Tuesday, June 25, 2013

Going Direct: The Case of Teachers' Private Capital

PRAHL Michael, ZEISBERGER Claudia, RAMANATHAN Deepa 
©2013 INSEAD Case Study
Also available: Teaching Note

The case traces the evolution of the private equity investment platform of the Ontario Teachers’ Pension Plan (Teachers’). Unlike the typical traditional pension fund, Teachers’ has forged a bold, pioneering approach to investing by making a concerted push towards direct investing. The case discusses the trade-offs involved in developing a direct investing platform.

Pedagogical Objectives: The case discusses the advantages and limitations of the direct investing model, contrasts it with other approaches to investing in private equity, and raises important issues for institutional investors pursuing strong risk-adjusted returns. It requires students to think about the many challenges that arise in building and managing a comprehensive private equity programme.