The Ontario Teachers’ Pension Plan (OTPP) is refocusing part of its private investment team on direct operational value creation, signalling a return to “old-school” private equity, according to a report by Bloomberg citing Gillian Brown, the fund’s Chief Investment Officer for public and private investments.
Speaking at the Bloomberg Canadian Finance Conference in New York, Brown said the pension plan aims to generate returns by improving operating performance at the company level, rather than relying solely on financial engineering. “For us, that means refocusing on the operating-company-level results,” she said.
OTPP established a dedicated Portfolio Solutions team last year to lead this initiative, headed by Kevin Kerr, formerly head of the fund’s infrastructure team in the Americas. The unit brings together investment professionals from multiple asset classes to collaborate on deal sourcing, diligence, value creation, and eventual exits, ensuring operational improvements are embedded throughout the investment lifecycle.
The fund is balancing this approach with partnerships and minority investments to manage risk amid a prolonged deal drought and the complexities of running operating companies.
