Shifting Tides in Private Equity: A New Era of Collaboration and Impact
April 27, 2025, 10:24 am
The world of private equity is undergoing a seismic shift. The recent retirements and strategic pivots at major investment firms signal a transformation in how capital is deployed. The landscape is changing, and the focus is shifting from control to collaboration.
Eric Haley, the head of buyouts at Ontario’s pension fund, is stepping down. His retirement marks a significant change in the private equity sector. Haley has been a key player in the Ontario Municipal Employees Retirement System (Omers) for years. His departure is not just a personal milestone; it reflects broader trends in the industry.
Omers is rethinking its private equity strategy. Under Ralph Berg, the new chief investment officer, the firm is moving away from direct investments in Europe. Instead, it’s opting for partnerships with external managers. This shift is a response to rising borrowing costs and a more challenging deal environment. The allure of controlling portfolio firms is fading.
Haley’s exit is part of a larger wave of changes at Omers. In recent months, several high-profile departures have occurred. Alexander Fraser, a former partner at a Temasek-backed fund, has taken the reins as global head of private equity. Michael Graham retired earlier this year, and Jonathan Mussellwhite left his role overseeing European investments. These changes indicate a period of transition and realignment within the firm.
The so-called Maple Eight, a group of leading Canadian pension funds, are also reevaluating their strategies. They are leaning more on partnerships rather than taking large stakes in private companies. This trend is not isolated to Omers. The Ontario Teachers’ Pension Plan is also reexamining its buyout unit. They aim to mitigate risk by collaborating with partners instead of owning controlling interests. Similarly, Caisse de Depot et Placement du Quebec is scaling back direct investments.
The landscape is shifting. Higher borrowing costs are squeezing deal activity. The days of aggressive buyouts may be behind us. Instead, firms are seeking to share the burden and risk with partners. This collaborative approach could lead to more sustainable investments.
Meanwhile, in Asia, the impact investment firm ABC Impact is making waves. Backed by Temasek, it has successfully closed its second fund, valued at over $600 million. This fund aims to address pressing social and environmental challenges in the region. The firm’s strategy focuses on sustainable food systems, inclusive finance, healthcare, and clean energy.
ABC Impact’s success highlights a growing trend in the investment world. There is a convergence of private capital and development finance. Investors are increasingly recognizing that market-based strategies can tackle systemic issues. The focus is on creating positive outcomes where traditional models have failed.
The firm’s investments reflect this commitment. They include DCDC Kidney Care, which provides affordable dialysis treatment in India, and Tekoma Energy, a renewable energy developer. These projects are not just about profit; they aim to improve lives and create sustainable solutions.
The support from various limited partners, including the Asian Development Bank (ADB) and ultra-high-net-worth individuals, underscores the importance of impact investing. The ADB’s involvement is particularly noteworthy. They recognize the funding gap for growth-stage businesses in the region. Their partnership with ABC Impact aims to catalyze impact capital across Asia and the Pacific.
As the world faces complex social and environmental challenges, the role of impact investing becomes more critical. Investors are seeking ways to align their capital with their values. They want to make a difference while achieving financial returns. This dual focus is reshaping the investment landscape.
The shift in private equity and the rise of impact investing are interconnected. As traditional models face challenges, new approaches are emerging. Collaboration is becoming the norm. Firms are recognizing that they can achieve more together than alone.
In this evolving landscape, the emphasis is on adaptability. Firms must be willing to pivot and embrace new strategies. The days of rigid, top-down control are fading. Instead, a more fluid, partnership-oriented approach is taking center stage.
The future of private equity is bright, but it requires a new mindset. Investors must be open to collaboration and innovation. They must be willing to explore new avenues for impact. The landscape is changing, and those who adapt will thrive.
In conclusion, the retirement of key figures like Eric Haley and the rise of firms like ABC Impact signal a new era in private equity. The focus is shifting from control to collaboration. As the industry evolves, the potential for positive impact grows. Investors have the opportunity to create a better world while achieving financial success. The tides are turning, and the future looks promising.
Eric Haley, the head of buyouts at Ontario’s pension fund, is stepping down. His retirement marks a significant change in the private equity sector. Haley has been a key player in the Ontario Municipal Employees Retirement System (Omers) for years. His departure is not just a personal milestone; it reflects broader trends in the industry.
Omers is rethinking its private equity strategy. Under Ralph Berg, the new chief investment officer, the firm is moving away from direct investments in Europe. Instead, it’s opting for partnerships with external managers. This shift is a response to rising borrowing costs and a more challenging deal environment. The allure of controlling portfolio firms is fading.
Haley’s exit is part of a larger wave of changes at Omers. In recent months, several high-profile departures have occurred. Alexander Fraser, a former partner at a Temasek-backed fund, has taken the reins as global head of private equity. Michael Graham retired earlier this year, and Jonathan Mussellwhite left his role overseeing European investments. These changes indicate a period of transition and realignment within the firm.
The so-called Maple Eight, a group of leading Canadian pension funds, are also reevaluating their strategies. They are leaning more on partnerships rather than taking large stakes in private companies. This trend is not isolated to Omers. The Ontario Teachers’ Pension Plan is also reexamining its buyout unit. They aim to mitigate risk by collaborating with partners instead of owning controlling interests. Similarly, Caisse de Depot et Placement du Quebec is scaling back direct investments.
The landscape is shifting. Higher borrowing costs are squeezing deal activity. The days of aggressive buyouts may be behind us. Instead, firms are seeking to share the burden and risk with partners. This collaborative approach could lead to more sustainable investments.
Meanwhile, in Asia, the impact investment firm ABC Impact is making waves. Backed by Temasek, it has successfully closed its second fund, valued at over $600 million. This fund aims to address pressing social and environmental challenges in the region. The firm’s strategy focuses on sustainable food systems, inclusive finance, healthcare, and clean energy.
ABC Impact’s success highlights a growing trend in the investment world. There is a convergence of private capital and development finance. Investors are increasingly recognizing that market-based strategies can tackle systemic issues. The focus is on creating positive outcomes where traditional models have failed.
The firm’s investments reflect this commitment. They include DCDC Kidney Care, which provides affordable dialysis treatment in India, and Tekoma Energy, a renewable energy developer. These projects are not just about profit; they aim to improve lives and create sustainable solutions.
The support from various limited partners, including the Asian Development Bank (ADB) and ultra-high-net-worth individuals, underscores the importance of impact investing. The ADB’s involvement is particularly noteworthy. They recognize the funding gap for growth-stage businesses in the region. Their partnership with ABC Impact aims to catalyze impact capital across Asia and the Pacific.
As the world faces complex social and environmental challenges, the role of impact investing becomes more critical. Investors are seeking ways to align their capital with their values. They want to make a difference while achieving financial returns. This dual focus is reshaping the investment landscape.
The shift in private equity and the rise of impact investing are interconnected. As traditional models face challenges, new approaches are emerging. Collaboration is becoming the norm. Firms are recognizing that they can achieve more together than alone.
In this evolving landscape, the emphasis is on adaptability. Firms must be willing to pivot and embrace new strategies. The days of rigid, top-down control are fading. Instead, a more fluid, partnership-oriented approach is taking center stage.
The future of private equity is bright, but it requires a new mindset. Investors must be open to collaboration and innovation. They must be willing to explore new avenues for impact. The landscape is changing, and those who adapt will thrive.
In conclusion, the retirement of key figures like Eric Haley and the rise of firms like ABC Impact signal a new era in private equity. The focus is shifting from control to collaboration. As the industry evolves, the potential for positive impact grows. Investors have the opportunity to create a better world while achieving financial success. The tides are turning, and the future looks promising.