Delivering Growth Through Private Equity Investing
Every day, across a range of business sectors and in locations around the world, Ontario Teachers', home to one of the world's largest, most sophisticated pools of private capital, actively seeks opportunities for partnership and to invest in companies that are looking to grow.
Since launching Private Capital in 1991, Ontario Teachers' has invested in more than 500 companies and funds, deployed approximately $40 billion in capital on a global scale and developed expertise in specific industry sectors including:
- Industrials & Energy — looks for industrial companies with strong end-market fundamentals, with a particular focus on packaging, specialty chemicals, capital goods and building products; business services with a focus on subsectors such as TIC, route based services, facilities management and staffing; energy investments across the energy sector with a focus on exploration & production, onshore development and exploitation, midstream, service and equipment, and power and renewables
- Financial Services — often works with value-added partners in segments such as property and casualty insurance, asset and wealth management, specialty finance, payments and services businesses
- Consumer, Retail & Healthcare — focuses on platform investments in sectors with strong market fundamentals and often a consolidation or growth capital expenditure opportunity. In consumer, active sub sectors include packaged food, branded durables, apparel and footwear, and home and personal care; in retail, areas include specialty services, leisure, restaurants and multi-site healthcare (e.g. senior housing, dental and veterinary); other healthcare focus areas include specialty pharmaceutical, outsourced pharmaceutical and hospital services, and diagnostics.
- Technology, Media, & Telecommunications — focuses on subsectors, such as enterprise software solutions, communications infrastructure, technology enabled services, and other opportunistic technology, media and telecommunications situations
- Portfolio Management — works collaboratively with management teams and deal teams on value creation planning, value lever acceleration and talent management across the direct investment portfolio. The team also leads portfolio monitoring and sharing of best practices and networks across Private Capital.
- Global Funds — focuses on top-tier fund investments globally that deliver strong performance and access to partnering opportunities. Looks for PE firms that have differentiated sourcing and value creation strategies that align with our direct/co-underwriting approach.
How We Invest
Most of our private capital investments are made in two ways:
Direct and co-investor: Ontario Teachers' is a direct equity investor primarily in private companies. We are continually looking for attractive opportunities to partner with like-minded management teams and to work with them on driving value, for investee companies and our plan, during our investment period. Along with financial support, we provide advice and guidance to help grow the businesses we invest in. We look for well-managed companies with high-potential brands and compelling growth prospects. We also consider Long-Term Equities investments that deliver a stream of income and growth relative to inflation, with a hold period of at least ten years. Our approach is flexible – we can act as a lead equity investor, partner with compatible co-investors or even supply financing for the entire capital structure. Our goals are clear: we take a disciplined approach to value creation and we help good companies become great.
Funds: Ontario Teachers' has strategic investments with many of the world's leading private equity and venture capital firms, We value the opportunities to co-invest and work in other ways with our fund partners, including the pursuit of opportunities in markets we can't easily access directly. We are members of the Institutional Limited Partners Association (ILPA), and endorse the ILPA Private Equity Principles which we believe form the basis of an effective private equity partnership: Alignment of Interest, Governance and Transparency.
$26.6 billion of market exposure at December 31, 2016
4.3% return in 2016, four-year annualized return of 20.8%
Long-term investor with no fixed timetable for exits
Value creation focus