Deals

OTPP shops $1bn-plus portfolio – exclusive

The $256bn Canadian pension has sold stakes before, including a large private markets portfolio to Ardian in 2016.

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Ontario Teachers’ Pension Plan, one of Canada’s largest pensions, is seeking buyers for a private equity portfolio at least $1 billion.

The C$193.9 billion ($255.5 billion; €221.9 billion) pension is working with advisor Greenhill on the sale, according to two sources familiar with the matter. The portfolio contains a global mix of as many as 30 fund stakes, the sources said.

It is understood the process launched in early September.

Last year OTPP offloaded an interest worth at least $100 million in Black Diamond Capital Management‘s 2006-vintage BDCM Opportunity Fund II to HarbourVest Partners, while in 2016 it sold a large portfolio to Ardian in a process run by Evercore.

The pension has a 15.8 percent allocation to private equity, according to PEI data. It has committed to large funds, including those managed by Apollo Global Management, Providence Equity Partners, Silver Lake and Permira Advisers.

Pensions were the second-most active sellers of fund stakes in the first half of this year, accounting for 23 percent of sales, according to a report by intermediary Setter Capital. After secondaries funds and funds of funds, buyers expect pensions to be the most active sellers of stakes next year, the report noted.

OTPP did not return a request for comment. Greenhill declined to comment.