Investment Strategy
OMERS is one of Canada’s largest defined benefit pension plans, managing approximately $130 billion in net assets on behalf of over 600,000 active and retired municipal employees across Ontario. The system covers employees of municipalities, school boards, transit authorities, police and fire services, and other local government bodies throughout the province.
OMERS’ investment approach is distinguished by its heavy emphasis on direct investing across private markets. Unlike many pension funds that rely primarily on external managers, OMERS operates dedicated investment platforms for private equity (OMERS Private Equity), infrastructure (OMERS Infrastructure), and real estate (Oxford Properties Group). This direct model gives OMERS greater control over portfolio construction, reduces external management fees, and allows the organization to build deep operational expertise in its core investment areas.
The total portfolio is diversified across public equities, fixed income, private equity, infrastructure, real estate, and credit. OMERS targets a long-term net real return of 4% above inflation, which supports the plan’s funded status and benefit security. The investment strategy is reviewed regularly by the OMERS Administration Corporation board based on capital market outlook and liability considerations.
Private Markets Approach
Private markets represent approximately 45% of OMERS’ total portfolio, spanning private equity, infrastructure, and real estate. This allocation is among the highest of any major pension fund globally, reflecting OMERS’ conviction that direct private market investing delivers superior risk-adjusted returns over long holding periods.
OMERS Private Equity focuses on direct buyouts and growth investments in mid-market companies across North America and Europe. Target sectors include healthcare, technology and software, financial services, food and consumer, and industrials. The platform typically acquires controlling or significant minority stakes and works closely with management teams to drive operational improvement and growth. Notable portfolio companies have included Lifemark Health Group, Veriforce, and Caliber Collision.
OMERS Infrastructure invests in essential infrastructure assets globally, with a portfolio spanning energy generation and distribution, transportation, telecommunications, and water and wastewater systems. The platform pursues large-scale direct investments, often partnering with other institutional investors on transactions. The infrastructure portfolio includes interests in assets across North America, Europe, Asia-Pacific, and the Middle East.
Oxford Properties Group, OMERS’ real estate platform, is one of the world’s largest real estate investors, developers, and managers. Oxford’s portfolio includes office, retail, industrial, logistics, life sciences, and residential properties across major global markets.
While OMERS conducts the majority of its private investing in-house, the organization does maintain selective relationships with external GPs for co-investments, fund commitments in specialized strategies, and platform-level partnerships. Fund managers seeking to engage with OMERS should have a clearly differentiated strategy and the ability to offer co-investment or partnership opportunities that complement OMERS’ direct capabilities.
Frequently Asked Questions
How does OMERS invest in private equity?
OMERS invests in private equity primarily through OMERS Private Equity, its dedicated direct investment platform. OMERS PE makes direct investments in mid-market companies across North America and Europe, focusing on sectors including healthcare, technology, financial services, and industrials. OMERS also maintains selective relationships with external fund managers but conducts the majority of its PE activity in-house.
What is OMERS' approach to infrastructure?
Infrastructure is a cornerstone of OMERS' investment strategy, managed through OMERS Infrastructure. The platform invests in large-scale essential infrastructure assets including energy, transportation, telecommunications, and water utilities globally. OMERS Infrastructure operates as a direct investor, typically acquiring controlling or significant stakes in infrastructure businesses, and manages a portfolio valued at tens of billions of dollars.
How can fund managers work with OMERS?
OMERS conducts most of its private market investing through direct platforms (OMERS Private Equity and OMERS Infrastructure) rather than through external fund commitments. However, OMERS does maintain selective GP relationships for co-investments, fund commitments in niche strategies, and partnership opportunities. Fund managers can engage through industry conferences, intermediary introductions, or by contacting OMERS' investment teams directly. OMERS is based in Toronto with offices in New York, London, Singapore, and Sydney.
