The Ontario Teachers’ Pension Fund (Canada) has announced that it is planning to write off an investment of $95 million made through the Venture Growth Platform (TVG) in the failed crypto exchange FTX and its daughter in the United States at the end of 2023.
This investment was equivalent to 0.05% of the fund’s AUM and was made in 2019 to invest in late-stage technology companies.
The Pension Fund stressed that despite the failure in transactions with FTX, TVG had achieved its goals. The organization assured that a thorough due diligence of the selected projects was conducted, engaging qualified external consultants and investment partners.
However, the procedure did not reveal the risks associated with the platform. Due to the limited amount of investments, this case did not affect the group’s portfolio as a whole as the strategy implies diversification across asset classes, geography and time horizons.
The Pension Fund has expressed its support for the efforts of regulators to investigate the activities of the platform’s management, which was accused of fraud, and assured that “they will use the experience gained to strengthen the approach to investment.”
