SENNA

OMERS Retracts Asia-Pacific Ambitions as Head Ashish Goyal Departs

HONG KONG - Ashish Goyal, the head of OMERS' Asia-Pacific operations, will depart the Canadian pension fund at the end of this year, marking the latest in a series of high-profile exits from the region.

The move comes as OMERS, which manages over $100 billion in assets, scales back its ambitions in the fast-growing but highly competitive Asian private equity market. Several of OMERS' Canadian pension fund peers, including the Canada Pension Plan Investment Board (CPPIB) and Caisse de dépôt et placement du Québec (CDPQ), have also recently pulled back resources from the region.

According to sources familiar with the matter, OMERS will now focus its Asia-Pacific efforts on a smaller number of key markets, with a reduced team. The pension fund had previously aimed to build a sizable regional platform, with Goyal leading an expansion that saw offices opened in Singapore, Sydney and Seoul.

"The Asia-Pacific region remains an important part of OMERS' global investment strategy, but the fund is taking a more selective and cautious approach given the challenging market conditions," one source said.

Goyal's departure follows that of several other senior OMERS executives in Asia, including Anand Batepati, the fund's former head of India, and Ted Wang, who led its China operations. OMERS has struggled to generate the returns it had hoped for from the region, the sources said.

The pullback by major Canadian pensions from Asia underscores the difficulties global investors have faced in deploying capital effectively in the region. Heightened geopolitical tensions, regulatory uncertainty and fierce competition for deals have all weighed on performance.

Other large institutions, such as the Abu Dhabi Investment Authority, have also recently trimmed their Asia-focused teams as they re-evaluate their strategies.

Industry observers note that the Canadian pensions, which had built formidable reputations as savvy global investors, may have overextended in their pursuit of Asian growth. The region's complexities and the need for local expertise have proven challenging, they say.

"The Canadians came in with big ambitions, but they've struggled to translate that into consistent outperformance," said one Asia-focused private equity executive. "It's a humbling reminder that Asia is a tough market to crack, even for the most sophisticated investors."

As OMERS retracts its regional footprint, the departure of Goyal, a veteran of the Asian private equity scene, will leave a significant void. The fund will need to carefully manage the transition as it seeks to recalibrate its Asia strategy.