Ontario Teachers' Venture Growth Portfolio Delivers 30% Return
Ontario Teachers' Teachers' Venture Growth (TVG) portfolio delivered a 30.2% return in 2025, far outpacing its one-year benchmark of 18.5%, driven by valuation gains in stakes such as SpaceX and Databricks. TVG's fair value rose to $15.3 billion CAD from $10.4 billion in 2024 as the fund increased its allocation to venture growth to 6% of the total portfolio, up from 4%. Public equities also performed well, returning 15% versus a 13.9% benchmark. Offsetting those gains, the private equity portfolio posted a 5.3% loss and real estate faced headwinds, leaving OTPP just below its 7% target for overall 2025 returns. TVG invested across AI and enterprise software, space, HR tech, and observability.
What happened
The Ontario Teachers' Pension Plan (OTPP) reported that its Teachers' Venture Growth (TVG) portfolio returned 30.2% in 2025, well above the one-year benchmark of 18.5%. The fair value of TVG rose to $15.3 billion CAD, up from $10.4 billion CAD in 2024. Major contributors cited include existing equity positions in SpaceX and Databricks, alongside new and follow-on investments across AI and enterprise software.
Technical details
TVG focuses on direct investments in companies at Series B and later stages and selective commitments to growth funds across North America, Europe, and Asia. The portfolio mix and notable 2025 activity included:
- •Stakes in SpaceX and Databricks that drove valuation uplifts
- •Direct investments in Anthropic, Gusto, Grafana Labs, Darwinbox, Quantexa, and Kraken
TVG closed 2025 at 6% of OTPP's total assets, up from 4% a year earlier, reflecting a deliberate reweighting toward high-growth tech exposure.
Context and significance
The performance underscores a broader trend where large institutional investors are allocating more to late-stage venture and growth equity to capture concentrated upside in AI, cloud, and space-related leaders. OTPP's results show how a relatively small allocation can produce outsized absolute returns when high-conviction positions in companies like Databricks and SpaceX reprice. However, the gains were partly offset by a 5.3% loss in private equity and continued real estate pressures, which prevented OTPP from reaching its 7% overall return target. The report also references legacy losses, including a prior $95 million USD write-down tied to the failed FTX exchange, illustrating residual tail risks from earlier private-market exposures.
What to watch
Monitor whether OTPP further expands TVG's allocation and how it manages concentration risk around mega-cap private companies. For practitioners, OTPP's year highlights tradeoffs between high-conviction late-stage tech exposure and the diversification shortfalls that can leave overall returns vulnerable to underperforming private equity and real estate.
Scoring Rationale
OTPP's strong venture growth performance is notable for practitioners because it validates late-stage tech allocations and signals institutional appetite for AI and space exposures. The story is not frontier-changing but important for asset allocation and private-market strategy discussions.
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