The Company has made significant investments in top talent and operations, and will seek to capitalize on those to drive long-term growth in the years ahead. They might soon also be located in a new Ontario Teachers office in India. The trend toward more direct and control deals by large pension and sovereign investors has picked up in recent years. 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 . The fund outperformed . All rights reserved. In a rare interview, Mr. 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. We take a disciplined approach to value creation to help good companies become great from day one. The equities groups portfolio investments have typically averaged a one-year net IRR of about 20 percent. I think being agile and challenging ourselves is the way we get through this, she said. 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. We look. OTPP has put these topics high on the agenda when dealing directly with companies, according to Mr. Taylor. One of the advantages of being in a control position is that you can actually have a consistent view of how we interact with the businesses, he said. 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. The head of one of North America's biggest investors in private markets wants to cut its reliance on buyout firms and do more deal-making on his own. They included the acquisition of software provider Mitratech for $1.5 billion and the acquisition alongside PAI Partners of eye-care clinic network Veonet, reportedly for $2.3 billion. Ontario Teachers' Pension Plan returned 11% last year, helped by big gains in private equity and natural resources investments that mitigated losses in its bond portfolio. Ontario Teachers' Pension Plan, a Canadian fund that manages C$242.5 billion ($181 billion) of assets, has paused direct investing in private assets in China, according to people familiar. 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. 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. The company provides innovative solutions across a wide array of customer end markets in plastic and glass containers, closures, dispensers, tubes and flexibles. 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. The British Columbia governments new budget will spend more as the economy shrinks. Ontario Teachers long-term horizon is another differentiator that facilitates, among other things, value creation. 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. "One of the advantages of being in a control position is that you can actually have a consistent view of how we interact with the businesses," he said. To order copies of The content you are trying to view is exclusive to our subscribers. Weve been cautious. Found email listings include: h***@otpp.com. The store will not work correctly in the case when cookies are disabled. 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 . Royal Bank of Canada reported a first-quarter profit of $3.21 billion, down from $4.10 billion a year earlier as its provisions for credit losses increased. Tenth Floor Key stories on business-standard.com are available to premium subscribers only. 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. 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. Subscribe to our Newsletter to increase your edge. 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. This was helped along by exits, including the sale alongside Wind Point Partners of polyvinyl chloride maker Aurora Plastics and the sale alongside Stella Point Capital of payment tech provider First American Payment Systems. Our globally diversified asset groups invest in over 50 countries around the world. Lacking a funds natural inhibitions, she said, Ontario Teachers can be an agile dealmaker with global reach. Only logged in subscribers of this site will be able to access the shared article. Since January 2020, President and Chief Executive Officer, Ontario Teachers' Pension Plan. Net assets under management rose 10 per cent in 2021, a year in which the fund stepped up efforts to buy controlling stakes. TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH. It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.5% since the plan's founding in 1990. Jo Taylor, chief executive officer of Ontario Teachers' Pension Plan, Toronto, has plans for the C$242 billion ($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. Not the case? An independent organization, it invests the pension fund's assets and administers the pensions of 329,000 active and retired teachers in Ontario. 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). it's been delivered there. We hold a diverse global portfolio of assets, approximately 80% of which is managed in-house. permissions/licensing, please go to: www.TorontoStarReprints.com. {{data.symbol | reutersRICLabelFormat:group.RICS}}, {{ stock | formatPrefix }}{{ stock.netChng | formatNetChange }}, CPPIB sees tough climate for private deals with sellers wary. You should only be asked to sign in once. We use our agile team, deep sector expertise and global network to help our portfolio companies grow. ST. LOUIS, January 7, 2021 Global packaging leader TricorBraun (the Company) announced today that it has entered into a definitive stock purchase agreement with funds managed by Ares Management Corporations (NYSE: ARES) Private Equity Group (Ares) and Ontario Teachers Pension Plan Board (Ontario Teachers). document.write(CurrentYear) Contex Group Inc. All rights reserved. Ontario Teachers recognizes the deal environment has changed significantly because of inflationary pressures, rate hikes, Russias invasion of Ukraine and other factors, Frank said. 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. 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 organization was established in 1989 and is . No financial . The economy and markets are "under surveillance". 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 . About Ares Management Corporation Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. And Hutcheson said the higher cost to borrow money also gives OMERS an edge when it comes to competition to purchase new private assets. 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. Its only one data point, its only one year and were looking down the road. We invest in everything from regenerative farming to real estate to renewable energy and everything in between. 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.. By going direct, instead of via a fund managed by a buyout firm, Mr. Taylor said OTPP is also able to save on the "significant" fees that exist in an industry known for rewarding itself generously. For more information, visit otpp.com and follow us on Twitter @OtppInfo. In large industries like consumer and healthcare, the goal is to dig into and explore niche opportunities. Learn more now. He said he expects the private equity funds that OTPP does invest in to make returns and also offer the opportunity for co-investment. 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. to colleagues, clients or customers, or inquire about We can provide the right capital to meet the specific needs of the businesses we support, and those of our partners. See all Private Equity salaries to learn how this stacks up in the market. To order 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. 1,300 Employees . Click here. 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. Another space of increasing interestis tech adoption. Ares Management Corporation's Private Equity Group & Ontario Teachers' Pension Plan Board to acquire a majority interest in TricorBraun. All This balance, she noted, will support Ontario Teachers objective to grow its assets to C$300 billion by 2030, from C$242 billion today. Don't have an account? Read: Caisse highlights alternative investment portfolio as 2021 return hits 13.5%. Why? The Ontario Teachers' Pension Plan (OTTP) is the largest single-profession pension plan in Canada. Ontario Teachers returns 11.1% for 2021, led by private equity investments. We provide the capital and support to help high-performing management teams and boards grow and become leading global franchises. 1 December 2020. Teachers' Private Capital considers both private equity and venture related investments in North America, Europe, and Asia. In 2021 it announced an additional $70bn. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. TricorBrauns management team, including Executive Chairman Keith Strope and President and CEO Court Carruthers, will continue to lead the Company following the close of the transaction. Private equity presently accounts for about one-quarter of all assets. Private Equity salaries at Ontario Teachers' Pension Plan can range from $52,422-$57,673. And while OMERS missed out on a boom in tech stocks in 2020 (contributing to a $3 billion loss that year), Hutcheson said Monday, We try not to get distracted by short-term fads or shiny objects., Anyone can read Conversations, but to contribute, you should be a registered Torstar account holder. Posted 5:35:34 PM. 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. Sometimes the value creation playbook is going to take longer to execute, Frank said. At Ontario Teachers we invest to deliver outstanding service and retirement security for our members while leaving a lasting, positive impact on the world. 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. Join 120,000 other PE professionals today. Our private capital model is based on true partnership, I do wonder sometimes whether its necessary.. The fund targets the business products and services (B2B) sector. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. Where the core of it, what we really focus on, is making sure we have deep sector knowledge, Frank said. New and bigger buyout funds have come to market quicker than ever, with the cycle shortening from a typical three-year period to 18 months in some cases, according to Mr. Taylor. Private equity firms have historically charged a 2 per cent management fee and 20 per cent on any performance above a certain threshold. articles a month for anyone to read, even non-subscribers! JavaScript seems to be disabled in your browser. We dont pound our chest. Inflation itself has been a mixed blessing for OMERS. For the best experience on our site, be sure to turn on Javascript in your browser. TricorBrauns leadership team will also retain a significant investment in the company, as will its current majority owner, AEA 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. The information you requested is not available at this time, please check back again soon. Chicago, IL 60601, New Jersey governor proposes $7.1 billion pension contribution, Government watchdog highlights PBGC shortcomings in multiemployer aid program, Ventura County Employees adds $25 million to Cross Ocean fund commitment, Sponsored Content: Private Debt: Entering a New Era, The Institutional Investors Guide to ESG Investing, Climate Change: The Inescapable Opportunity, 2022 Defined Contribution East Conference, Ontario Teachers chalks up 11.1% return in 2021, Ontario Teachers, Corio partner on offshore wind projects, Ontario Teachers' Pension Plan weighs new India office in global push. Please check your spam or junk folder just in case In fact, it can be argued Ontario Teachers is today less of an LP than it is a very big GP. Private equity firms have historically charged a 2% management fee and 20% on any performance above a certain threshold. The Ontario Teachers' Pension Plan Board is acquiring the parent company of HomeEquity Bank, best known for its reverse-mortgage business, from Birch Hill Equity Partners Management Inc. and other minority shareholders. Dont miss our weekly curated news and insights, By signing up for our newsletter, you accept our terms and conditions as outlined under. 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. Across our portfolio we help businesses become more profitable and sustainable. 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. We use our agile team, deep sector expertise and global network to help our portfolio we businesses. 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