Ontario Teachers’ Pension Plan has recorded its first loss in private equity in more than a decade, prompting the CAD200bn pension fund manager to refocus its strategy within the asset class, according to a report by Bloomberg.
The value of the fund’s private equity portfolio fell by about CAD10 billion in 2025, marking its first negative result since 2009. In response, the pension plan said it will narrow its investment focus to three core areas: financial services, technology and services.
Despite the setback in private markets, the overall fund delivered a 6.7% return for the year, supported by gains in public equities, gold and holdings such as SpaceX.
Executives said the private equity losses were partly driven by valuation adjustments across several sectors, including software and healthcare, reflecting uncertainty around artificial intelligence and elevated deal activity during the post-pandemic investment boom.
At the end of the year, the pension plan’s private equity portfolio was valued at approximately CAD50.8bn. The organisation continues to combine direct investments with allocations to external fund managers, which account for around 28% of the portfolio.
Portfolio companies include businesses such as Abano Healthcare, Nvision Eye Centers and PhyMed Healthcare Group. The fund also acquired a majority stake in IT services firm Miratech in 2021.
Ontario Teachers’ net assets rose to CAD279.4bn at the end of 2025, with its venture growth portfolio delivering particularly strong performance for around +30% due largely to investments in companies including SpaceX and Databricks.
