Dechert advises pension plan on investment

Dechert has recently provided legal counsel to Ontario Teachers’ Pension Plan, a prominent global institutional investor, regarding a significant joint venture with M&G Investments. This collaboration is intended to enhance the scaling of a multi-billion euro collateralised loan obligation (CLO) platform, marking a crucial step in the European financial market.

Under this partnership, Ontario Teachers’ Pension Plan has committed to offering investment capacity of up to €200 million specifically for equity investments in future M&G Margay CLO issuances. Additionally, the pension plan will partake in the long-term economics of M&G’s European CLO business, further underlining their commitment to facilitating the sustained growth of the platform.

This joint venture aims to leverage the combination of M&G's established track record, in-house credit research and extensive investment expertise in European broadly syndicated loans alongside Ontario Teachers’ considerable institutional CLO investment experience and capital. The collaboration is designed to support disciplined platform growth and seeks to deliver attractive risk-adjusted returns across varying market cycles. Capital will be deployed on a selective basis in accordance with the mutually agreed investment framework.

The core Dechert team advising Ontario Teachers’ included global finance partners Christopher P. Duerden and Aaron Scott, as well as corporate partners Sam Whittaker and Steve Pratt. They were supported by corporate senior associate Raul Vellani and global tax partner Dan Hawthorne, who contributed valuable expertise in navigating the complexities of this significant investment.