Thoughts on OPTrust Private Markets?

Based on the most helpful WSO content, here's what you need to know about Canadian pension funds like OPTrust and how they compare:

1. Deal Activity:

   • OPTrust, like other smaller Canadian pension funds (e.g., PSP, HOOPP, IMCO), tends to have less deal activity compared to larger players like CPPIB, OTPP, and OMERS. These larger funds are known for their ability to source and execute deals independently, often functioning as GPs. Smaller funds like OPTrust may rely more on partnerships with GPs or co-investments.

2. Compensation:

   • Smaller pension funds, including OPTrust, generally pay less than the larger funds. For example, CPPIB and OTPP are known to pay higher salaries and bonuses, with analyst-level roles at CPPIB reportedly offering $120-140k CAD annualized. OPTrust's comp is likely below this range, aligning more with other smaller funds.

3. Work-Life Balance (WLB):

   • Pension funds, in general, are highly regarded for their work-life balance. Employees often report consistent hours (e.g., 9-6/7) with minimal weekend work, even during live deals. This is a significant advantage over traditional private equity or investment banking roles.

4. Exits:

   • OPTrust and similar smaller funds may not have a long history of high-profile exits compared to larger funds like CPPIB or OTPP. This could be due to their more recent shift toward active investing or their smaller scale. Larger funds often attract talent from top-tier banks and consulting firms, which can lead to stronger exit opportunities.

5. Comparison to Larger Funds:

   • Larger funds like CPPIB, OTPP, and OMERS are more competitive in terms of deal size, global reach, and compensation. They also tend to have more robust internal mobility and career progression opportunities. Smaller funds like OPTrust may offer a more intimate work environment but lack the same level of prestige and exit opportunities.

In summary, OPTrust likely offers a solid work-life balance and a collaborative culture but may lag behind larger Canadian pension funds in terms of compensation, deal activity, and exit opportunities. If you're prioritizing lifestyle and stability, it could be a good fit, but for those seeking high-profile deals or exits, larger funds might be more appealing.

Sources: How competitive is Private Equity in Canada?, What is Canada comp like?, Brookfield vs. Onex vs. Altas [TORONTO OFFICE] - Which One is Best?, Private Equity in Canada - Updated, Canadian Junior Bankers - Where are you going?