No financial . 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. This estimate is based upon 2 Ontario Teachers' Pension Plan Private Equity salary report(s) provided by employees or estimated based upon statistical methods. How will the DOLs finalized rules impact ESG investing? OTPP has put these topics high on the agenda when dealing directly with companies, according to Taylor. We take a disciplined approach to value creation to help good companies become great from day one. 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.. Where the core of it, what we really focus on, is making sure we have deep sector knowledge, Frank said. "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.". "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. This balance, she noted, will support Ontario Teachers objective to grow its assets to C$300 billion by 2030, from C$242 billion today. The Opportunity. AEA Private Equity invests across three sectors: value added industrials, consumer and services. Taylor said returns for 2022 may not hit last years levels in a more challenging economic environment of rising inflation, rates and market selloffs. New York, NY 10017-4036, Chicago Office has ratified a four-year collective agreement that includes pension and benefits 1998- var CurrentYear = new Date().getFullYear() JavaScript seems to be disabled in your browser. 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. As one of the largest pension plans in the world, we invest strategically across key markets and sectors to deliver steady returns. We deploy flexible capital in compelling private companies across a variety of strategies and time horizons. 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. By: Staff. The trend toward more direct and control deals by large pension and sovereign investors has picked up in recent years. Across our portfolio we help businesses become more profitable and sustainable. "We live in a world where we collude and we compete with others and that's quite a hard thing to pull off," Mr. Taylor said. 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 still fell short of an internal benchmark targeting a gain of 7.2 per cent for the year, but it comes after other large pension managers, including the Caisse de dpt et placement du Qubec, reported losses in recent weeks. The pension fund (which has 559,000 active and retired members, including union and non-union workers at municipalities, school boards, transit systems, electrical systems and other employers) said its investments in bonds fell by 3.8 per cent last year and its public equity assets lost 11.9 per cent. 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. This copy is for your personal non-commercial use only. Star Newspapers Limited and/or its licensors. The company provides innovative solutions across a wide array of customer end markets in plastic and glass containers, closures, dispensers, tubes and flexibles. OTPP manages the retirement pots of teachers in Ontario. Thrilled to announce our latest investment partnership with GraceMed, a leader in Canada's cosmetic surgery and medical spa industries. 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. TricorBrauns proven process will guide your packaging decisions from napkin sketch all the way to the retail shelf. We have just sent you an email so you can verify your account. OTPP's top executives say returns for 2022 may struggle to hit last year's levels in a more challenging economic environment of rising inflation, rates and market sell-offs. To be sure, pension funds still see private equity firms as key to hitting their alternative investment allocations. 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. To be sure, pension funds still see private equity firms as key to hitting their alternative investment allocations. Founder Marg Randles and Group CEO Simon Irons share how Busy Bees' partnership with Ontario Teachers' helped their company grow from 230 nurseries in the UK to 910 across 10 countries, including Singapore, Australia and Canada. The Ontario Teachers' Pension Plan (OTTP) is the largest single-profession pension plan in Canada. For more information, please visit www.aresmgmt.com. 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. 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. TricorBraun is North Americas largest primary packaging distributor and one of the largest providers of packaging in the world. This has driven fresh initiatives, among them a commitment to TPG Rise Climate Fund, closed this year at $7.3 billion. 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. 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. 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. For more information, visit otpp.com and follow us on Twitter @OtppInfo. Singapores state-owned investor Temasek Holdings Pte bought testing company Element Materials from buyout firm Bridgepoint Group Plc for US$7 billion earlier this year, while Brookfield Asset Management Inc. this week agreed toacquireemergency household repairs provider HomeServe Plc for 4.1 billion (US$5 billion). It invests the pension fund's assets and administers the pensions of 284,000 active and retired teachers in . The fund targets the business products and services (B2B) sector. We live in a world where we collude and we compete with others and thats quite a hard thing to pull off, Taylor said. Through growth equity, structured equity, buyouts or co-investing with other top-tier partners, we focus on positions where we can play a larger role in building stronger companies. 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). 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. Notable deals in Europe included acquiring a majority holding in plastic packaging producerLogoplasteand 30 per cent of insurance brokerSiaci Saint Honore. Toronto Star articles, please go to: www.TorontoStarReprints.com, Conversations are opinions of our readers and are subject to the, Are Canadas largest pensions putting your retirement at risk? Millan Mulraine sits down with our Multicultural ERG to discuss Black History Month, workplace progress and why he chose Ontario Teachers'. Private equity presently accounts for about one-quarter of all assets. It currently has more than $30 billion in green investments. The equities groups portfolio investments have typically averaged a one-year net IRR of about 20 percent. Found email listings include: h***@otpp.com. Photographer: Cole Burston/Bloomberg , Bloomberg. The content you are trying to view is exclusive to our subscribers. The store will not work correctly in the case when cookies are disabled. Were thinking about not the next twenty-four months and preparing a company for yet another sale but about how we put it on a path to build long-term value.. 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. 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. "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. Subscribe to our Newsletter to increase your edge. 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. A few WSO users shared their knowledge of the group: From WSO user @optimus_prime". 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. The company also invests the plan's pension fund. We value our strong partnership, and we are excited to continue our support of TricorBrauns growth strategies.. A growing chorus of experts say they are, Caisse de dpt et placement du Qubec reports loss of 5.6 per cent in 2022, Ontario Teachers Pension Plan becomes second public pension to write off crypto bet, The Toronto Star and thestar.com, each property of Toronto Star We pay pensions and invest plan assets on behalf of 329,000 working and retired teachers. That this is not better known, even ininformed market circles, is due to Ontario Teachers hesitation to talk about itself, Frank said. 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. Even among Ontario Teachers largest Canadian peers who together pioneered institutional direct investing this is an outsized share. Bloomberg Surveillance, covering the latest news in finance, economics and investments. "I do wonder sometimes whether it's necessary.". This year started out so differently from what the world expected., Growing market uncertainty and volatility, however, is not fazing her. Thats quite hard to do when you have 5 per cent to 10 per cent in somebody elses private equity deal.. 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. Private Capital Private Capital We have one of the largest and most sophisticated pools of private equity capital in the world. The trend toward more direct and control deals by large pension and sovereign investors has picked up in recent years. 1 December 2020. Ontario Teachers long-term horizon is another differentiator that facilitates, among other things, value creation. Typical bonus, however, is only 30% of base and dependent on three factors with different weightings (firm performance, group performance and individual . Base is in 80-85k range. 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. . Not the case? 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. Frank nonetheless believes Ontario Teachers is a differentiated investor possessing capabilities that make it stand out in a fiercely competitive PE industry. 2023 Ontario Teachers Pension Plan. 1,300 Employees . 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 $124 billion in assets by the end of the year. TORONTO and SAO PAULO, May 10, 2021 /PRNewswire/ - Ontario Teachers' Pension Plan Board ("Ontario Teachers'") is pleased to announce that it has entered into a definitive agreement with TPG,. We dont pound our chest. Register now to read this article and more for free. Dont worry about the news anymore, through our newsletter youll receive weekly access to what is happening. 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. expressly prohibited without the prior written consent of Toronto In fact, it can be argued Ontario Teachers is today less of an LP than it is a very big GP. We are able to back firms without the pressure to fundraise or exit positions, allowing us to invest for the right time frame for our investments to grow and realize their strategic goals. 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. Alberta is predicting a $2.4-billion budget surplus for its petro-powered economy this year, with plans to take a big bite out of its debt and put up guardrails to prevent eye-popping deficits when oil booms go bust. Teachers Private Capital is the PE arm of Canada's Ontario Teachers' Pension Plan. Weve been cautious. Main Office 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. Ares and Ontario Teachers will acquire a majority interest in the Company. global insights and specialized expertise. 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. Read: OPTrust posts 15.3% net return, driven by private equity investments, We delivered strong results for our members despite the challenges brought about by a second year of a global pandemic, said Jo Taylor, president and chief executive office at the Ontario Teachers, in the release. In 2021, Ontario Teachers did even better, earning a one-year net IRR of 29 percent. Read: Caisse highlights alternative investment portfolio as 2021 return hits 13.5%. it's been delivered there. Busy Bees is the largest childcare provider in the U.K.. Our private capital model is based on true partnership,
See all Private Equity salaries to learn how this stacks up in the market. By signing up for our newsletter, you accept our terms and conditions as outlined underpe-insights.com/privacy-policy. Join 120,000 other PE professionals today. Private equity firms have historically charged a 2 per cent management fee and 20 per cent on any performance above a certain threshold. Hongquan Gu works at Ontario Teachers' Pension Plan, which is a Venture Capital & Private Equity company with an estimated 812 employees. articles a month for anyone to read, even non-subscribers! The pension is expected to step into the the roles filled by private equity firm Birch Hill over the past nine years . 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. About TricorBraunFounded in 1902, TricorBraun is North Americas largest distributor of primary packaging and one of the largest purchasers of packaging in the world. Lacking a funds natural inhibitions, she said, Ontario Teachers can be an agile dealmaker with global reach. Ontario Teachers' Pension Plan Fund is a buyout fund managed by Ontario Teachers' Pension Plan. The private capital team has long specialized in six sectors: consumer, diversified industrials and business services, financial services, healthcare, sustainability and energy transition, and tech, media and telecom. Net assets rose 10% in 2021, a year in which the fund stepped up efforts to buy controlling stakes. 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). 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Contex Group Inc.355, Sainte-Catherine West, suite 501Montral, QC H3B 1A5(514) 392-2009, Share this article and your comments with peers on social media, OPTrust posts 15.3% net return, driven by private equity investments, Caisse highlights alternative investment portfolio as 2021 return hits 13.5%, AIMCo investing in Toronto real estate fund, Caisse entering share repurchase in IT provider, OMERS returns 4.2% for 2022, led by alternative investments, Top 5 HR, benefits, pension and investment stories of the week, Coverage of the 2023 Chronic Disease at Work conference, Proactive, customized health and wellness strategies must consider pandemic impacts, What employers need to know about alopecia areata, Expert panel: Air Canada decision illustrates danger of relying on pension plan terms in wrongful dismissal actions, 68% of workers say focus on employee well-being, DEI drives trust in company: survey, Mosaic, Unifor agreement includes pension, paid leave gains. Why? The economy and markets are "under surveillance". Click below to get started. 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. "I think it's always slightly egocentric," he said. 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. Ontario Teachers recognizes the deal environment has changed significantly because of inflationary pressures, rate hikes, Russias invasion of Ukraine and other factors, Frank said. 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. Progress and why he chose Ontario Teachers is a differentiated investor possessing that... 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The economy and markets are `` under Surveillance '' see private equity presently accounts for about one-quarter of all.!