Ontario Teachers' Pension Plan sees opportunities in private markets like infrastructure and credit
Ontario Teachers’ Pension Plan (OTPP) is increasing its focus on European markets as other investors concentrate on the US, according to its Chief Executive Officer Jo Taylor.
Speaking with Bloomberg Television during the World Economic Forum in Davos, Taylor said, “A lot of the Americans at the moment are actually saying, ‘I only want to be in the US.’ To me, that’s great news — I’ll just fill my boots in Europe.”
The Toronto-based pension fund, valued at $255.8bn, is seeking new ways to protect its capital after significant investments in the US.
Taylor highlighted opportunities in ‘active private markets,’ including infrastructure, private equity, and credit. He remarked, “I’m a great believer in going to hunt where the others don’t want to tread.”
In November, OTPP was reportedly considering selling its stakes in five European airports. These include London City, Birmingham, Bristol, Copenhagen, and Brussels.
The Times estimated the assets to be worth more than £10bn.
OTPP's ownership stakes range from 25 percent to 70 percent, making its share potentially worth over £3.5bn.
The prospective sale has prompted minority shareholders to assess their positions, with some considering divestment.
OTPP has also begun discussions with other potential buyers, including Australian infrastructure investor Macquarie, which has reportedly made a firm offer for all five airports.
As of the end of 2023, OTPP held 17 percent of its investments in Europe, including the UK, compared to 35 percent in both Canada and the US.
