Latest news with #OntarioTeachers'PensionPlan
Yahoo
a day ago
- Business
- Yahoo
Exclusive: Gusto launches $200 million–plus tender offer
Gusto, an HR tech startup valued at more than $9 billion, is conducting an over $200 million tender offer via a new deal led by the Ontario Teachers' Pension Plan. The tender offer, which begins Monday and runs through July 8, will allow employees in the company to cash out some of their shares while giving the Canadian fund its first stake in the company. 'Given the momentum, we've had investors interested in owning Gusto stock for a long time,' Gusto cofounder and CEO Josh Reeves told Fortune via email. The offer will be open to both current and former employees with a minimum of two years of tenure. Gusto declined to disclose price per share and whether there is a maximum number of shares that employees can sell. The deal was done at Gusto's last valuation, $9.3 billion, and is led by Teachers' Venture Growth, which is part of Ontario Teachers' Pension Plan. (OTPP, the largest single-profession pension plan in Canada serving over 340,000 current and retired teachers, is also an investor in Canva, Databricks, and SpaceX.) OTPP is the anchor for the deal, and is joined by new and existing Gusto investors. It's a full-circle moment of sorts—Reeves' parents are both teachers. The tender offer, the third that Gusto has arranged for employees since its founding in 2012, comes as the market for initial public offerings remains limited. Several tech companies, including Circle and Omada Health, have had IPOs in recent weeks, but the overall number of public listings remains well below historical norms. Reeves declined to comment on Gusto's IPO plans, telling Fortune: 'Gusto has been a long-term focused, multi-decade company from day one … When we have more details to share on an IPO, we'll share it.' The company's last employee tender offer was in 2021, done in addition to the startup's $175 million Series E funding round. Gusto—founded in 2011 by Reeves, Tomer London, and Edward Kim—has been free cash flow positive since early 2023. As Fortune reported in May 2024, Gusto generated north of $500 million in revenue in its 2023 fiscal year. The company also said that it's been growing over the past year, driven by the expansion of existing products like health benefits and 401(k) management. In 2024, Gusto's 401(k) business grew its ARR, or annual recurring revenue, about 50% year over year, while the unicorn's Gusto Money spending account product grew ARR over 140% year over year. HR tech has recently made headlines for the sprawling legal brawl between HR unicorns Rippling and Deel, but Reeves says that the space itself remains active and bright. In 2025, Reeves added, the company is set to add 150,000 new small businesses to its platform, and is actively hiring, with a particular focus on R&D. 'There is tremendous opportunity in the broader HR tech space,' said Reeves. 'More businesses are being created while at the same time more rules and regulations are being introduced. Gusto can help. I have conviction that there will be multiple $100 billion–plus new companies built in this space, including Gusto. And as a reminder, Intuit is a $200 billion–plus company today; ADP is a $100 billion–plus company today; and Paychex is a $50 billion–plus company today.' This story was originally featured on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
'Big gains to be had' if Canada's pension fund giants invested more at home: Desjardins
Even a small shift in Canada's enormous pension funds' investment focus towards domestic assets could lead to 'big gains' in the domestic market, a new report from Desjardins Economic Studies says. Most of the funds' roughly $3.6 trillion in investments are currently in foreign assets, Desjardins foreign exchange strategist Mirza Shaheryar Baig writes, but there is an appetite for change both within government and the institutions. 'Due to their large size relative to the domestic market, any shift in their asset allocation or currency hedge ratios can have a significant impact on financial markets, and current market dynamics suggest that there is some scope for change.' Of that $3.6 trillion — an amount that easily exceeds the total value of Canadian mutual funds and ETFs combined — around $1 trillion is managed by the Canada Public Pension Investment Board (CPPIB) and the Caisse de dépôt et placement du Québec (CDPQ), Baig says, while the rest is with 'various employer‑based or trusteed pension plans' such as the Ontario Teachers' Pension Plan. The funds take in money from their investments and worker contributions, but also pay out benefits. Whatever remains needs to be invested, Baig says. That amount is typically very large and typically invested outside the country. In 2024 it was around $105 billion, the Desjardins report says, with $31 billion from excess contributions, and $74 billion from investment income . The funds will likely need to spend a similar amount this year. An emerging movement to encourage the funds to invest more in Canada may be gathering force. Desjardins notes that several small measures in the federal government's Fall Economic Statement were designed to encourage more domestic pension investment, and since then the 'buy Canadian' movement spurred by trade tensions with the U.S. has brought the funds' investing might into even sharper focus. This week, the head of the CPPIB said in an interview with The Canadian Press the fund was 'excited' about investing in potential large-scale infrastructure projects championed by the newly-elected prime minister, Mark Carney. Overall, good macroeconomic policies and an investment-friendly environment could achieve the best of both Shaheryar Baig, Desjardins Economic Studies The government would need to build on the 'tweaks' in the Fall Economic Statement to improve the investment landscape for the funds, Baig writes, but doing so could result in a 'win-win' situation. 'Canada will need to expand investment in infrastructure in the coming years, and these projects could be well suited to the funds' long‑term investment objectives,' Baig says. 'Moreover, deepening capital markets and encouraging more corporate listings in Canada would help too. Overall, good macroeconomic policies and an investment-friendly environment could achieve the best of both worlds.' The report notes that even a one per cent shift by the social security funds out of international assets would leave them with around $10 billion to invest in Canada. A similar move by the trusteed pension funds would yield $24 billion. Another area where the funds' clout could have impact is foreign exchange and the loonie, the report says. Most of the funds' U.S. dollar-valued investments are unhedged given the long-held reputation of that currency as a safe haven, with an expectation that the U.S. dollar would appreciate against the loonie during volatile markets. 'However, this belief is now being openly questioned,' Baig writes. 'The loonie has become very undervalued on a range of metrics.' If the funds were to adjust their currency hedge ratios, Baig says, 'even a modest hedging program would lead to the Canadian dollar outperforming its usual relationship with fundamental drivers' such as interest rate differentials. Although the report declares that 'there are big gains to be had,' it also cautions that creating the conditions where these gains are possible could be challenging. ' Foreign assets have returned more than local assets for several years,' Baig notes. 'And it could take time for any changes in government policies to translate to a shift in strategic asset allocation targets.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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.
South China Morning Post
20-03-2025
- Business
- South China Morning Post
Ontario Teachers' to close Hong Kong office amid geopolitical risks and shift to Singapore
Ontario Teachers' Pension Plan, the third-largest pension fund in Canada, is shutting down its Hong Kong office as it reduces its exposure to the region amid persistent political risks. Advertisement 'We have made the difficult decision to close our Hong Kong office and plan to wind down on-the-ground operations over the coming 18+ months,' the fund's spokesman said in a statement on Thursday. 'As part of this change, certain Hong Kong-based employees will be offered the opportunity to transfer to Singapore. Unfortunately, others will leave the organisation and we're working to support each of them.' Ontario Teachers' managed C$255.8 billion (US$178.5 billion) as of mid-2024, making it the world's 20th largest by assets under management. It manages funds for 340,000 retired and working teachers and invests in more than 50 countries. Ontario Teachers' currently has about 20 employees in Hong Kong, down from 35 in September 2022. Photo: Xinhua The decision to close the office follows its move to step back from China deals and the departure of top regional executives. Advertisement
