Investment Strategy
The CAAT Pension Plan manages approximately $18 billion in net assets on behalf of employees and retirees of Ontario’s colleges of applied arts and technology and a growing base of additional participating employers. Originally established to serve Ontario’s college system, CAAT has expanded its reach through the DBplus program, which extends defined benefit pension coverage to employees of non-college employers seeking access to a professionally managed multi-employer pension plan.
CAAT’s investment approach is designed to generate stable, long-term returns that support the plan’s benefit obligations and maintain a strong funded position. The portfolio is diversified across Canadian and global public equities, fixed income, real estate, private equity, infrastructure, and private credit. The plan employs a strategic asset allocation framework that balances growth-oriented investments with liability-matching and diversifying strategies.
The plan’s investment strategy is overseen by a Board of Trustees with equal representation from employee and employer groups. CAAT’s investment team works with external investment consultants and managers to implement the portfolio across all asset classes. The plan has consistently maintained a healthy funded ratio, reflecting disciplined asset-liability management and prudent investment practices.
Private Markets Approach
Private markets represent approximately 30% of CAAT’s total portfolio, encompassing private equity, real estate, infrastructure, and private credit. The alternatives allocation has grown as CAAT’s asset base has expanded, driven both by investment returns and by the addition of new employer groups through the DBplus program.
The private equity program invests across buyout, growth, and diversified strategies through external fund commitments and selective co-investments. CAAT partners with established GP firms across North America and internationally, with typical commitment sizes in the $50-150 million range. The plan evaluates new fund opportunities based on track record consistency, team quality, strategy differentiation, and alignment of interests.
Infrastructure investments target essential services assets including energy, transportation, utilities, and digital infrastructure. CAAT invests through commingled infrastructure funds and co-investment vehicles, seeking stable, inflation-linked returns that match well with the plan’s long-duration liabilities.
Real estate allocations provide exposure to diversified property markets through commingled funds and direct investments. The portfolio includes Canadian and international properties spanning office, industrial, residential, and logistics sectors. Real estate serves as both an income generator and an inflation hedge within the broader portfolio.
Private credit investments span corporate direct lending, mezzanine, and structured credit strategies, providing current income and downside protection. CAAT has been growing its credit allocation as an alternative to traditional fixed income in a low-yield environment.
CAAT’s investment team is based in Toronto and is engaged in the Canadian and global institutional investment community. The plan’s growing asset base and expanding employer membership make it an increasingly significant LP in the Canadian pension landscape. Prospective fund managers should review CAAT’s publicly available annual reports for insight into investment priorities and allocation targets.
Frequently Asked Questions
What is the CAAT Pension Plan?
The CAAT Pension Plan is a jointly sponsored defined benefit pension plan that serves employees of Ontario's 24 colleges of applied arts and technology and a growing number of other participating employers. The plan manages approximately $18 billion in net assets and provides secure lifetime retirement income to its members. CAAT has expanded beyond its original college employer base through its DBplus program, which offers defined benefit pensions to new employer groups.
How does CAAT invest in private markets?
CAAT allocates approximately 30% of its portfolio to private markets including private equity, real estate, infrastructure, and private credit. The plan invests through a combination of external fund commitments and co-investments, working with established GP partners across strategies. CAAT has been growing its alternatives allocation as the plan's asset base has increased, reflecting a view that private markets offer return premiums that support long-term benefit security.
How can fund managers engage with CAAT?
CAAT's investment team evaluates GP relationships from its Toronto office, working with external consultants and leveraging industry networks to source and assess new fund opportunities. Prospective managers should demonstrate a differentiated investment strategy, a strong and stable team, and alignment of interests with long-term institutional investors. CAAT values transparent reporting and clear communication from its GP partners.
