Delivering stable, inflation-linked returns over the long-term
We principally make sole or joint control investments directly into private Infrastructure and Natural Resource companies to deliver growing, inflation-linked cash flows over the long-term.
Our Infrastructure mandate focuses on high quality assets that provide critical services to society with defensive investment characteristics including high barriers to entry and low return volatility. The Natural Resources mandate targets direct exposure to commodities in the oil and gas, mining, agriculture, forestry, and other resource-based sectors to provide cash flow, inflation protection and diversification.
Ontario Teachers' infrastructure investments focus on majority or co-controlling stakes where we adopt an active governance approach to create sustainable long-term value in our portfolio companies and enrich the communities they serve.
Our infrastructure portfolio of nearly $18.7 billion1 is diversified by geography, development stage and industry with assets broadly segmented into:
- volume-driven businesses with returns linked to throughput and macroeconomic conditions;
- regulated companies with revenues directly related to regulatory regimes;
- contracted assets with a significant portion of revenues tied to long-term contracts.
The portfolio is also diversified across the water/waste water, gas distribution, renewable and conventional energy and transport/logistics industry sectors. More specifically, we manage investments in airports, container terminals, power generation, transmission and distribution facilities, water and waste water utilities, a desalination facility, natural gas distribution systems, high-speed rail and renewable power generation assets.
We organize our investment team into regional groups responsible for both transaction execution and asset management activities in:
In addition, we have also created a specialized team focused on executing transactions and managing existing investments in the greenfield and renewable energy sectors.
All of our investment teams are supported by Value Creation and Analytics, a functional team who assist with portfolio construction, provide thought leadership and value creation best practices across the investment spectrum.
We also benefit from the expertise of two portfolio companies with specialist teams: AndesCan, which is focused on South America; and Ontario Airports Investments Limited (OAIL), which is focused on global airport investments.
Ontario Teachers' seeks exposure to commodities by investing in private, real assets such as investments in agriculture, oil and gas, timberland and mining. Our private investment program largely focuses on direct equity investments in natural resources businesses around the world. We target upstream assets which are at or near production with positive cash flow generation to gain direct exposure to underlying commodity prices. These investments provide the Fund with cash flow, inflation protection and diversification.
The Natural Resources' team is organized by industry to provide transaction execution and asset management in various sectors related to natural resources including:
The portfolio includes investments in Canada, the U.S., Australia and New Zealand; we also consider investment opportunities in other countries with attractive risk-adjusted returns.