The Ontario Teachers’ Pension Plan is realigning its private equity strategy by prioritising partnerships over direct control of portfolio companies.

The shift reflects a response to current global economic conditions, including high interest rates and geopolitical uncertainty, as the fund looks to mitigate operational risks and enhance flexibility.

Managing C$266.3bn (approximately $185.2bn), Ontario Teachers has traditionally operated under the Canadian Model of asset management, favouring in-house teams and independent governance. However, CEO Jo Taylor has indicated that today’s complex market environment has prompted a reevaluation of this approach, particularly across its C$60.4bn private equity portfolio.

While the fund is scaling back on acquiring new platform companies, it continues to grow existing investments through targeted bolt-on acquisitions. For example, BroadStreet Partners, an insurance brokerage within the portfolio, is expanding through a series of add-on deals. This strategy mirrors a broader trend among Canada’s largest pension funds, often referred to as the Maple Eight, who collectively manage over C$2.3tn and are increasingly turning to external managers for private equity exposure.

As part of its internal restructuring, Ontario Teachers has appointed Dale Burgess as interim executive managing director for equities. He will oversee private equity, infrastructure, and natural resources. In parallel, the fund is transitioning its public equities arm toward a more passive investment approach, citing the resource intensity of active management in today’s data-driven environment.

Ontario Teachers’ pivot signals how large institutional investors are adapting their private equity models to balance performance, risk, and scale in a rapidly changing global landscape.