OTPP is ready for the next downturn

The Canadian pension fund is working hard on market downturn protection.

Ontario Teachers’ Pension Plan (OTPP) disclosed its preparation for the next market downturn.

Apart from ensuring its portfolio companies have proper financing facilities and management, it would also sell the minority stakes of portfolio companies as it sees frothy valuations in the market which it can realise the gains while maintaining control after the sales. In addition, the pension fund is also looking at special situation opportunities.

The pension fund allocates around C$30 billion ($23 billion; €20 billion) to private equity and approximately 70 percent of it are direct investments

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