Latest news with #OntarioTeachers'
Yahoo
14-04-2025
- Business
- Yahoo
Ethos Capital-led consortium to take ownership position in BroadStreet
A consortium of investors led by Ethos Capital, British Columbia Investment Management and White Mountains has agreed to acquire an ownership position in insurance brokerage BroadStreet Partners. The financial terms of the agreement remain undisclosed. Ontario Teachers' Pension Plan acquired a majority stake in BroadStreet in 2012 and will retain a co-control stake, continuing its partnership with the new investor group. BroadStreet Partners specialises in commercial and personal property & casualty and employee benefits and is known for its collaborative model with Core Agency Partners. This model involves BroadStreet's provision of resources, tools and expertise to support the growth and performance of these independent insurance agencies. The company's co-ownership structure involves more than 800 colleagues who hold equity in their respective Core Agencies. The new partnership is expected to strengthen BroadStreet's long-term strategy, which includes further investments in technology and digital transformation. BroadStreet CEO Mike O'Connor said: 'BroadStreet is uniquely positioned as the partner of choice for successful entrepreneurs seeking new avenues for growth. Our differentiated co-ownership model and proven strategy empower our 30 Core Agency Partners to scale their businesses with confidence. 'For over a decade, the Ontario Teachers' team has been a value-added partner to us. We are excited to continue this collaboration and now join forces with Ethos, BCI and White Mountains, leveraging their collective expertise to enhance our capabilities and drive sustained growth.' BroadStreet has operations across all 50 US states and all ten Canadian provinces. Advisory services for the transaction were provided by Ardea Partners as the lead financial advisor to Ontario Teachers' and BroadStreet, with RBC Capital Markets and BMO Capital Markets as co-advisors. Legal counsel was provided by Latham & Watkins and Torys for Ontario Teachers' and BroadStreet, Kirkland & Ellis for Ethos Capital, Debevoise & Plimpton for BCI, and Cravath, Swaine & Moore for White Mountains. "Ethos Capital-led consortium to take ownership position in BroadStreet " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
14-04-2025
- Business
- Yahoo
Ethos Capital-led consortium to take ownership position in BroadStreet
A consortium of investors led by Ethos Capital, British Columbia Investment Management and White Mountains has agreed to acquire an ownership position in insurance brokerage BroadStreet Partners. The financial terms of the agreement remain undisclosed. Ontario Teachers' Pension Plan acquired a majority stake in BroadStreet in 2012 and will retain a co-control stake, continuing its partnership with the new investor group. BroadStreet Partners specialises in commercial and personal property & casualty and employee benefits and is known for its collaborative model with Core Agency Partners. This model involves BroadStreet's provision of resources, tools and expertise to support the growth and performance of these independent insurance agencies. The company's co-ownership structure involves more than 800 colleagues who hold equity in their respective Core Agencies. The new partnership is expected to strengthen BroadStreet's long-term strategy, which includes further investments in technology and digital transformation. BroadStreet CEO Mike O'Connor said: 'BroadStreet is uniquely positioned as the partner of choice for successful entrepreneurs seeking new avenues for growth. Our differentiated co-ownership model and proven strategy empower our 30 Core Agency Partners to scale their businesses with confidence. 'For over a decade, the Ontario Teachers' team has been a value-added partner to us. We are excited to continue this collaboration and now join forces with Ethos, BCI and White Mountains, leveraging their collective expertise to enhance our capabilities and drive sustained growth.' BroadStreet has operations across all 50 US states and all ten Canadian provinces. Advisory services for the transaction were provided by Ardea Partners as the lead financial advisor to Ontario Teachers' and BroadStreet, with RBC Capital Markets and BMO Capital Markets as co-advisors. Legal counsel was provided by Latham & Watkins and Torys for Ontario Teachers' and BroadStreet, Kirkland & Ellis for Ethos Capital, Debevoise & Plimpton for BCI, and Cravath, Swaine & Moore for White Mountains. "Ethos Capital-led consortium to take ownership position in BroadStreet " was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
08-04-2025
- Business
- Yahoo
New Gold acquires remaining interest in New Afton mine for $300m
Canadian gold mining company New Gold has signed an agreement with Ontario Teachers' Pension Plan to acquire the remaining 19.9% free cash flow interest in the New Afton copper-gold mine in British Columbia, Canada, for a $300m (C$425.51m) cash payment in return. The payment will be financed through available cash, borrowings from an existing credit facility and a gold prepayment financing arrangement. Approximately $100m of the cash payment will be funded through gold prepayment financing. Under this arrangement, New Gold will deliver a predetermined number of gold ounces over a 12-month term, which represents around 8% of the company's projected consolidated gold production for that period. This transaction will result in New Gold fully consolidating its free cash flow interest in the mine to 100%. Global investor Ontario Teachers' formed a strategic partnership with New Gold in 2020, acquiring a 46% free cash flow interest in the New Afton mine for $300m upfront. In 2024, this interest was reduced to 19.9% following a $255m cash payment from New Gold. Additional terms of the transaction include the termination of all existing agreements related to Ontario Teachers' interest in New Afton, such as the right to a $20m cash payment on a change of control of New Gold before 31 January 2026. The transaction's closing, expected at the beginning of May, is subject to customary conditions and does not require shareholder approval. New Gold anticipates increased upside potential from ongoing exploration activities at the New Afton mine, including a $17m investment in 2025 focused on the K-Zone. New Gold president and CEO Patrick Godin said: "This is an excellent transaction allowing New Gold to fully consolidate the free cash flow exposure to one of Canada's highest quality gold/copper assets, which we already own and operate. This transaction allows us to grow in an exceptional location with no diligence or integration risk, and with no equity dilution to our shareholders. "With the C-Zone ramp up progressing well, New Afton is on the verge of exceptional production growth and cost improvement that should lead to increased free cash flow generation. Our goal is to maximise this free cash flow generation at the mine, while continuing our exploration programme to extend mine life and create further value for our shareholders and stakeholders. We would also like to thank Ontario Teachers' for their support and partnership over the last five years." In August 2022, Foran Mining entered into a preliminary agreement for a C$200m investment from the Ontario Teachers' Pension Plan Board in the McIlvenna Bay project in eastern Saskatchewan, Canada. "New Gold acquires remaining interest in New Afton mine for $300m" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Ontario Teachers' Gains 9.4% in 2024, Boosted by Venture Investments and Stocks
(Bloomberg) -- Ontario Teachers' Pension Plan gained 9.4% last year, driven by strong returns in stocks, venture growth and commodities. New York Subway Ditches MetroCard After 32 Years for Tap-And-Go Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style Amtrak CEO Departs Amid Threats of a Transit Funding Pullback LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs NYC Plans for Flood Protection Without Federal Funds The performance boosted the fund's net assets to C$266.3 billion ($185.2 billion) as of the end of 2024, according to a statement Thursday, although it missed its overall benchmark of 12.9%. 'We have some categories where it's been a deliberate policy decision by us to be different where it's paid off,' Chief Executive Officer Jo Taylor said in an interview. 'Gold was our highest performer in 2024, and we've been relatively light on bonds and fixed income.' Venture growth holdings gained about 26% last year, as several assets performed well, with SpaceX standing out, according to Taylor. With the exception of the pension plan's real estate portfolio, which lost 0.7%, all of the fund's asset classes earned returns last year. Stock holdings gained 23.2%, with commodities surging 25.2%. Meanwhile, private equity notched an 11.7% gain and credit returned 17.2%. With markets being mired in uncertainty amid the US's trade war with other countries, Ontario Teachers' is taking a cautious approach. 'It's hard to invest with confidence in the time of volatility, Taylor said. Still, the pension fund is on the hunt for companies but has increased the bar in terms of the quality threshold, he said. Ontario Teachers' has been active in venture, private equity — particularly financial services — and infrastructure. The one sector where the opportunity set has changed is defense. 'Everybody's now realizing they have to spend money on defense, building their own capabilities,' Taylor said. 'If you invest in defense companies, I think you have to be quite careful about does it meet your values and your view of what's an appropriate company to be putting investment behind.' The Toronto-based pension plan created a department last year to 'focus our value creation efforts and drive the predicted outcomes from the portfolio,' according to the statement. The new group, called Portfolio Solutions, is led by Kevin Kerr, who was the head of the fund's infrastructure team in the Americas. According to Taylor, the team is trying to do a few things, including giving an accurate assessment of what to do with an asset, maximizing the potential of the company beyond just the investment teams, and 'if there is an asset where we think it's probably the right time to dispose of it, make sure it's really ready ahead of that process,' he said. Ontario Teachers', which manages around 80% of its assets internally, made several investments last year. This includes selling an equity stake in New Zealand's mobile tower company Connexa and acquiring a co-control stake in Stockholm-based financial adviser Max Matthiessen from private equity firm Nordic Capital. In 2024, Ontario Teachers' posted a foreign currency gain of nearly C$7 billion, primarily driven by the appreciation of the US dollar compared with the loonie. The fund's net exposure to the greenback is 'significantly' larger than any other foreign currency. (Adds quotes from an interview with the chief executive officer throughout.) A New 'China Shock' Is Destroying Jobs Around the World Tesla's Gamble on MAGA Customers Won't Work How TD Became America's Most Convenient Bank for Money Launderers The Real Reason Trump Is Pushing 'Buy American' The Future of Higher Ed Is in Austin ©2025 Bloomberg L.P.
Yahoo
21-03-2025
- Business
- Yahoo
Global Risk Spurs Ontario Pension Fund to Revamp PE Strategy
(Bloomberg) -- Ontario Teachers' Pension Plan is re-examining its private equity unit, aiming to lean more on partnerships rather than owning entire firms as it seeks to mitigate risk. New York Subway Ditches MetroCard After 32 Years for Tap-And-Go LA Faces $1 Billion Budget Hole, Warns of Thousands of Layoffs Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style Chicago Transit Faces 'Doomsday Scenario,' Regional Agency Says Amtrak CEO Departs Amid Threats of a Transit Funding Pullback For decades, the pension fund in Canada's most populous province has bought companies outright within its private equity business, and also backed firms alongside partners and external managers. Now Ontario Teachers' — which oversees C$266.3 billion ($185.2 billion) — will focus that business 'more on a partner basis,' Chief Executive Officer Jo Taylor said in an interview. With all of the uncertainty in the world, 'you dial back the risk by doing it with a partner rather than doing it on your own,' he said. Canada's biggest pensions, known as the Maple Eight, oversee roughly C$2.3 trillion ($1.6 trillion) and have a distinctive strategy that focuses on long-term bets — often wholly owning firms they're backing. But a prolonged deal drought amid elevated interest rates and President Donald Trump's trade war are prompting pensions to rethink their models. Ontario Teachers' has another reason for shifting its approach to its C$60.4 billion private equity portfolio: the complexities that come with operating its companies. 'Assets are taking more time, resources and effort to get to their full potential,' Taylor said. 'Having partners who can help with that journey and actually that work is often a way of sharing the load.' Taylor didn't rule out buying controlling stakes on its own. While Ontario Teachers' is scaling back on buying new firms, it's expanding existing portfolio firms through acquisitions. Insurance broker BroadStreet Partners, for example, has been growing by gobbling up other firms. In the 1990s, Ontario Teachers' pioneered the so-called Canadian Model of managing assets in-house, championing independent governance and employing sophisticated staff who travel around the world in search of lucrative investments. Other major Canadian pensions followed suit and became known as the Maple Eight — and now Ontario Teachers' peers are also looking to lean more on external managers for private equity deals. Caisse de Depot et Placement du Quebec said last month that it will scale back its direct investing and team up with third-party managers. And Ontario Municipal Employees Retirement System halted direct private equity investments in Europe last year, shifting its exposure in the region by investing alongside partners and third-party managers. 'Business as Usual' Ontario Teachers' is also reshuffling its management team within its private capital unit. The pension's new interim executive managing director for equities, Dale Burgess, now oversees private equity — along with infrastructure and natural resources. 'He's going to do that for a period of time, and what we're trying to do is figure out what do we need from a leadership point of view around private equity,' Taylor said. The pension fund doesn't plan to replace former senior managing director Jean-Charles Douin, who left last year and focused on direct investing within private capital out of the London office. Iñaki Echave, previously co-head with Douin for the Europe, Middle East and Africa private capital team, is Teachers' private capital leader in that region, according to Taylor. It's still 'business as usual,' said Taylor, who said the fund is also altering its approach to public equities by prioritizing passive investing over stock picking. 'I think it's going to have more of a passive feel to it,' he said. Putting pensioners' money in indexes and investing passively 'probably overall is a better bet' than trying to outperform the market, which requires more technology and data, Taylor said. Ontario Teachers' had C$37.4 billion of public equities as of Dec. 31, according to its annual report. (Updates to add dollar figure of public equity exposure in the last paragraph. An earlier version corrected the penultimate paragraph to remove a statement that said the fund has abandoned its active stock-picking strategy.) A New 'China Shock' Is Destroying Jobs Around the World Tesla's Gamble on MAGA Customers Won't Work How TD Became America's Most Convenient Bank for Money Launderers One Man's Crypto Windfall Is Funding a $1 Billion Space Station Dream The Real Reason Trump Is Pushing 'Buy American' ©2025 Bloomberg L.P. Sign in to access your portfolio
