Weil Gotshal & Manges has acted for new client the Ontario Teachers' Pension Plan on its debut European direct investment.

The private equity arm of the Canadian pension fund is set to buy Acorn Care and Education – which provides foster care and schools for children with learning disabilities – for a reported £150m from Phoenix Equity Partners and Acorn's management after outbidding UK buyout house HG Capital.

Teachers instructed Weil Gotshal for the first time with private equity partner Jonathan Wood leading the firm's team, supported by finance partner Michael Nicklin and corporate associate Simon Lyell.

Phoenix turned to regular adviser Travers Smith with private equity partner Edmond Reed at the helm. Acorn's management appointed Nabarro as counsel with corporate partner Warren Taylor the lead partner.

Teachers has almost $90bn (£54.8bn) in assets and is the largest single-profession pension plan in Canada. The fund has recently set up in Europe, with the intention of making further direct investments.

Wood told Legal Week: "As a pension fund, Teachers has a massive amount of financial firepower at its disposal and its capital structure gives it more flexibility to stay in deals for longer if required. This was also one of the very few transactions which was able to secure bank financing in what continues to be a difficult banking market."

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