CANADA/EUROPE - Teachers' Private Capital, the investment arm of the C$106bn Ontario Teachers' Pension Plan (OTPP), has opened its first office outside Canada in London to focus on direct European investment.
For over 15 years, the fund has been directly investing in private equity and funds. It currently holds around £2bn in committed capital either as major shareholder or as co-sponsor.
Director of the new London office, Andrew Claerhout, told Global Pensions: “We have built up a local team here in the UK as it is better to have a more proximate base to Europe.”
He added: “In Europe, history has been kind to us and we have reason to believe the future should be bright.”
OTPP announced investment targets would include infrastructure and real estate.
Teachers’ Private Capital achieved a return rate of 33.3% in the four years to2006 year end, 11.9% over its benchmark.
Canadian pension funds have recently hit the news with increased interest in direct investment.
Claerhout explained while the market for independent private equity firms grew in the US and Europe, the regulations in Canada permitted banks their own investment in that sector, so private equity firms never took such great a hold.
Private Equity International ranked Teachers’ Private Capital 20th in the world in total capital deployed over the past five years (February 2002 – April 2007) in its PEI 50 ranking of the world’s largest private equity firms.
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