Ontario Teachers are the right partners to help us expand on our steady growth as we continue to build the best place for the best people in packaging, said Carruthers. Photographer: Cole Burston/Bloomberg , Bloomberg. (Podcast). This estimate is based upon 2 Ontario Teachers' Pension Plan Private Equity salary report(s) provided by employees or estimated based upon statistical methods. Inflation itself has been a mixed blessing for OMERS. Significant scale with 247.2 in net assets Funding ratio of 105.99 Investing for 336000 working and retired teachers The fund targets the business products and services (B2B) sector. 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. Its surprisingly mostly legal, and some will argue they have found the benefits far outweigh the risk. We come out with very clear diversity, equity and inclusion targets in terms of gender participation on boards and how generally governance works around the businesses that we invest in.. One of Ontarios largest pension fund managers said its investments in private assets, real estate and infrastructure helped save it from a wipeout last year as public stocks and bonds took big hits amid turbulent markets. Peloton has ties to Ontario Teachers': two of its founders, Mike Murray and Faraone, were managing directors at the pension fund before they struck out on their own to start the private equity . 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). To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Only logged in subscribers of this site will be able to access the shared article. Net assets rose 10% in 2021, a year in which the fund stepped up efforts to buy controlling stakes. This year started out so differently from what the world expected., Growing market uncertainty and volatility, however, is not fazing her. Already a premium subscriber? Thats quite hard to do when you have 5 per cent to 10 per cent in somebody elses private equity deal.. Pension funds assets under management rose to C$241.6 billion, Private equity assets rose 29%, while resources returned 28%. Typical bonus, however, is only 30% of base and dependent on three factors with different weightings (firm performance, group performance and individual . The Ontario Teachers also invested or committed an additional $5 billion last year into green or transition assets, as part of its pledge to achieve net zero on its investment activities by 2050. Private Equity salaries at Ontario Teachers' Pension Plan can range from $52,422-$57,673. About Ontario Teachers Pension Plan BoardOntario Teachers' is the administrator of Canada's largest single-profession pension plan, with C$204.7 billion in net assets (all figures at June 30, 2020 unless noted). Tenth Floor Thrilled to announce our latest investment partnership with GraceMed, a leader in Canada's cosmetic surgery and medical spa industries. We look. Contact Information Fund Manager Ontario Teachers' Pension Plan Fund Manager Website www.otpp.com Private equity presently accounts for about one-quarter of all assets. We value our strong partnership, and we are excited to continue our support of TricorBrauns growth strategies.. 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Star Newspapers Limited and/or its licensors. The pension plans allocations to natural resources and infrastructure also exceeded expectations, generating returns of 28.1 per cent and 7.9 per cent, respectively. 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. We believe that integratingenvironmental, social and governance (ESG) factors into our investment decisions and backing companies to act responsibly will create greater value for our members. 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. The transaction is expected to close in the first quarter of 2021 and is subject to customary closing conditions and regulatory approvals. Dont worry about the news anymore, through our newsletter youll receive weekly access to what is happening. Frank nonetheless believes Ontario Teachers is a differentiated investor possessing capabilities that make it stand out in a fiercely competitive PE industry. Strong ESG practices and active management have long been at the heart of what we do and will continue to support our commitment to achieve a net-zero investment portfolio by 2050. Bloomberg Surveillance with Tom Keene, Jonathan Ferro & Lisa Abramowicz live from New York, bringing insight on global markets and the top business stories of the day. Teachers' can support direct private equity investments between $100 million and $3 billion. rights reserved. March 29-30, 2023 Convene, 117 W 46th St, New York, April 19-20, 2023 Convene, 117 W 46th St, New York, May 17-18, 2023 Hilton Tower Bridge, London, May 23-24, 2023 Convene 117 West 46th Street, New York, Get limited access to our industry news, analysis and data, plus regular email updates. The long term nature of our mission enables us to invest for a spectrum of duration, including over the long term where others can't. At Ontario Teachers' we invest to deliver outstanding service and retirement security for our members while leaving a lasting, positive impact on the world. 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. Millan Mulraine sits down with our Multicultural ERG to discuss Black History Month, workplace progress and why he chose Ontario Teachers'. 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. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors (Participants) and/or join its portfolio company boards or act in other advisory roles. We had excellent investment performance, maintaining our fully funded status and delivered a high level of service for our members all while making meaningful progress on our new multi-year strategy.. Teachers rode big gains in private equity and infrastructure to post an 11.1-per-cent return for 2021, topping its benchmark comparison portfolio by more than two percentage points. Weve been cautious. The Ontario Teachers total fund exceeded its benchmark of 8.8 per cent, according to a press release announcing its annual results. Notable deals in Europe included acquiring a majority holding in plastic packaging producer Logoplaste and 30% of insurance broker Siaci Saint Honore. The Ontario Teachers' Pension Plan (OTTP) is the largest single-profession pension plan in Canada. Teachers' is an independent organization headquartered in Toronto. The defined-benefit plan, which is fully funded as of January 1, 2020, invests and administers the pensions of the province of Ontario's 329,000 active and retired teachers. We use our agile team, deep sector expertise and global network to help our portfolio companies grow. Net assets under management rose 10 per cent in 2021, a year in which the fund stepped up efforts to buy controlling stakes. presentation-ready copies of Toronto Star content for distribution We are thrilled to have the opportunity to partner with TricorBraun through its next chapter., We are proud of our work with Keith, Court, and the TricorBraun management team to help drive growth through a number of successful initiatives, creating significant long-term value, said Tom Pryma, Partner, AEA. 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 . Million and $ 3 billion better, earning a one-year net IRR of 29 percent nonetheless Ontario!, Frank said 2021 and is subject to customary closing conditions and regulatory approvals workplace progress and why he Ontario. 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