OTPP private capital unit delivers 27% return for 2013

Private equity investments totaled C$14.8 billion at the end of the year, up from C$12 billion in 2012 as the increase in the value of existing investments plus new commitments outpaced realizations.

TPC made three new direct investments in 2013 and supported four new buyout funds, according to OTPP's annual report. This compares to 13 direct deals and 12 commitments to new or existing partnerships in 2012.

TPC generated a return of 18.6% in 2012, beating its benchmark. On a four-year basis it has delivered an annualized return of 20.3%, against a benchmark of 12.8%, while the IRR since inception in 1991 is 19.5%.

The distribution of TPC's portfolio as of year-end 2013 was 9% Canada, 50% US, 23% developed Europe and 18% Asia and rest of world.

Total OTPP assets stood at C$140.8 billion as the end of the year, up from C$129.5 billion. The fund generated C$13.7 billion in investment income - compared to C$14.7 billion in 2012 - with a return of 10.9% on a one-year basis, outperforming the benchmark.

OTPP's allocation to natural resources was C$10.8 billion, while it had C$30.9 billion in real assets, C$19.2 billion in real estate and C$11.7 billion in infrastructure.

The C$12 billion TPC had under management at the end of 2012 was split equally between fund and direct investments. This included commitments to GPs that invest in Asia out of global funds. Asia-based GPs, meanwhile, had received C$1.5 billion with a further C$1 billion committed and available to be drawn down.

The fund expects its co-investments in Asia to increase following the opening of a Hong Kong office last year.

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