Teachers’ Private Capital has opened a London office for enhanced access to European and international private equity opportunities. The office is its first outside of Canada.

Teachers’ Private Capital is the private investment arm of the $106 billion Ontario Teachers’ Pension Plan. It has more than $4 billion invested in European private equity and infrastructure, and has been investing directly in companies and funds in Europe for more than 15 years.

“Our London office enables us to scout direct private equity investments as well as partnership commitment opportunities,” said Jim Leech, senior vp, Teachers’ Private Capital, in a news release. “The office will also give Teachers’ better access to our portfolio companies. Although we initially invested only as a minority shareholder with partners, as the fund has grown, we have moved to assume larger positions.”

Teachers’ works independently or with partners in direct private equity and mezzanine debt transactions. For the four years ended Dec. 31, 2006, Teachers’ private equity investments have achieved a rate of return of 33.3%, compared to 21.4% for its benchmark.

“We believe private capital will continue to generate considerable returns for our fund, and to optimize our efforts we need to be close to the market and the opportunities as they arise,” said Leech, adding that he expects the branch will grow with investment professionals from other asset classes, including infrastructure and real estate.

The new London branch is led by director Andrew Claerhout.