All rights reserved. Since January 2020, President and Chief Executive Officer, Ontario Teachers' Pension Plan. ophthalmology investments, including last years Veonet, owe to in-house domain expertise acquired over time. "I think it's always slightly egocentric," he said. A link has been emailed to you - check your inbox. {{data.symbol | reutersRICLabelFormat:group.RICS}}, {{ stock | formatPrefix }}{{ stock.netChng | formatNetChange }}, CPPIB sees tough climate for private deals with sellers wary. Its private equity portfolio returned 29.9 per cent for the year, well above its 17.5 per cent benchmark. Why? To be sure, pension funds still see private equity firms as key to hitting their alternative investment allocations. By: Staff. By the end of the year, however, its real estate, infrastructure and private equity investments boosted the fund to a net gain. 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 Dont worry about the news anymore, through our newsletter youll receive weekly access to what is happening. 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. This estimate is based upon 2 Ontario Teachers' Pension Plan Private Equity salary report(s) provided by employees or estimated based upon statistical methods. We have just sent you an email so you can verify your account. 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. TricorBraun is North Americas largest primary packaging distributor and one of the largest providers of packaging in the world. 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.. 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). 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. Base is in 80-85k range. 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. Frank leads an equities group team of more than 140 investment professionals, operating from offices in Toronto, London, Hong Kong and Singapore. Only logged in subscribers of this site will be able to access the shared article. This balance, she noted, will support Ontario Teachers objective to grow its assets to C$300 billion by 2030, from C$242 billion today. 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. 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. March 14, 2022. Frank nonetheless believes Ontario Teachers is a differentiated investor possessing capabilities that make it stand out in a fiercely competitive PE industry. Our globally diversified asset groups invest in over 50 countries around the world. 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. Get Ahead! 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 . Ontario Teachers recognizes the deal environment has changed significantly because of inflationary pressures, rate hikes, Russias invasion of Ukraine and other factors, Frank said. TricorBrauns proven process will guide your packaging decisions from napkin sketch all the way to the retail shelf. "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. With the rise of remote working options, some employees have found themselves living double lives, working two (or more) full time jobs at once. 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. But I am proud of our team and I am confident (in) our strategy.. The information you requested is not available at this time, please check back again soon. The economy and markets are "under surveillance". Star Newspapers Limited and/or its licensors. That this is not better known, even ininformed market circles, is due to Ontario Teachers hesitation to talk about itself, Frank said. TricorBrauns leadership team will also retain a significant investment in the company, as will its current majority owner, AEA Investors. This copy is for your personal non-commercial use only. 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. 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 Inc., KKR & Co. and Apollo Global Management Inc. in the hunt for takeover targets in private and potentially public markets. Because of the consistency of returns, Frank has no plans to alter the portfolios ratio of direct and fund investing. Sometimes the value creation playbook is going to take longer to execute, Frank said. Copyright 2022-TricorBraun - All rights reserved. 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. Logoplaste is a leading global designer and manufacturer of value-added rigid plastic packaging solutions. Pension funds have been upping pressure on asset managers to apply more ESG awareness when investing their money, keen to show they're not just paying lip service to issues like climate change and social mobility. "That's quite hard to do when you have 5% to 10% in somebody else's private equity deal.". 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. rights reserved. No financial . I think its always slightly egocentric, he said. Please check your spam or junk folder just in case 685 Third Avenue It provides pathology services to 75 percent of New Zealands population with over 2,000 staff operating across its network of 25 laboratories and 150 collection centres. 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. The Need for Speed in Trend-Following Strategies, Global Fixed Income: Volatility and Uncertainty Here to Stay, Morningstar Indexes' Annual ESG Risk/Return Analysis, 2023 Outlook: The Top Five Trends to Monitor in the Year Ahead, Show Me the Income: Discovering plan sponsor and participant preferences for cr, The Future of Infrastructure: Building a Better Tomorrow, For institutional investors, ETFs can make meeting liquidity needs easier, Gold: the most effective commodity investment, 2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios, Ten ways retirement plan professionals add value to plan sponsors. expressly prohibited without the prior written consent of Toronto How will the DOLs finalized rules impact ESG investing? Gavin Graham's Top Picks: February 28, 2023, David Burrows' Top Picks: February 27, 2023, Eric Nuttall's Top Picks: February 24, 2023. Sign up and get the best of News delivered straight to your email inbox, free of charge. 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. And Hutcheson said the higher cost to borrow money also gives OMERS an edge when it comes to competition to purchase new private assets. 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. Thrilled to announce our latest investment partnership with GraceMed, a leader in Canada's cosmetic surgery and medical spa industries. We deploy flexible capital in compelling private companies across a variety of strategies and time horizons. 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. The pension system was in the thick of last year's vigorous PE dealmaking, investing or committing about $7.8bn globally, roughly 2x its outlay in 2020 and 2019. Private equity firms have historically charged a 2% management fee and 20% on any performance above a certain threshold. This has driven fresh initiatives, among them a commitment to TPG Rise Climate Fund, closed this year at $7.3 billion. 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. 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. Its an extraordinarily difficult year for any investor So, on balance, we are pleased with the outcome, OMERS CEO Blake Hutcheson told the Star. 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. "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. Click here. 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. Notable deals in Europe included acquiring a majority holding in plastic packaging producer Logoplaste and 30% of insurance broker Siaci Saint Honore. We take a disciplined approach to value creation to help good companies become great from day one. 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 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. 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. 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). The pension system was in the thick of last year's vigorous PE dealmaking, investing or committing about C$10 billion ($7.8 billion) globally, roughly 2x its outlay in 2020 and 2019. 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. The equities groups portfolio investments have typically averaged a one-year net IRR of about 20 percent. 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. We have one of the largest and most sophisticated pools of private equity capital in the world. For the best experience on our site, be sure to turn on Javascript in your browser. 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. Ontario Teachers acquires majority of Nvision Eye Centers, Investor Relations, Marketing & Communications Forum. It allows us to say, We really like this business or we really like the dynamic in this sector., I tell my team, If you really like the opportunity, find the trade, find the capital or design the kind of capital that goes into that company.. In large industries like consumer and healthcare, the goal is to dig into and explore niche opportunities. The British Columbia governments new budget will spend more as the economy shrinks. Subscribe to our Newsletter to increase your edge. Taylor said returns for 2022 may not hit last years levels in a more challenging economic environment of rising inflation, rates and market selloffs. 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. 09:01. 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. 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. He said he expects the private equity funds that OTPP does invest in to make returns and also offer the opportunity for co-investment. An independent organization, it invests the pension fund's assets and administers the pensions of 329,000 active and retired teachers in Ontario. Private equity firms have historically charged a 2 per cent management fee and 20 per cent on any performance above a certain threshold. This agility was on display over the past few months. Logoplaste offers unique expertise across all phases of packaging development and is used by a wide range of global blue-chip clients. The Ontario Teachers total fund exceeded its benchmark of 8.8 per cent, according to a press release announcing its annual results. We use our agile team, deep sector expertise and global network to help our portfolio companies grow. We have had a tremendously successful partnership with AEA, culminating with record sales in 2020, and we look forward to working with Ares and Ontario Teachers to deliver even greater value to our customers and suppliers over the coming years.. 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. 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. See all Private Equity salaries to learn how this stacks up in the market. Im super passionate about innovation, Frank said, investing in companies that undertake digitization or using digital capabilities to invest across a range of businesses., A priority, she added, will be digital disruption of traditional sectors in which Ontario Teachers is active, such as insurance. This estimate is based upon 2 Ontario Teachers' Pension Plan Private Equity salary report(s) provided by employees or estimated based upon statistical methods. Photographer: Cole Burston/Bloomberg 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. 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). The deployment was a mix of direct and fund investing, however, the lions share was absorbed by about 20 direct deals, three-quarters of them led or co-led by Ontario Teachers. Free Shipping on Plastic Online Orders $149+. The trend toward more direct and control deals by large pension and sovereign investors has picked up in recent years. A specialization in sustainability and energy transition is a rebrand of the former energy and power. . I think being agile and challenging ourselves is the way we get through this, she 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. Read More 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. All rights reserved. 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. 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. 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. 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. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 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. 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. , among them a commitment to TPG Rise Climate fund, closed this year at $ 7.3.... 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