(Bloomberg) -- The Ontario Municipal Employees Retirement System will stop making direct private equity investments in Europe as the pension fund overhauls its operations there, according to people familiar with the matter.
Omers plans to shift its exposure in the region by investing alongside partners and third-party managers, said the people, who asked not to be identified discussing confidential information.
Jonathan Mussellwhite, who led private equity in Europe since 2018, left Omers earlier this month, a spokesperson said in a statement Thursday. The pension fund said previously that Michael Graham, its global head of private equity, will retire in February. Omers will launch a global funds strategy within a new group called Private Capital.
The C$25.1 billion ($18.6 billion) private equity portfolio will be split, with Michael Block leading the global funds strategy, while Eric Haley continues to oversee the North American buyout program.
“This new strategy will complement, rather than compete with, our buyout strategy, ensuring a diversified investment approach,” the spokesperson said. “A direct-drive PE business remains core to our investment strategy.”
Omers had net assets totaling C$133.6 billion at the end of June. Last year, its venture capital arm pulled out of Europe after setting up a $332 million fund in 2019 to focus on startups there.
Private equity dealmaking in Europe remains subdued, with buyers and sellers struggling to agree on valuations, hobbling mergers and acquisitions activity.
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