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. 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. We look forward to working with Court and TricorBrauns strong management team to drive the next phase of the Companys growth, both organically and through strategic acquisitions., TricorBraun is uniquely positioned to serve the requirements of the packaging industry, said Karen Frank, Senior Managing Director, Equities, at Ontario Teachers. Significant scale with 247.2 in net assets Funding ratio of 105.99 Investing for 336000 working and retired teachers Ontario Teachers' Pension Plan. Taylor said returns for 2022 may not hit last years levels in a more challenging economic environment of rising inflation, rates and market selloffs. 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. 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). 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 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. 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. Register now to read this article and more for free. He said he expects the private equity funds that OTPP does invest in to make returns and also offer the opportunity for co-investment. 2023 Ontario Teachers Pension Plan. 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). Thrilled to announce our latest investment partnership with GraceMed, a leader in Canada's cosmetic surgery and medical spa industries. All rights reserved. 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 . 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 fund outperformed . For more information, visit otpp.com and follow us on Twitter @OtppInfo. Click Teachers' can support direct private equity investments between $100 million and $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. Because of the consistency of returns, Frank has no plans to alter the portfolios ratio of direct and fund investing. 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. See all Private Equity salaries to learn how this stacks up in the market. Click below to get started. The Opportunity. The equities groups portfolio investments have typically averaged a one-year net IRR of about 20 percent. Dont miss our weekly curated news and insights, By signing up for our newsletter, you accept our terms and conditions as outlined under. Ares and Ontario Teachers will acquire a majority interest in the Company. By: Staff. To order copies of TricorBrauns leadership team will also retain a significant investment in the company, as will its current majority owner, AEA Investors. Learn more now. Other services include global sourcing, manufacturing oversight and global supply chain programs. Its only one data point, its only one year and were looking down the road. To order 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. Busy Bees is the largest childcare provider in the U.K.. We dont have a traditional fund and the fund doesnt have a term, she said. The information you requested is not available at this time, please check back again soon. 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 With the rise of remote working options, some employees have found themselves living double lives, working two (or more) full time jobs at once. Millan Mulraine sits down with our Multicultural ERG to discuss Black History Month, workplace progress and why he chose Ontario Teachers'. We have come out with very clear climate reduction targets, he said. 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). The organization was established in 1989 and is . Already a premium subscriber? Not the case? The store will not work correctly in the case when cookies are disabled. More . 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. Since our establishment as an independent organization in 1990, we have built an international reputation for innovation and leadership in investment . to colleagues, clients or customers, or inquire about 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.. 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. 1,300 Employees . 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. How to Geta Free Flight to Hong Kong in 500,000 Airline Ticket Giveaway, Apple Suppliers Are Racing to Exit China, AirPods Maker Says, Microsoft Expands Game Pass as Regulators Fret Over Activision Deal, Cash Is Paying More Than Traditional Stock-Bond Portfolio, S&P 500 Wraps Up Turbulent Month Near Lows of Day: Markets Wrap. Teachers' Private Capital considers both private equity and venture related investments in North America, Europe, and Asia. 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. We believe that TricorBrauns deep expertise, entrepreneurial approach, strong track record, and exceptional culture differentiate the company from its peers, said Brian Klos, Partner, Ares Private Equity Group. We dont just invest to make a return; we invest to make a mark. In 2021, Ontario Teachers did even better, earning a one-year net IRR of 29 percent. The company currently operates 664 centres across nine countries with 16,000 staff providing quality care for 63,000 children. Ontario Teachers' Pension Plan Board - OTPPB: An organization that oversees the pension plan for public school teachers in Ontario, Canada. That this is not better known, even ininformed market circles, is due to Ontario Teachers hesitation to talk about itself, Frank 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. 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. 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. 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. Private Equity salaries at Ontario Teachers' Pension Plan can range from $52,145-$58,170. "We love the U.K.," Mr. Taylor said, describing the market in the country as "probably the most predictable" market in Europe. Logoplaste is a leading global designer and manufacturer of value-added rigid plastic packaging solutions. Today, AEAs approximately 90 investment professionals operate globally with offices in New York, Connecticut, London, Munich and Shanghai. The company provides innovative solutions across a wide array of customer end markets in plastic and glass containers, closures, dispensers, tubes and flexibles. 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. Notable deals in Europe included acquiring a majority holding in plastic packaging producer Logoplaste and 30% of insurance broker Siaci Saint Honore. The content you are trying to view is exclusive to our subscribers. 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. "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. 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). Our private capital model is based on true partnership, We dont pound our chest. 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). To be sure, pension funds still see private equity firms as key to hitting their alternative investment allocations. Ontario Teachers' Pension Plan has acquired a majority stake in Nvision Eye Centers, an Aliso Viejo, California-based provider of comprehensive eye care services. 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. ophthalmology investments, including last years Veonet, owe to in-house domain expertise acquired over time. We look. 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. 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. 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. 09:01. Weve been cautious. 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. 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.. 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. He said he expects the private equity funds that OTPP does invest in to make returns and also offer the opportunity for co-investment. Hongquan is currently based in Canada. APHG is New Zealands largest human and veterinary pathology network. If we dont start thinking about those tools that may not, per se, transform an industry but may be key to long-term competitive advantages, we will eventually be left behind.. Please check your spam or junk folder just in case The Ontario Teachers total fund exceeded its benchmark of 8.8 per cent, according to a press release announcing its annual results. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. 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. 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.. it's been delivered there. TricorBrauns proven process will guide your packaging decisions from napkin sketch all the way to the retail shelf. The Alberta Investment Management Corp. is investing in a new real estate fund focused on developing rental housing across the Greater Toronto Area. 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. "We have come out with very clear climate reduction targets," he said. 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. 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. 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. In just three months, Jennifer Krahns life completely changed. The company also invests the plan's pension fund. 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. 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 pension is expected to step into the the roles filled by private equity firm Birch Hill over the past nine years . . This balance, she noted, will support Ontario Teachers objective to grow its assets to C$300 billion by 2030, from C$242 billion today. Read: Caisse highlights alternative investment portfolio as 2021 return hits 13.5%. environmental, social and governance (ESG). Lacking a funds natural inhibitions, she said, Ontario Teachers can be an agile dealmaker with global reach. 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. 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. 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. 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 Municipal Employees Retirement Systems assets grew by 4.2 per cent to $124.2 billion in 2022, according to its annual results. We take a disciplined approach to value creation to help good companies become great from day one. All rights reserved. Suite 3200 has ratified a four-year collective agreement that includes pension and benefits 1998- var CurrentYear = new Date().getFullYear() Sometimes the value creation playbook is going to take longer to execute, Frank said. 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. By the end of the year, however, its real estate, infrastructure and private equity investments boosted the fund to a net gain. We have one of the largest and most sophisticated pools of private equity capital in the world. Sign up and get the best of News delivered straight to your email inbox, free of charge. 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. When Frank arrived at Ontario Teachers two years ago from Barclays Private Bank, she thought this an enviable track record for any GP. 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. "I think it's always slightly egocentric," he said. Where other international investors may face capital constraints, the fund has a healthy balance sheet with about $8 billion ready to invest, he said. rights reserved. Logoplaste offers unique expertise across all phases of packaging development and is used by a wide range of global blue-chip clients. document.write(CurrentYear) Contex Group Inc. All rights reserved. $57B in assets under management 500+ company and fund investments since 1991 75+ global investment professionals Click here. About TricorBraunFounded in 1902, TricorBraun is North Americas largest distributor of primary packaging and one of the largest purchasers of packaging in the world. 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. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. 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 Pension Plan investments returned 11.1 per cent in 2021, with its result driven by the strong performance of its private equity portfolio. 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. 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 . Our award-winning Design & Engineering Center provides forward-thinking design, driven by consumer insight and creative solutions. By signing up for our newsletter, you accept our terms and conditions as outlined underpe-insights.com/privacy-policy. "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.". No financial . 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. presentation-ready copies of Toronto Star content for distribution TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH. 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. , Bloomberg. This agility was on display over the past few months. Along with our financial investment, we tap into our expertise and extensive global platform of experienced business leaders, managers and operating professionals to support our portfolio companies through the operational optimisation, regional expansion, acquisition acceleration, or business re-orientation that will unleash their potential. TricorBraun Jennifer Frighetto847-702-5304jfrighetto@tricorbraun.com, Ares Management Corporation Brunswick GroupAlex Yankus, 212-333-3810Ares@brunswickgroup.comOrAres Management CorporationCarl Drake, 800-340-6597cdrake@aresmgmt.com, Ontario Teachers Pension Plan BoardDan Madge416-730-6451media@otpp.com. 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. Fengate Private Equity, a division of Fengate Asset Management, recently announced a strategic minority equity investment in GraceMed, a recognized. "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. 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. Its private equity portfolio returned 29.9 per cent for the year, well above its 17.5 per cent benchmark. Ontario Teachers, for example, acquired a majority of Acorn Healthcare, a US autism treatment provider, while on the other side of the world, it was a minority investor in VerSe Innovation, Indias biggest local language tech platform. We value our strong partnership, and we are excited to continue our support of TricorBrauns growth strategies.. We deploy flexible capital in compelling private companies across a variety of strategies and time horizons. OTPP has put these topics high on the agenda when dealing directly with companies, according to Taylor. I dont want to be cocky or overstate it. JavaScript seems to be disabled in your browser. 2023 Ontario Teachers Pension Plan. Key stories on business-standard.com are available to premium subscribers only. Ontario Teachers' Pension Plan has acquired a majority stake in NVISION Eye Centers, an Aliso Viejo, California-based provider of comprehensive eye care services. 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.. 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. 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. 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. They might soon also be located in a new Ontario Teachers office in India. 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. Canadian Prime Minister Justin Trudeau is poised to win a third term in a snap election but fall short of regaining the parliamentary majority he was seeking. 685 Third Avenue Choose your news we will deliver. 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. 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