Organizations invest significant resources in learning and development (L&D) to both enhance and protect their human capital. As such, they continue to search for innovative design and delivery approaches that are both cost efficient and learning effective. In this article, we consider one organization's use of a 3D virtual environment (VE) to bring a managerial and leadership development program, informed by collaborative learning principles, to globally distributed participants. To date, there is little empirical evidence that attests to the specific learning benefits of a VE, that is, benefits that derive from distinguishing features such as presence (i.e., the sense of 'being there' in the VE). Given this, and drawing from prior research, we develop and empirically test a model that examines the relationships among organizational participants' perceptions of presence, teamwork quality and outcomes. Our results provide important insights into the mechanisms underlying L&D processes and outcomes in VEs.