Canada's Pensions & Insurers Hoard $360 Billion in Global Private Credit

Canadian pension funds and insurers have amassed about $360 billion in private-credit exposure, most of which is invested outside Canada. According to new research from the Bank of Canada, this highlights the growing role of Canadian institutional investors in global private lending.

The findings show that large Canadian pension funds held around $155 billion in private credit at the end of 2025, equal to roughly 9% of their invested assets. The country's three largest life insurers had more than $144 billion in private-credit exposure in the first quarter of 2026, accounting for about 22% of their invested assets.

Most of this exposure is tied to the US, where private-credit firms have increasingly competed with banks and syndicated loan markets to finance leveraged buyouts and other corporate transactions. In contrast, Canadian companies still rely heavily on traditional lenders, such as banks and debt markets, for financing.