Amit Chowdry of Pulse 2.0 reports Stonepeak And Bernhard Capital Partners acquire Cleco to strengthen Louisiana energy infrastructure:

Stonepeak and Bernhard Capital Partners announced an agreement to acquire Cleco Group from a consortium including Macquarie Asset Management, British Columbia Investment Management Corporation, and Manulife Investment Management, marking a significant transition in ownership of the Louisiana-based utility.

Headquartered in Pineville, Louisiana, Cleco serves approximately 298,000 residential, commercial, and industrial customers across 24 parishes and employs around 1,200 people. Following the transaction, the company will remain locally managed and operated, retain its workforce and benefits structure, and continue to be regulated by the Louisiana Public Service Commission.

The acquisition is expected to bring additional capital and operational expertise to support Cleco’s ongoing efforts to enhance grid reliability, expand infrastructure, and drive regional economic growth. Stonepeak is expected to hold the majority interest in the company upon completion of the transaction.

Over the past decade, Cleco has invested approximately $3 billion in grid modernization and resiliency initiatives under its current ownership, strengthening system capacity and reliability. The company has also secured regulatory approval for its largest grid resiliency investment program, positioning it to meet increasing energy demand and support future development in the region.

The transaction aligns with both Stonepeak’s and Bernhard’s focus on investing in critical infrastructure and supporting long-term energy system resilience. The firms emphasized their commitment to maintaining Cleco’s legacy of reliable service while advancing innovation and economic development across Louisiana.

The deal is subject to customary regulatory approvals.

Support: Greenhill, a Mizuho affiliate, served as financial advisor to Stonepeak, with Simpson Thacher & Bartlett LLP acting as legal counsel; Centerview Partners LLC served as financial advisor and Latham & Watkins LLP as legal counsel to Bernhard; and Goldman Sachs & Co. LLC and Moelis & Company LLC served as financial advisors to Cleco and the selling consortium, with Kirkland & Ellis LLP and Phelps Dunbar LLP acting as legal counsel.

KEY QUOTES:

“Cleco provides safe, reliable and affordable electricity to our customers in support of their quality of life, and we take pride in the work of our dedicated, local employees who support the communities in which we all live. Cleco’s employees are central to our success. In the last decade, we’ve become more safe, efficient and modern. With support from new partners Stonepeak and Bernhard, we can strengthen system reliability and encourage regional economic growth. This transaction marks an important day for our community, our customers and our company.”

Bill Fontenot, President And Chief Executive Officer, Cleco

“We have a deep appreciation for the critical role Cleco plays in the communities it serves and look forward to partnering with Cleco and Bernhard to support management’s key initiatives. We are excited to extend our track record of investing in Louisiana’s energy infrastructure and believe Cleco is well positioned to be a driver of economic growth within its service territory, while providing dependable service to its customers.”

Rob Kupchak, Senior Managing Director, Stonepeak

“This investment advances Bernhard Capital Partners’ focus on strengthening the nation’s critical energy infrastructure, building more resilient communities and accelerating innovation across the energy sector. It also reflects our continued investment in Louisiana—its people, its economy and its future. Our partnership combines Bernhard’s operational expertise and deep local knowledge alongside Stonepeak’s experience with similar mission-critical companies to build upon Cleco’s century of service in our state. Together, we will drive meaningful economic growth while continuing Cleco’s legacy of delivering essential energy service to communities across Louisiana.”

Jeff Jenkins, Founder And Partner, Bernhard Capital Partners

“Cleco’s progress in recent years reflects its strong collaboration with Louisiana communities, regulators and political leaders to build a more reliable system that meets customers’ evolving needs and supports economic growth across its service territory. It has been our privilege to have served as a steward of Cleco over the past 10 years as the company has navigated both challenges, such as maintaining high service standards during COVID-19 and the hurricanes of 2020 and 2021, and better times such as the growth phase the region has seen over the last few years.”

Aaron Rubin, Senior Managing Director And Head Of Americas Energy Infrastructure, Macquarie Asset Management

“Together with Macquarie and our consortium partners, we’ve worked closely with Cleco’s management team to strengthen and modernize its operations through long-term, targeted capital investments, reinforcing the company’s readiness to meet growing power demand across the region.”

Lincoln Webb, Executive Vice President And Global Head, Infrastructure & Renewable Resources, British Columbia Investment Management Corporation 

Earlier today, BCI put out a press release stating Stonepeak and Bernhard Capital Partners to acquire Cleco:

Follows a decade of resilience-focused grid modernization under the ownership of Macquarie Asset Management, BCI and Manulife Investment Management

NEW YORK, BATON ROUGE & PINEVILLE, LA., and VICTORIA, BC – Stonepeak and Bernhard Capital Partners (“Bernhard”) today announced an agreement to acquire Cleco Group LLC (“Cleco” or the “Company”), from a consortium comprised of Macquarie Asset Management, British Columbia Investment Management Corporation (“BCI”) and Manulife Investment Management (“the Consortium”).

Headquartered in Pineville, Louisiana, Cleco is a regulated electric utility with 1,200 dedicated employees serving approximately 298,000 residential, commercial and industrial customers in 24 Louisiana parishes. Following the close of the transaction, Cleco will:

• Remain locally managed and operated with its headquarters in Pineville
• Maintain its operating footprint and continue serving customers across Louisiana
• Retain employees and maintain compensation and benefit levels
• Continue to be regulated by the Louisiana Public Service Commission
• Remain focused on sustaining state leading reliability levels

This transaction will bring investors with deep access to capital, industry expertise and a local presence to support Cleco, a utility with more than 90 years in operation, in continuing to provide safe, reliable service to its customers. The strategic partnership and acquisition will also further Cleco’s position as a critical energy service provider and economic development engine across its service territory and the state of Louisiana.

“Cleco provides safe, reliable and affordable electricity to our customers in support of their quality of life, and we take pride in the work of our dedicated, local employees who support the communities in which we all live,” said Bill Fontenot, President & Chief Executive Officer at Cleco. “Cleco’s employees are central to our success. In the last decade, we’ve become more safe, efficient and modern. With support from new partners Stonepeak and Bernhard, we can strengthen system reliability and encourage regional economic growth. This transaction marks an important day for our community, our customers and our company.”

“We have a deep appreciation for the critical role Cleco plays in the communities it serves and look forward to partnering with Cleco and Bernhard to support management’s key initiatives,” said Rob Kupchak, Senior Managing Director at Stonepeak. “We are excited to extend our track record of investing in Louisiana’s energy infrastructure and believe Cleco is well positioned to be a driver of economic growth within its service territory, while providing dependable service to its customers.”

“This investment advances Bernhard Capital Partners’ focus on strengthening the nation’s critical energy infrastructure, building more resilient communities and accelerating innovation across the energy sector,” said Jeff Jenkins, Founder and Partner at Bernhard. “It also reflects our continued investment in Louisiana—its people, its economy and its future. Our partnership combines Bernhard’s operational expertise and deep local knowledge alongside Stonepeak’s experience with similar mission-critical companies to build upon Cleco’s century of service in our state. Together, we will drive meaningful economic growth while continuing Cleco’s legacy of delivering essential energy service to communities across Louisiana.”

Over the last decade, Cleco has modernized its operations and safe work practices while strengthening system capacity, positioning the company to support future load growth and new customers. Under the Consortium’s ownership, Cleco invested approximately $3 billion in support of projects like resiliency and to sustain its state-leading reliability. In November 2025, the Louisiana Public Service Commission unanimously approved the largest grid resiliency investment in Cleco’s history, enabling further system hardening and expansion.

“Cleco’s progress in recent years reflects its strong collaboration with Louisiana communities, regulators and political leaders to build a more reliable system that meets customers’ evolving needs and supports economic growth across its service territory,” said Aaron Rubin, Senior Managing Director and Head of Americas Energy Infrastructure at Macquarie Asset Management. “It has been our privilege to have served as a steward of Cleco over the past 10 years as the company has navigated both challenges, such as maintaining high service standards during COVID-19 and the hurricanes of 2020 and 2021, and better times such as the growth phase the region has seen over the last few years.”

“Together with Macquarie and our consortium partners, we’ve worked closely with Cleco’s management team to strengthen and modernize its operations through long-term, targeted capital investments, reinforcing the company’s readiness to meet growing power demand across the region,” said Lincoln Webb, Executive Vice President and Global Head, Infrastructure & Renewable Resources at BCI.

The transaction is subject to customary regulatory approvals. Upon close, Stonepeak will hold the majority interest in Cleco.

Greenhill, a Mizuho affiliate, served as financial advisor to Stonepeak, and Simpson Thacher & Bartlett LLP served as legal counsel to Stonepeak and the buyer consortium. Centerview Partners LLC served as financial advisor and Latham & Watkins LLP served as legal counsel to Bernhard. Goldman Sachs & Co. LLC and Moelis & Company LLC served as financial advisors to Cleco, Macquarie Asset Management, BCI and Manulife Investment Management, with Kirkland & Ellis LLP and Phelps Dunbar LLP serving as legal counsel.

Last week, I discussed insights from BCI's 2026 Investor Day where I noted this on infrastructure from Lincoln Webb, BCI's Global Head of Infrastructure and Renewable Resources:

BCI Infrastructure & Renewable Resources has navigated through a number of bumps in the road—the global financial crisis, euro crisis, COVID, post-COVID inflation. Part of the reason is the highly diversified portfolio across many sectors and countries. When you look at the portfolio level, it’s very resilient.” 

– Lincoln Webb, EVP & Global Head, Infrastructure & Renewable Resources 

Now: How the I&RR portfolio has remained resilient 

The resilience of BCI Infrastructure & Renewable Resources isn’t accidental. It’s the result of thoughtful construction and the application of a consistent set of principles over two decades and multiple market cycles: essential assets, defensive capital structures, and broad diversification.  

Today, the portfolio spans 30+ countries, multiple sectors, and invests in essential services that people depend on regardless of economic conditions. Essential assets — electricity, gas, water, digital infrastructure — don’t stop being necessary because markets are volatile. 

These principles have been tested repeatedly. The program has navigated through the global financial crisis, the Euro crisis, COVID and held steady through all of it.  And when post-COVID inflation spiked to near double digits, built-in passthrough mechanisms allowed revenues to increase alongside rising costs. 

Different shocks, different pressures but the result has been a resilient portfolio.   

Next: Positioning for the next decades of growth 

The megatrends that have driven infrastructure investment over the past two decades including digitization, energy security, and decarbonization, show no signs of slowing. And more recently, energy security and food security have come into focus. Globally, an estimated US$40 trillion2 in infrastructure investment is needed over the next 20 years to meet demand. Not all of that is accessible to private capital, but the investable opportunity set that meets the program’s risk-return profile remains sizeable. 

Decarbonization is a case in point. Policy uncertainty in the US has caused some capital to pull back from renewables, pushing returns on operating solar and wind assets from 5–6% to 9–10%, while demand for clean, reliable energy isn’t slowing. That gap between retreating capital and growing demand is exactly the kind of opportunity BCI is built to capture.  

Northview Energy is how that opportunity takes shape. BCI recently announced the acquisition of a portfolio of operating solar and wind assets under long-term contracts with high-quality energy buyers. The platform is built to grow with an agreement in place to acquire additional assets as the energy transition continues. 

The focus at BCI's Infrastructure portfolio over the years has been on building a resilient and diversified portfolio across regions and and focus on megatrends including digitization, energy security, and decarbonization.

The investment in Cleco done alongside Macquarie Asset Management and Manulife Investment Management is a perfect example.

Here is the key passage I highlighted above:

Over the past decade, Cleco has invested approximately $3 billion in grid modernization and resiliency initiatives under its current ownership, strengthening system capacity and reliability. The company has also secured regulatory approval for its largest grid resiliency investment program, positioning it to meet increasing energy demand and support future development in the region. 

The company invested approximately $3 billion in grid modernization and resiliency initiatives under its current ownership.

That shows me they had a value creation plan, executed on it over time and are now ready for an exit. 

In terms of the value of this deal, Guru Focus puts it near $6 billion:

Macquarie Group (MCQEF) is edging closer to a potential exit from Louisiana utility Cleco Power, with a consortium led by Stonepeak Partners and Bernhard Capital Partners nearing a deal that could value the business between $5.75 billion and $6 billion, according to people familiar with the matter. A transaction could be announced as soon as Monday, although discussions remain private and subject to change. Cleco's ownership base also includes British Columbia Investment Management Corp. and Manulife Investment Management, while representatives for the involved parties have either declined to comment or not responded. 

Again, this is a great deal for all parties involved because Stonepeak Partners and Bernhard Capital Partners will help Cleco grow its business during its next growth phase. 

It also shows you that even in infrastructure, you sell assets when the time and conditions are right. 

Below, KALB Luisiana reports after almost a year of searching, Cleco now has a new owner.

Stephanie Ha of CTV News reports PM Carney announces Canada’s first national sovereign wealth fund: 

Prime Minister Mark Carney has announced Canada’s first national sovereign wealth fund, calling it the “Canada Strong Fund,” ahead of Tuesday’s spring economic update.

Carney officially made the announcement in Ottawa on Monday morning, saying it will allow Canadians who have “a bit of extra money” to invest into it directly, similar to a government bond.

The federal government will initially contribute $25 billion into the fund, which Carney says “will grow through asset recycling and reinvestment, creating even greater opportunities for future generations.”

A sovereign wealth fund is a state-owned investment fund that uses government surplus reserves to invest in financial assets like stocks and bonds but is independently managed. Alberta has its own sovereign wealth fund, called the Alberta Heritage Savings Trust Fund, that was established back in 1976.

According to Carney, the fund will be “professionally managed and operate as an arm’s length independent Crown corporation” and “will be accessible to everyone.”

The fund is also intended to complement and accelerate the work of existing institutions like the Business Development Bank of Canada and the advancement of projects through the Major Projects Office.

Whether a project is in Alberta, Quebec, or in the far north, high north, all Canadians will have a stake because this is about ensuring that you and your children and your children’s children benefit from the prosperity that we are creating today,” Carney later added.

Asked by reporters why a new agency is required, Carney said the Canadian Infrastructure Bank “provides debt” and “helps make projects possible,” while the new fund “comes in on a commercial basis” to get returns alongside the private sector.

Carney also said the fund will not be strictly investing in projects deemed in the national interest, as described under the Building Canada Act, and said “absolutely not” when asked if the fund signals that there is not enough private sector investment for projects.

“I don’t think that it will be that restricted, but it will be a focus on investing in Canada,” he said.

Speaking to reporters in Ottawa, Conservative Leader Pierre Poilievre criticized the Carney government for creating another agency.

“How many corporate welfare agencies do the Trudeau-Carney liberals need to create before they learn that it doesn’t work?” Poilievre said.

Finance minister says fund will take ‘months to set up’

Finance Minister François-Philippe Champagne says the fund will be up and running “in the coming months,” but did not provide a specific date when asked by reporters in Montreal on Monday.

“It will take, clearly, months to set up. But I think the fact that we are putting that as a pillar of our future growth, I think it’s an important message at an important time for Canadians,” Champagne said.

Pressed on how the fund will work for investors, Champagne said the federal government will “come back to the details.”

“The details of the funds, how it’s going to be, the liquidity. There’s a lot of very relevant questions you have,” Champagne said. “But I would say this would be for a later time when we have had the chance to have the consultation (with the industry).”

How does it differ from Norway?

Speaking to reporters, Carney compared the new fund to Norway’s Sovereign Wealth Fund, which has surpassed $2 trillion in assets.

While Norway’s fund invests its direct oil and gas revenues and has a strict, self-imposed cap on how much money the government can spend from it, the new Canadian fund is more domestically focused and funded by borrowed money.

Montreal Economic Institute economist Emmanuelle Faubert said there is a difference between the two funds.

“The Norwegian model is not funded on debt. Right now, we have increasing deficits. We have increasing debt, both federally and provincially, and the funding model in Norway might work better because it’s funded through surpluses,” Faubert said in an interview with CTV News.

“(Canada is) taking money that should instead go towards clearing deficits,” Faubert went on to say, later adding that the fund could be “a risky venture that might end up just costing money and giving nothing to Canadians.”

Sources say deficit will be smaller than projected

The announcement comes as Champagne is set to unveil the Carney government’s first spring economic update on Tuesday, and the new fund will be part of that update.

Two senior government sources tell CTV News that the deficit will be smaller than what was projected in the federal budget back in November, in part due to increased revenue from inflation and the price of oil.

While speaking to reporters, Carney emphasized that the government is “determined to get spending down” and admitted that “you can’t do everything at the same time.”

“In order for the numbers to be better, you have to be on top of them, and we’re on top of them,” Carney said, while adding that issues of affordability will be addressed.

Last fall’s federal budget forecasted a $78-billion deficit in 2025-26 and a $65-billion deficit for 2026-27, with the figure decreasing to $56.6 billion by 2029-30.

On Sunday, Poilievre wrote an open letter to the prime minister to cap the deficit at $31 billion and “present a plan to return to a balanced budget in the medium term.”

Asked by reporters on Monday about how long he thinks the government should take to eliminate the deficit, Poilievre would not give a specific target date.

“Let’s figure out how big a mess the Liberals have made, and then I can tell you how long it will take me to clean it up,” Poilievre said.

Pressed further to provide a target date, Poilievre said “it should be yesterday,” adding “they should have a balanced budget all the time, except for in massive national emergencies.”

Peter Zimonjic of CBC News also reports Carney announces creation of Canada's first national sovereign wealth fund:

Prime Minister Mark Carney has announced his plan to create Canada's first sovereign wealth fund.

The "Canada Strong Fund" will serve as an investment vehicle to finance major projects of national interest and will work in partnership with the private sector, Carney said in a video posted online.

Carney said in the video that Canadians will be able to contribute to and benefit from the fund, investing alongside the private sector and international partners.

"If you have a bit of extra money, we'll make it easy for you to invest in the fund to help build Canada strong for all," he said.

In a statement, the federal government said the fund will include projects in "clean and conventional energy, critical minerals, agriculture, and infrastructure."

At Monday's press conference at the Canadian Science and Technology Museum in Ottawa, Carney said the fund will begin with an initial endowment of $25 billion.

"Over time, the fund will grow through asset recycling and reinvestment, creating even greater opportunities for future generations," Carney said.

When asked where that $25 billion will come from considering Canada's fiscal situation, Carney said the Spring Economic Update on Tuesday will deliver news that Canada's finances are on a stronger footing than they were when Carney's government projected a $78.3-billion deficit for the fiscal year just ended.

"In order for the numbers to be better, you have to be on top of them, and we are on top of them," Carney said. 

The recent spike in the price of oil, due to the war between Iran and the United States and Israel, has boosted revenues in Canada's oil-producing provinces and in turn boosted how much revenue the federal government has collected. 

This time will be different, Carney says

Carney said the Canada Strong Fund will be managed by an arm's-length independent Crown corporation that will report to Parliament, and his government will spend the next few months consulting on "specific aspects of the fund."

Describing the fund as "essentially a national savings and investment account," Carney said the fund is being designed to "grow wealth for future generations."

"This will be a Government of Canada fund, but more importantly, this will be a people’s fund. It will be your fund," Carney said.

In order to allow people to contribute to the fund, the federal government will launch a "retail investment product" like a mutual fund or pension scheme where Canadians can buy into the fund and earn a dividend.

"This will give Canadians a direct stake in our nation’s long-term prosperity and help build long-term national wealth," the government said in a statement. 

Carney also said that like the Canadian Pacific Railway, the major projects his government is trying to get built will mostly be constructed by private companies.

Just like in the 1870s, Carney said "the federal government will support these projects through loans,  grants and other incentives."

Carney evoked the spirit of major infrastructure projects that defined Canada's history, but said the proposed plans would be different from things like the Canadian Pacific Railway, which was built by displacing Indigenous peoples from their land, where workers laboured under "appalling conditions" and the only people who benefitted from the projects were the companies that built them. 

Carney said Indigenous peoples will be full partners in the projects through equity stakes; that the projects being financed will be built by Canadians in "high-paying union jobs"; and because the government is investing in the fund, all Canadians, whether they invest directly or indirectly as taxpayers, will benefit.

Projects of national interest

Bill C-5, Carney's legislation to speed up approvals for major infrastructure projects identified as being "nation-building," passed through Parliament last June.

The second half of the bill, the Building Canada Act, enables the federal cabinet to pick projects, approve them upfront and override federal laws, environmental reviews and the permitting process.

The legislation speeds approval times from five years to two by introducing a "one project, one review" approach instead of having federal and provincial approval processes happen sequentially.

When he announced the MPO, Carney said it would "help structure and co-ordinate financing from the private sector, provincial and territorial partners" and the federal government to ensure taxpayers get value for money. 

Carney said the projects being financed through the fund will not be limited to ones of national interest, which have to meet certain benchmarks to get that classification.

"It wouldn't be restricted to that, in my judgement. We'll consult on the specifics of that, so it's a broader range than would be just specifically C-5," he said on Monday.  

Poilievre criticizes Carney for debt-financing fund

Conservative Leader Pierre Poilievre criticized Carney for using borrowed money to endow the Canada Strong Fund, saying countries need to have wealth for a wealth fund, but all Canada has is debt. 

"The investment exists, it comes from our country," Poilievre said. "It just can't get a return in our country. Putting another $25 billion on the national credit card to pad a Liberal slush fund will not change that."

Poilievre said projects in Canada are struggling to get funding and investment from the private sector because of onerous regulations and laws that frustrate development, not because of a shortage of cash.  

"If a project has a business case, why would the government need to fund it? If it doesn't have a business case, why would the government want to fund it?" Poilievre asked Monday.  

Uday Rana of Global News also reports Canada is getting a sovereign wealth fund, here is what we know so far:

Canada is getting its first sovereign wealth fund, Prime Minister Mark Carney said on Monday, with an initial endowment of $25 billion.

A sovereign wealth fund is a state-owned investment fund, that allows a government to invest in projects and investment opportunities across the world.

Carney described it as “essentially a national savings and investment account.”

Several countries around the world, from China and Norway to Australia and Saudi Arabia, have similar state-owned investment funds.

The Canada Strong Fund will “invest alongside the private sector in nation-building projects,” Carney said.

“We will begin with an initial endowment of $25 billion. Over time, the fund will grow through asset recycling and reinvestment, creating even greater opportunities for future generations,” he said.

Conservative Leader Pierre Polievre referred to the fund as a “slush fund.”

“Some of the countries around the world, you will note, have sovereign wealth funds. You need to have wealth for those funds. Norway, Singapore and Saudi Arabia run big budget surpluses, which they accumulate and then put into their sovereign wealth funds,” he said.

“Carney has no surplus and therefore, no wealth to put in such a fund. He’s talking about a sovereign debt fund,” Poilievre added.

The creation of a national sovereign wealth fund is “largely” a good initiative for the country, said Saskatchewan Premier Scott Moe.

“We need to have that environment to attract that economic investment, that private sector investment into our energy industry, into our industrial industries like mining, gas, helium, lithium and so on, as well as our agricultural industries and manufacturing industries,” he said.

However, when asked if such a fund would have an impact on provincial budgets if the federal government pulls oil and gas revenue to the fund, he pointed to questions of “provincial autonomy.”

“The development of our natural resources are the purview and the jurisdiction of the provinces,” he said.

What might the fund look like?

The idea of a government-run investment fund isn’t new, not even in Canada.

Alberta, for example, has the Alberta Heritage Savings Trust Fund, which reinvests a portion of the province’s resource revenues, particularly from the oil and gas sector. Quebec has the Caisse de dépôt et placement du Québec (CDPQ).

The Canada Pension Plan Investments is currently one of the largest institutional investors in the world, with over $780 billion in assets under its management globally.

“The really big question is how is this fundamentally different from what we’ve seen in the past?” said Jimmy Jean, chief economist at Desjardins.

“We’ve had a series of funds that haven’t really delivered, even though they were intended to do the exact same thing – get more investment and involve more private sector or major investors in major projects,” he added.

The Canada Infrastructure Bank, formed in 2017, was tasked with supporting infrastructure projects.

“We haven’t seen too much in terms of outcomes from that,” Jean said.

The plans for the fund will be included in the spring economic update on Tuesday, Carney’s office said.

The federal government said it will also establish a Canada Strong Fund transition office to “advance a targeted engagement with market participants and regulators,” the Prime Minister’s Office said.

Will a sovereign wealth fund work?

For private equity investors to choose Canada, the new sovereign wealth fund will need to guarantee targeted returns, said Concordia University economist Moshe Lander.

“Why would I want to invest my money in building some bridge in Canada when I can invest my money in some tech company in the U.S.? That’s where private capital is going to say ‘thanks, but no,’” he said.

The example of Alberta’s provincial fund would not be encouraging for many institutional investors, Lander added.

“They’ve (Alberta) massively mismanaged it. They use it as a rainy-day fund, rather than as some sort of generational fund. Any time something goes sideways in the province, which it inevitably does because it’s boom-and-bust cycle, they just go and grab the money,” he said.

Individual Canadians will be able to directly invest in the fund, Carney said, though it’s not yet clear how that proposal will work.

“If you have a little bit of extra money, we’ll make it easy for you to invest in the fund to help build Canada strong, for all,” he added.

Most of the major investment in big projects in Canada will still come from the private sector, he said, with the federal government providing support through loans, grants and other incentives.

The fund will be “professionally managed and operate as an arms-length, independent Crown corporation,” he said, adding that the government will be consulting over “specific aspects” of the fund.

Carney compared the fund to the building of the Canadian Pacific Railway in the 1870s, however, he said some things would be different.

“This time, we are building with Indigenous Peoples as full partners—ensuring meaningful Indigenous ownership and major economic benefits,” he said.

Some Indigenous groups, however, have expressed concern.

“At a minimum, there should be a clear policy standard: public funds must not be deployed in ways that infringe on Indigenous rights, title, or self-determination. Anything less signals that ‘sovereignty’ is conditional depending on who holds it,” said Gwii Lok’im Gibuu, co- director of the Skeena Watershed Coalition, in a statement.

Where would the money come from?

When asked where the money for the fund would come from given the size of the federal government’s deficit, Carney said there would be “good news” on that front during Tuesday’s spring economic statement.

The range of investments will be “very broad,” beyond just oil and gas, he said.

Managing oil revenue is a key aspect of Norway’s sovereign wealth fund, but Norway has a cap on how much of the fund’s spending comes from the oil sector. This is done to protect the broader Norwegian economy from the boom-and-bust cycles typically associated with the oil and gas sector.

This will be harder for Canada to do, given that resource revenue in Canada is not centralized, a report in the McGill Journal of Economics said earlier this month.

“The difference between Norway and Canada is Norway does not have provincial governments with nearly the power that we have in Canada,” Lander said.

“Any attempt to try and deal with the oil and gas industry at the federal level will instantaneously be met with pushback, of course, from Alberta, but also from Newfoundland and Labrador,” he added.

The federal government needs to ensure that Canadian investments are protected against the boom-and-bust of global oil shocks, said Sierra Club Canada.

“We’re awaiting more specifics, but we are concerned that the fund is effectively a way to misleadingly ‘re-brand’ public investment and backing for a west coast oil pipeline and new LNG projects: projects that have no business case as the world moves rapidly to renewable energy,” says Conor Curtis, director of communications at Sierra Club Canada, said.

The focus of the fund will be on investing within Canada, Carney said, as Canada takes “a lesson from other jurisdictions that had the foresight many decades ago to start sovereign wealth funds.”

“In some cases, they began with a domestic focus. Then outgrew the scale of the domestic focus,” he said, pointing to the state-owned private investment fund Temasek Holdings in Singapore.

When it was founded in 1974, Temasek made largely domestic investments in Singapore. Recently, however, it has broadened its scope with global investments.

The “uniqueness” of Canada’s sovereign wealth fund – as opposed to the ones that Nordic countries like Norway have – will be the ability of everyday Canadians to put money in the fund, Finance Minister Francois-Phillipe Champagne said.

“We’re looking at best practices to really set something which would be uniquely Canadian, inspired by best practices in the G7,” Champagne said, speaking to reporters shortly after Carney.

However, this could mean that many Canadians will be left out of the returns, some economists warn.

“In order just to actually allocate funds to allocate your money as an individual to an investment fund, you need to have spare cash lying around. And the reality is that not everyone has that spare cash lying around,” said Paul Calluzzo, associate professor at Queen’s University’s Smith School of Business.

The silver lining for the government’s new fund might come in the form of the momentum around the Buy Canadian movement and surge of patriotism, Calluzzo added.

“It’s hard to think of a geopolitical time that’s more favorable to investing in Canadian infrastructure than right now,” he added.

You can read more about the Canada Strong Fund on the federal government's website here.

I note this part:

We are Building Canada Strong—and the Canada Strong Fund is designed to take that effort even further. The government intends to offer Canadians the opportunity to participate directly in the Fund through a new, retail investment product.

This means that any Canadian who wishes to can invest some of their savings into the Canada Strong Fund.

The government intends to consult on the specific design of this product, but Canadians can expect the following features:

• Broadly accessible to Canadians from coast to coast to coast;
• Easy and simple to purchase, hold, and transact;
• As the Canada Strong Fund succeeds, investors will be able to share in the upside, while their initial invested capital will be protected.

When Canadians invest directly in the Canada Strong Fund, they will help fuel its growth and increase its ability to deliver meaningful benefits across the country. 

Alright, let's get to it.

Mark Carney's government is setting up Canada's first sovereign wealth fund and calling it the Canada Strong Fund. 

The Fund will be an independent Crown corporation and operate at arm's length from the government, similar to CPP Investments and PSP Investments. 

It will have an initial endowment of $25 billion with a principal objective to create wealth for future generations. 

The Fund is in the process of being formed and it will likely start operations within the next three months and be fully operational when CPP Investments and PSP Investments host the Canada Investment Summit in mid-September (they look stupid if it's not up and running by then).

So who's going to be the inaugural CEO of the Canada Strong Fund?

There are several contenders starting with Mark Wiseman, who was recently appointed Ambassador of Canada to the United States and was formerly CEO of CPP Investments and Chair at AIMCo; Evan Siddall, former CEO of AIMCo and close friend of Mark Wiseman; Neil Cunningham, former CEO of PSP Investments; and Macky Tall, Chair of the Canada Infrastructure Bank and former Head of Liquid Markets and Infrastructure at CDPQ when Michael Sabia was CEO of that organization. 

Speaking of Sabia, my money is on him being the inaugural Chair of the Canada Strong Fund, and if that happens, Macky Tall's chances increase significantly to lead the new fund.

Of course, all this is conjecture, but as the late George Carlin once remarked: "It's a Big Club; you and I aren't part of the Big Club."

And don't kid yourselves, everything is already in place, they are hashing out the details but I guarantee you Carney, Sabia, Wiseman, Blanchard and company have discussed this new fund and they already know who the new leader will be.

Yes, it will operate at arm's length from the government, but you'd be really stupid if you think the government isn't going to have a say on how this fund operates and who will be appointed its leader.

Canada is really good with what I call the "illusion of independent governance"; in reality, the governments have a lot more say than you think -- and that goes for all Crown corporations.

What about female leaders? There are plenty of qualified women who can do the job but I wouldn't be betting on them to be the inaugural CEO.

Now, what exactly will this new fund be doing? Those details remain to be hashed out.

The key passage in the CBC article is this:

Bill C-5, Carney's legislation to speed up approvals for major infrastructure projects identified as being "nation-building," passed through Parliament last June.

The second half of the bill, the Building Canada Act, enables the federal cabinet to pick projects, approve them upfront and override federal laws, environmental reviews and the permitting process.

The legislation speeds approval times from five years to two by introducing a "one project, one review" approach instead of having federal and provincial approval processes happen sequentially.

If the federal government wants to really speed up major projects, it has to ram them through without delay but my close friends who know Ottawa well anticipate major lawsuits ahead (funded by left-wing and right-wing special interest groups).

The Trudeau Liberals really did a number on this country, causing irreparable harm and they put in ridiculous legislation to ensure nobody tampers with their asinine policies.

Lastly, the Canada Strong Fund will have and has nothing really in common with Norway's giant sovereign wealth fund.

It will never be as big or close to it, it will have a more domestic investment angle and it will never match its transparency or governance, that I can assure you of.

Do we really need this new wealth fund? Why can't CPP Investments take care of this mandate just like PSP Investments is taking care of the Canada Growth Fund?  

That's a really good question as is how exactly this new fund will be funded since we don't generate the wealth that Norway does (again, thank the Trudeau Liberals and their asinine "keep it in the ground" policies). 

I'm willing to give Mark Carney and his entourage the benefit of the doubt but I remain somewhat skeptical and cynical. 

One thing is for sure: this Canada Strong Fund better not flop like the Canada Infrastructure Bank.

Personally, I want to see it succeed so my child and future generations benefit from it.

But I'm too old and cynical, it's part of my Greek DNA, so forgive me if I'm not enthusiastic about it.

Having said this, it does irritate me when I hear people saying "Carney set this up to be a slush fund for Brookfield."

Brookfield is one of the best alternative investment funds in the world and doesn't need the Canada Strong Fund, more like the other way around (people are so stupid).

Let me wrap it up there.

Below, Prime Minister Mark Carney discusses the Canada Strong Fund and what its objective is.

Like I said, I wish them much success and if Carney, Blanchard, Sabia and Wiseman want my expert insights on setting this up right and getting the governance right, they know where to find me (won't be holding my breath).

Sean Conlon and Lisa Kailai Han of CNBC report the S&P 500, Nasdaq close at records, boosted by Intel, as investors hope for a restart to U.S.-Iran talks:

The S&P 500 and Nasdaq Composite closed at record levels on Friday after investors were given a hopeful sign that peace talks between the U.S. and Iran would soon take place in Pakistan.

The broad market index finished up 0.8% at 7,165.08, while the tech-heavy Nasdaq added 1.63% to settle at 24,836.60. Both indexes also scored fresh all-time intraday highs. However, the Dow Jones Industrial Average fell 79.61 points, or 0.16%, to end the at 49,230.71.

MS NOW reported, citing a Pakistani official, that Iranian Foreign Minister Abbas Araghchi is expected to arrive in Islamabad on Friday evening to have a discussion with Pakistani mediators about a possible second round of negotiations with the U.S.

U.S. oil prices pulled back following the development. U.S. West Texas Intermediate futures settled above $94 per barrel after falling 1.51%. Meanwhile, international benchmark Brent crude futures closed marginally higher at above $105 a barrel.

This comes on the heels of President Donald Trump announcing Thursday that Israel and Lebanon agreed to extend their ceasefire by three weeks. The announcement followed a meeting at the White House with top U.S. officials, Trump said.

“The Meeting went very well!” the president wrote in a Truth Social post. “The United States is going to work with Lebanon in order to help it protect itself from Hezbollah,” he added, referencing the Iran-backed militia group.

The Middle East conflict has evolved into a naval standoff over the Strait of Hormuz as the U.S. and Iran have seized commercial ships. Trump said in a Truth Social post on Thursday that he had ordered the U.S. Navy to “shoot and kill any boat” that is laying mines in the strait.

Robert Conzo, chief executive officer at The Wealth Alliance, believes that regardless of what happens in Islamabad, the market is “almost setting [the conflict] aside and looking right through it,” though headlines coming from the Middle East still can sway the market given Thursday’s reversal from all-time highs for the S&P 500 and Nasdaq.

Because of Trump’s promotion of a short timeline for the conflict, the historically temporary nature of oil supply shocks and a strong start to earnings season, among other factors, the market has become resilient in the face of the war, Conzo noted.

“What it’s basically doing is saying, ‘Okay, these are more short-term things or maybe it’s a lot more talk than what’s really going on, and we’re going to, to set it over here, get back to fundamentals,’” he said. ”[Investors] feel good about those fundamentals, specifically in the United States, and that’s what’s really making the market grind higher.”

The move higher in S&P 500 on Friday was supported by Intel shares, which soared 23.6% to log its best daily gain since October 1987. The chipmaker posted first-quarter earnings that beat Wall Street’s expectations and shared an upbeat forecast for its current quarter.

That adds to the rally semiconductor stocks have seen this week. On Friday, the iShares Semiconductor ETF (SOXX) posted its 18th positive session in a row and ended the week with an 11% gain.

For the three major averages, however, the week was mixed. The S&P 500 ended the period up about 0.6%, while the Dow recorded a 0.4% decline. The Nasdaq rose 1.5% this week. 

Rian Howlett   and Karen Friar of Yahoo Finance also report the S&P 500, Nasdaq close at record highs as Nvidia retakes $5 trillion mark, Intel finally tops 2000 peak:

US stocks diverged on Friday as semiconductor stocks powered to new highs and the Department of Justice dropped its criminal investigation into Fed Chair Jerome Powell.

The tech-heavy Nasdaq Composite climbed 1.6% to a fresh record as the semiconductor index extended gains for the 18th day in a row.

The S&P 500 added 0.8% to close at a record. Meanwhile, the Dow Jones Industrial Average slipped 0.2% following a losing day for Wall Street stocks.

Tech equities surged as shares of Intel (INTC) jumped to a record high, surpassing their level from the year 2000. The chip giant’s strong outlook and first quarter profit beat was a sign of renewed optimism around the AI trade. Nvidia (NVDA) also closed at a record, re-taking the $5 trillion market cap crown.

Stocks also gained after the DOJ announced it would drop its criminal probe into Chair Powell, potentially clearing the way for the confirmation of President Trump’s pick to lead the Fed, Kevin Warsh.

Meanwhile, the White House indicated President Trump will send special envoy Steve Witkoff and his son-in-law Jared Kushner to Pakistan this weekend for peace talks.

Oil prices edged lower as concerns about a supply squeeze persisted, as tensions around the Strait of Hormuz remain high. Brent crude futures dipped below $100 a barrel, and West Texas Intermediate futures slipped to $95 a barrel.

On the economic data, consumer sentiment improved in April but remained at record lows.

Ines Ferré of Yahoo Finance adds the S&P 500, Nasdaq touch fresh records as semiconductor stocks soar:

The S&P 500 and the tech-heavy Nasdaq Composite hit record highs on Friday on the heels of Intel's (INTC) blockbuster quarter and earnings guidance, giving renewed optimism to the AI trade.

The Philadelphia Semiconductor Index rose for its 18th day in a row, with Nvidia (NVDA) hitting the $5 trillion market cap. Meanwhile, the Dow Jones Industrial Average declined 0.2%.

A DOJ investigation into Fed Chair Jerome Powell was dropped on Friday, raising the odds that President Trump’s nominee for the position, Kevin Warsh, will be cleared by Congress.

Markets also rose amid hopes that the US and Iran would restart talks.

Semiconductor stocks notch 18 days of wins

Semiconductors have been the driver of all-time highs in the S&P 500 and the Nasdaq, with an impressive run.

Bespoke Investments noted on Friday that the Philadelphia Semiconductor Index has risen for 18 sessions in a row, since March 30th.

It hasn’t had a down day all month.

“Using the tradable VanEck Semiconductor ETF (SMH) as a proxy, the group is now up right around 40% since then, which is a record 18-day rally since its inception,” said the note.

Given that the S&P 500 is market-cap weighted, semis are the single-largest weight in any industry group. In fact, the group accounts for 15.5% of the S&P 500 weight.

“So with a combination of massive outperformance and a massively large weight, the semiconductors are to thank for 4.9 percentage points of the index’s 12.8% rally since March 30th, meaning they’ve accounted for roughly 40% of the gain,” said the note. 

It's Friday, time to talk shop and cover the US stock market (my favourite thing to do).

This week is all about those red-hot semis driving the Nasdaq and S&P 500 to record highs.

Have a look at the top-performing US large cap stocks today, dominated by semis (full list here):

Intel (INTC), Arm Holdings (ARM), Advanced Micro Devices (AMD), Rambus (RMBS), Qualcomm (QCOM) all surged higher today. 

Amazingly, Intel just cleared its dot-com-era ceiling after earnings and just smoked short sellers today (it was a buy since David Tepper loaded up at $25 a share, I covered it in my top funds’ activity comments):

 

You can say the same thing about the VanEck Semiconductor ETF (SMH), up 5% today and close to 30% over the past month, led by Nvidia and Taiwan Semiconductor which make up 20% and 12% respectively of this index (Broadcom another 8%):

So, Nvidia market cap back above $5T, Alphabet to invest $40B in Anthropic, tech stocks are booming, led by semis once again.

Those weekly up candles above tell me hedge funds, quant funds and CTAs are driving the bulk of the flows, and while I wouldn't chase them here, I certainly wouldn't short these stocks here, that's a surefire way to lose money.

As far as software stocks, they have recovered a bit but continue to struggle this year:

Today on LinkedIn, Bruce Richards, CEO and Chairman of Marathon Asset Management, posted this:

Has the Software Default Cycle Begun?

One of the largest and smartest private equity managers appears to be handing the keys over to creditors, two years before its scheduled debt maturity; potentially writing off $5.1 billion, or 100% of its equity investment.

This would be the largest private credit default ever, with $3 billion in debt outstanding and owners apparently choosing not to repay principal, instead turning its equity position over to creditors.

Some are calling it a “restructuring,” and for good reason: keeping the company out of Chapter 11 is essential to preserve value. In bankruptcy, software customers grow reticent to stay with a “bankrupt” vendor. A formal filing risks real destabilization since CIOs and CTOs become keenly aware of the risk associated with a software company that may not apply the resources to provide upgrades and essential services, leading to a natural degradation of enterprise value.

Pluralsight had a similar outcome, with $3.5 billion of equity wiped out, as the sponsor turned ownership of the company to its creditors, impairing $1.5 billion in private credit for this software company.

The majority of private credit software defaults, restructurings, and bankruptcies will likely occur in the 2027–2029 timeframe. M3 Partners, with deep industry and restructuring expertise, illustrates the maturity risk of software companies within private credit, data that suggests significant risk as we get closer to the “Maturity Wall” (chart below).

This is not the canary in the coal mine. It is one of the first of many software dominoes that will begin to fall as we enter SaaS-pocalypse.

While I don’t believe that SaaS-pocalypse will create systemic risk to the broader credit markets or the economy, it is becoming increasingly difficult to deny that existential risk has now arrived for many cohorts within the software sector itself. Creative destruction has arrived. To survive, software companies must become AI-first.

Creditors operating in this environment prioritize one thing above all: preserving capital. Yet many assume their software positions are secure, their mindset of a state of denial must be adjusted as it is painful to admit to a massive mistake that cannot be fixed.

Did you get this part: "This is not the canary in the coal mine. It is one of the first of many software dominoes that will begin to fall as we enter SaaS-pocalypse."

Now, it's possible Bruce Richards is talking up his book but what if he's right and  SaaS-pocalypse is just beginning?

Moreover, 20,000 job cuts at Meta, Microsoft are raising concerns that AI-driven labor crisis is here.

A lot of moving parts to this economy and I haven't even discussed geopolitics. 

One thing is for sure, investors are plowing into semis betting on AI, data centers and ignoring any fallout from Iran or any other concerns.

There is a bit of complacency setting in here, markets are ignoring Iran, for now.

Anyway, an eventful week, so let me end with the chart of the week: 

Shares of Avis Budget group (CAR) shot up to $847 earlier this week in what looked to be the Mother-of-all short squeezes but then plunged to close the week at $204. 

Absolutely insane price action.

Speaking of insane, the Montreal Canadiens are in overtime again versus Tampa Bay Lightning.

Time to enjoy some hockey and my weekend.

Below, Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. 

Today's guests are Goldman Sachs’ Peter Oppenheimer, Brookings Vice President Ben Harris, D. A. Davidson’s Gil Luria, Vantagescore CEO Silvio Tavares, Interactive Brokers’ Steve Sosnick, 248 Ventures’ Lindsey Bell, Pipeline CEO Katica Roy, Former Federal Reserve Governor Betsy Duke, University of Chicago’s Damon Jones, & Matternet CEO Andreas Raptopoulos.

Also, Dan Niles, founder and protfolio manager at Niles Investment Management, joins 'Squawk on the Street' to discuss Intel's latest earnings report, the impacts of agentic artificial intelligence, and more.

Third, Retired Navy Admiral William McRaven joins 'Squawk Box' to discuss the latest developments in the Iran war, state of U.S.-Iran peace talks, what a potential endgame could look like, takeaways from his new book 'Duty, Honor, Country and Life', and more.

Lastly, Robert Pape, Professor of International Relations at the University of Chicago, joins Rhiannon Jones on TRT World from the United States to assess escalating tensions between Washington and Tehran.

As both sides ramp up military presence and rhetoric, Pape examines the risk of further escalation and whether the situation is heading toward a prolonged standoff. He also discusses the role of mistrust in stalled diplomacy, internal dynamics within Iran’s leadership, and whether there is any realistic path toward de-escalation.

Layan Odeh of Bloomberg reports CAAT Pension Plan earns 8.4% as stock gains outweigh weak PE returns:

CAAT Pension Plan earned 8.4% last year as buoyant stock performance outweighed soft returns in the fund’s private market portfolio. 

The gains, which pushed assets to C$25.4 billion ($18.6 billion), were below the benchmark of 11.2%. That was driven “almost entirely” by the pension plan’s private equity allocation, which returned 1.5% compared to its benchmark of 19.6%, according to CAAT’s annual report published Thursday. 

Public equity holdings gained 21.7% in 2025, while credit and real assets returned 3.7% and 4.1%, respectively. 

Private markets suffered from constrained liquidity and subdued deal activity last year as higher interest rates and macroeconomic uncertainty weighed on investor sentiment and valuations, the Toronto-based pension plan said in the report. 

The pension plan is “modestly” exposed to software companies affected by advancements in artificial intelligence across its private equity and credit holdings, Chief Investment Officer Kevin Fahey said in an interview, adding that the exposure won’t be a “significant headwind in either portfolio.”

CAAT plans to allocate capital to real assets this year as it remains underweight its target mix, said Fahey, who is also acting chief executive officer. “We have some work to do specifically in that space, and that will come out of a combination of the public equity and fixed income markets.” 

The softer US dollar also hurt CAAT’s returns last year. Canadian pension funds are among the largest holders of US assets in the world, and are vulnerable to a weaker greenback.

CAAT, which serves more than 850 employers in 20 industries, has been dealing with internal tension in recent months. 

The board of trustees launched an independent review after a controversial payment to the then-chief executive officer exposed broader concerns about governance, board oversight and workplace conduct.

CEO Derek Dobson exited the fund in March after being placed on leave amid concerns over C$1.6 million he received for unused vacation time. Three of the pension plan’s senior executives had approached the board in November with concerns over that payout and a relationship between Dobson and another CAAT employee.

CAAT made Fahey acting CEO after Dobson went on leave. The board is focused on appointing a permanent CEO, according to the annual report. 

“CAAT’s independent governance review is now in its final stages,” the pension plan said in a statement.

Fahey said he’s confident in CAAT’s ability to maintain a long-term focus for its members. “We’re going to do a good job setting up our next CEO for success,” he said.  

Earlier today, CAAT Pension Plan issued a press release stating it delivered strong 10-year returns, reinforcing long-term stability for members and participating employers:

Toronto, April 23, 2026 – The CAAT Pension Plan announced strong investment results in its 2025 Annual Report, underscoring a decade of solid performance and funding health. Over the past 10 years, the Plan has delivered an annualized net return of 9.6% supported by a one-year net return of 8.4% in 2025.

“CAAT’s investment program continues to deliver long-term returns that promote Plan health,” said Kevin Fahey, Acting CEO and Plan Manager and Chief Investment Officer. “Our 2025 results only add to my confidence in the Fund. Our 10-year annualized net return significantly outperformed CAAT’s policy benchmark and discount rate, which reflects the long-term rate of return required to make the Plan sustainable.”

Stability

On January 1, 2026, the CAAT Pension Plan’s assets were $25.4 billion with a funding reserve of $6.7 billion, up from $23.3 billion and $6.1 billion, respectively, the previous year. The Plan is 124% funded, meaning CAAT holds $1.24 in assets for every dollar of pension obligations - a strong indicator of benefit security and long-term sustainability for members.

Predictable income, meaningful benefits

CAAT provides beneficiaries with predictable lifetime income in their retirement. In 2025, the Plan paid more than $760 million to pensioners.

CAAT’s strong funded position directly translates into meaningful benefits for its members and participating employers. For instance, in 2025, the Plan extended its conditional inflation protection for eligible members to 2028, helping preserve the purchasing power of their pensions over time. CAAT has granted this enhancement every year since its introduction in 2007. CAAT also enhanced survivor benefits by increasing the minimum payment guarantee from 60 times to 180 times a member’s first monthly pension amount and by introducing a 100% survivor pension option.

Two previously announced initiatives strengthened the value of Plan participation. CAAT increased the annual pension factor to help DBplus members build retirement income faster without contributing more to the Plan. It also lowered the contribution rate for DBprime members while leaving benefit entitlements unchanged. For employers, these enhancements reinforce a competitive total rewards offering and demonstrate the value Canadians place on workplace pensions as a foundation for financial well-being.

An enduring promise

While many of the forces that shaped the economy over the past 50 years including globalization, declining interest rates and low, stable inflation may have run their course, Mr. Fahey says “the resilience of CAAT’s investment program enables the Fund to withstand periods of volatility and adapt to market conditions in the short-term to manage risk and take advantage of opportunities. As such, broader challenges in any given sector or the economy do not impact the ability of the Plan to pay pensions now or in the future.”

About CAAT Pension Plan

Established in 1967, the CAAT Pension Plan is an independent, jointly governed plan that offers highly desirable modern defined benefit pensions. Originally created to support the Ontario college system, the CAAT Plan now proudly serves more than 850 participating employers in 20 industries, including the for-profit, non-profit, and broader public sectors. It currently has more than 125,000 members. The CAAT Plan is respected for its pension and investment management expertise and focus on stability and benefit security. On January 1, 2026, the Plan was 124% funded on a going-concern basis. 

This morning, I had a discussion with CAAT Pension Plan's acting CEO and Plan Manager and CIO, Kevin Fahey, to go over their 2025 results.

Before I get to my discussion with Kevin, I'd like to go over some items from the annual report which you can download here. 

First, a message from Chair Audrey Wubbenhorst and Vice-Chair Janet Greenwood:

 

I note the following:

Strong governance is the foundation of trust in and long-term security of the CAAT Pension Plan. It is reinforced by the Board’s commitment to continuous improvement, disciplined oversight and a willingness to act decisively in the best interests of Plan beneficiaries.

To this end, the Board initiated a comprehensive review to evaluate the Plan’s governance framework against evolving best practices. This work included consideration of governance-related matters brought to the Board’s attention. To ensure objectivity, an independent expert was engaged to conduct the review. Based on the findings, the Board will identify targeted areas for enhancement and develop a set of actions to ensure CAAT’s governance continues to support the long-term success of the Plan.

A fundamental role for the Board is to provide oversight and counsel to keep CAAT focused on its strategy and the beneficiaries’ long-term interests, including maintaining continuity in leadership and decision-making during transitions. At the outset of CAAT’s current transition, the Board appointed Kevin Fahey as Acting Chief Executive Officer to ensure stability in leadership and operations. With leadership continuity in place, the Board is now focused on appointing a permanent CEO. 

Basically, the Board is doing its job properly, appointed an independent expert to make recommendations on how they can improve their governance, and the findings of this independent review will be made public when completed.

Next, a message from the Acting CEO and Plan Manager and CIO, Kevin Fahey: 

 

 

I note the following:

CAAT’s investment program is designed to turn contributions from members and employers into predictable retirement income for life. Our focus on long-term performance strengthens the funding position and overall health of the Plan. In 2025, CAAT achieved a 10-year annualized net rate of return of 9.6%, supported by an annual net return of 8.4%.

Today, our $25.4 billion fund is diversified across asset classes to achieve our targeted rate of return while helping mitigate market volatility and adverse economic conditions. CAAT’s $6.7 billion surplus – built through years of disciplined investing and risk management – also serves as a stabilizing force.

On a going concern basis, the Plan is 124% funded, meaning CAAT holds $1.24 in assets for every dollar of pension obligations. That is a strong indicator that members’ benefits are secure and the Plan is sustainable.

Strong funding enables tangible day-to-day value for members and employers. These  outcomes are guided by our Funding Policy, which establishes clear guardrails for contributions, reserves and benefit decisions.  

It is important to note that despite the governance issues the Plan has faced recently, it remains one of the best -- if not, the best — funded Plan in Canada. 

Next, a Q&A with Kevin Fahey which is definitely worth reading: 

 

I note the following:

You were appointed as Chief Investment Officer in January 2026. How are you approaching this new role?

CAAT’s investment strategy has delivered strong performance over the long term, and as such, I see no need to change an approach that continues to be effective. It’s a reflection of the incredibly talented and dedicated teams that oversee our investment program – many of whom I have worked alongside for years. Not only do they have the expertise and discipline to manage the Fund, they care deeply about the role it plays in supporting CAAT’s purpose. That unique mix of skill set and passion is fundamental in sustaining our investment goals well into the future.

In terms of CAAT’s performance in 2025, what do you want members to know?

Overall, our investment program delivered a strong performance in 2025. The fund’s 8.4% rate of return surpassed what we required on an annual and 10-year basis to enhance the long-term health of the Plan. For every dollar of pension obligations, CAAT has $1.24 in assets. The bottom line is, members can feel confident their pension is secure.

Putting the annual performance aside, your team places greater importance on long-term returns. Why?

I’ll give you an example related to the Plan’s enhancements in 2025. CAAT increased
the annual pension factor to help DBplus members build retirement income faster without contributing more to the Plan. We also lowered the contribution rate of DBprime members while keeping the same pension promise. Many factors go into these decisions, but they were made possible by the Fund’s status. And that’s a reflection of the success our investment program has had over the course of 10 to 15 years.  

The key thing here is following the departure of former CIO Asif Haque, the strategy isn't changing and the funding status remains solid because long-term returns are strong.

Alright, let me get to the key highlights for 2025:

 And here is CAAT Pension Plan's asset mix at the end of last year:

As you can see, Public equity (30%), Nominal Bonds (12%), Inflation-linked bonds (5%) and commodities (3%) make up 51% of the portfolio with Credit (8%), that moves to 59%. 

Real assets (25%) and private equity (17%) make up 37% of the portfolio.

Given the tilt toward public markets, I wasn't surprised the overall performance of 8.4% was strong as Public equity had an exceptional year:

Also worth noting, returns in private markets were muted but better than many of their larger peers.

What else? Like its peers, the Plan underperformed its benchmark last year and the issues were in private equity which has a public market benchmark that soared last year:

 

The key thing here is that over the last 5 and 10 years, CAAT Pension Plan has outperformed its benchmark.

Discussion With CAAT Acting CEO and Plan Manager and CIO Kevin Fahey

Let me get right into my discussion with Kevn Fahey.

I want to thank Kevin for taking the time to call me earlier and also thank Stephen  Hewitt and Erin Hamilton for scheduling the call and sending me material on an embargoed basis.

Kevin began by giving me an overview of the results:

I think the engine, clearly, last year, was the public market piece. There were great tailwinds in the form of just a good global markets generally, because our index was up 16.6% and we ended up 21.7%. And that's on the back of, on the public market side, value add from our long-only managers. But also, we have, as you might have read the report, or might have known, historically, we do have a program where we port hedge funds on top of our public portfolio, and there was a lot of value that came out of that piece as well. 

The obvious headwind was what we saw in private equity from a relative value perspective, at least benchmark. Although even in that space, we were above zero and, frankly, within shouting distance or above and below most of our peers. So it's not like I'm looking at private equity saying: "Wow, they really didn't perform well." We were on the same ride as everybody during the year, and the other asset classes were a little more sort of benign, whether it be nominal bonds or the TIPs portfolio. You know, neither one had a huge impact. I know it was the story of the equity bit. 

I noted the 510 basis points outperformance in Public Equity was quite impressive and asked Kevin whether the portable alpha strategy they use there to invest in external hedge funds is roughly 10% of assets.

He replied:

We don't report on leverage levels, specifically Leo. Your impressions, though, are not misplaced. I would say just to be clear, the impact of the leverage that comes with a portable alpha strategy is something that we do in addition to the strategy itself, and the managers that we put in the portfolio are really conscious of the potential impacts of leverage, and the knock-on effect from a liquidity perspective, and we're very comfortable that our leverage is modest at the plan level. 

It may be the case that they use "modest leverage", but just to be clear, no other peer group outperformed its Public Equity benchmark by 510 basis points last year or anywhere close to that, and they all invest in external hedge funds as well.

The reason? Other funds report absolute return activities separately, and they report their leverage level, whether or not it's moderate.

If CAAT Pension Plan is mixing portable alpha with their long-only equities and calling it added value, then their benchmark needs a premium to reflect leverage and a T-bill hurdle.

That's not to take away from their portable alpha strategy which delivered exceptional returns last year. I'm just stating how it needs to be properly reported separately (you measure beta with beta and alpha with alpha and if you mix them up, your benchmark has to reflect this and a premium should be added to it).

Alright, we moved on to private markets where I asked Kevin to give me some more flavour on private equity, infrastructure and real estate.

He replied:

I'll try and do a fly by those categories because there are new ones. What I would say that prevails across the peak is that we try and pick great GPs globally, across the strategies, and leverage as much co-investment alongside those GPs as we can. 

I think we've been pretty careful in varying degrees, quite frankly. In infrastructure, a lot of the portfolio is in co-invest in direct and in descending order, private equity, an order of magnitude lower, although it's still a significant portion of that portfolio.

Real Estate, even lower again, just by virtue of where our journey had been in that class. We were, for a very long time focused on open-ended funds, and we've more recently, started diversifying that strategy to closed-end GPs, and have started to attract more co-invest deal flow, so that will grow over time.

And in private credit, given the duration of those investments and the return profile we have not, and the relative newness of that portfolio, and frankly, the co-investments we see in private credit would be relatively small inside. We've not been active in co-investing in that space. So, private credit, we are not active co-investors at this point. 

And from a strategy perspective, all four of the asset classes, private equity, private credit, real estate and infrastructure, all global in nature, funds and co-investments (in three of them). Private equity, the portfolio more mid-market focused, I would argue, and infrastructure we're diversified across the cap spectrum. Although in recent years, we've tried to make a more concerted effort to go down into more mid-market space. We're seeing more mid-market deal flow, because honestly, some of the GPs that we hired many years ago, have drifted into the large cap space. And while they've been good partners from a diversification perspective and from wanting to be known that we are still important to that GP as we would be, we've sort of certified and gone more down market, and we've seen success in that, particularly in attracting co-investment deal flow in real estate, as I noted, we have more recently started. 

We are global on that side, not much Asia on the private market side, which is where, basically where all our real estate comes from but certainly well diversified, diversified across North America and Europe in real estate, and starting to see a lot more and more, probably minute small market there. We're starting to see co-investment deal flow that we've been executing on in that base and private credit, it's also a global program, but mostly North America and Europe, and again, not a lot co-investment in that portfolio at this point, and it's still in relatively early stages. 

I asked him if the split between fund investment and co-investments is 60/40 and he replied:

We don't disclose that publicly, but I say that across real estate, or, sorry, across infrastructure and private equity on an aggregate basis, Leo, you're within shouting distance with that number. 

He added that co-investments are a "huge driver of their long-term success" and CAAT Pension Plan wants to remain a strategic partner of choice to top GPs in the areas they invest in.

I also asked him, with the markets being so volatile this year, how does he manage to be Acting CEO and CIO? He replied: 

No, I don't feel overwhelmed. Leo, I would say, at good fortune, as did Asif and Julie before him, for many years to be surrounded by a really good team. 

The team has, over the last few years, has grown out significantly. We've got 20 on the investment side, which wouldn't have been the case a decade ago under Julie's stewardship. 

We're well served by having built really deep bench strength, and that has been a tremendous support to me, as you might imagine.

In recent months, I have been very busy, but it's not like my eye is off the CIO ball. Everything that's coming forward, I'm spending time with, whether it be Razvan Tonea who's heading the public market side, or Adam Buzanis who's heading the private market side. I'm still in regular dialogue with them. 

I would say, honestly, I'm dealing with it by spending more hours a day working. So my work days are longer than they used to be.

Lastly, since Kevin is a private markets experts, i asked him how he sees things going forward and whether he is concerned something structural is going on there.

He replied: 

I think that's a very reasonable question. As you know, that 2021 inflection point, a lot of us investing in private equity for call it a decade plus, that portion of the portfolio that was invested in the late teens and up to 2021 is definitely, with returns recently, and we're no different on that front, though. 

But these things, as you're likely aware are very end date sensitive. So to the extent that our numbers relative to benchmark in 2025 were not spectacular, look back three or four years ago, and granted, the impact of some of the teen stuff wouldn't have weighed on us at that point, but our numbers look fantastic when you look back. 

We think things are cyclical, and that's why it is important for us to sort of maintain our focus on the long-term plan level. But even in private markets, because our private equity return over the last 10 years is certainly very strong. 

Kevin is right, over a longer period, private equity portfolio at CAAT and other large Canadian pension funds has performed exceptionally well. 

We left it off there, I once again want to thank Kevin for taking some time to cover CAAT pension Plan's 2025 results with me and recommend you all read the annual report here (it is very well written).

I also want give Asif Haque the credit he deserves for CAAT Pension Plan's strong performance last year.

It sure was a strange few months at CAAT Pension Plan, but I remain confident the Plan is on more solid footing now, and I agree with Kevin, there's solid bench strength there nowadays. 

Below,  a guide to CAAT's "My Pension" portal and how members can use it.

BCI recently released some insights from its 2026 Investor Day:

Earlier this year, at BCI’s Investor Day, our asset class heads faced a deceptively simple challenge: tell clients what’s happening now in their programs, and what they think is coming next. No hedging, no caveats.

These are the experts who live and breathe these markets every day, building investment strategies to serve BCI’s clients. What followed were candid, informed perspectives from the people who know these markets best.

All figures reflect data as at February 2026 unless otherwise noted. 

Capital Markets & Credit Investments

“Deliberate credit selection, as opposed to broad market exposure, is where long-term value is created within private credit. You don’t just go out and buy a slice of the market—if you do that, you face very tight credit spreads and poor credit selection. Since the portfolio’s inception in 2018, our focus has been on the quality of the portfolio, across geographies, structures, and market cycles, a discipline that positions us well in this market and is reflected in the returns we deliver for our clients.”

– Daniel Garant, EVP & Global Head, Capital Markets & Credit Investments

 A crowded credit market 

BCI has been active in private credit since the portfolio launched in 2018. Over that period, the asset class has evolved considerably, growing in scale, sophistication, and the breadth of opportunities it offers investors.

With that growth has come increased competition, particularly in the US, where a large volume of capital has led to an increasingly competitive market, compressing the extra return or spread that lenders earn for taking on credit risk.

The practical consequence is that portfolios built on broad market exposure find themselves exposed to companies regardless of underlying credit quality. For example, software businesses whose models are being disrupted by AI, retail borrowers, and commodity companies exposed to market cycles find their way into these portfolios.

When you buy the market, you get all of it—including the parts you wouldn’t have chosen.

That’s why BCI’s Capital Markets & Credit Investments program takes a different approach.

Why credit selection matters 

BCI’s private debt portfolio offers approximately 550 basis points in credit spread, a premium earned through a strategic decision to focus primarily on credit selection, as opposed to passive market exposure.

Around 65% of BCI’s C$20 billion private debt allocation is in direct loans or co-investments alongside trusted partners. This sets BCI apart from many other investors and brings meaningful advantages that benefit our clients: diversification, deeper relationships, deal selectivity, and lower fees.

When US direct lending spreads compressed through 2025, BCI continued expanding into Europe, Asia Pacific, asset-backed lending, and investment-grade private debt, all strategies offering better spread compensation and fit for our clients’ portfolios.

Overall, the program has shifted its geographic mix. While still maintaining a meaningful exposure in the US, redeployed capital is targeting opportunities in Europe and Asia, offering 25–50 basis points of additional spread.

Built on strong foundations, relationships, and expertise since the private debt program launched, BCI is well positioned for where credit markets are moving. 

Private Equity

“I’m cautiously optimistic, moving towards more optimistic on private equity as deal activity slowly recovers. BCI has had a great ten-year run—returns around 16.1%. The platform is well positioned for the market opportunity going forward.”

– Jon Salon, EVP & Global Head, Private Equity   

Now: The private equity market environment today 

Private equity is in a period of meaningful transition. Interest rates have largely stabilized and valuations are moderating from their 2021 peaks, but the market is still working through the consequences of that cycle. An estimated $3.7 trillion in assets are considered “hung assets”: sellers unwilling to accept lower prices, and buyers unwilling to pay peak multiples. Exit markets are gradually improving but liquidity remains constrained. 

The more fundamental shift is structural. Gone are the days where interest rate tailwinds and multiple expansion drive returns. Creating real operational value for our investments by working alongside management teams to create efficiency, accelerate revenue growth, and build more resilient businesses is a growing source of return. That requires a different kind of capability: sector expertise, operational talent, and genuine partnership with GPs and portfolio companies.  

Next: Why we are cautiously optimistic 

BCI Private Equity’s 10-year annualized return of 16.1%1 (as at March 31, 2025) reflects a platform that has delivered and one that has spent this period building for what comes next.

As exit markets gradually reopen and valuations continue to moderate, BCI is ready to move. The program has expanded beyond traditional buyouts into recapitalizations, structured equity, and broader capital solutions giving the team greater flexibility to deploy capital across a wider range of opportunities as they emerge. And with offices in New York and London, the team is close to the GP relationships that generate early access to deal flow. 

BCI has long invested in deep sector expertise and has been deliberately deepening it. The team includes sector specialists who understand the industries they invest in well enough to drive pipeline, manage assets, and work alongside management teams to shape real operational outcomes.  

Sustainable portfolio management and value creation is part of that picture too.  For example, BCI and Stanford University have demonstrated that ESG initiatives in private equity generate measurable returns for portfolio companies and investors alike. Read the research. 

1 As at March 31, 2025 

Infrastructure & Renewable Resources

”BCI Infrastructure & Renewable Resources has navigated through a number of bumps in the road—the global financial crisis, euro crisis, COVID, post-COVID inflation. Part of the reason is the highly diversified portfolio across many sectors and countries. When you look at the portfolio level, it’s very resilient.” 

– Lincoln Webb, EVP & Global Head, Infrastructure & Renewable Resources 

Now: How the I&RR portfolio has remained resilient 

The resilience of BCI Infrastructure & Renewable Resources isn’t accidental. It’s the result of thoughtful construction and the application of a consistent set of principles over two decades and multiple market cycles: essential assets, defensive capital structures, and broad diversification.  

Today, the portfolio spans 30+ countries, multiple sectors, and invests in essential services that people depend on regardless of economic conditions. Essential assets — electricity, gas, water, digital infrastructure — don’t stop being necessary because markets are volatile. 

These principles have been tested repeatedly. The program has navigated through the global financial crisis, the Euro crisis, COVID and held steady through all of it.  And when post-COVID inflation spiked to near double digits, built-in passthrough mechanisms allowed revenues to increase alongside rising costs. 

Different shocks, different pressures but the result has been a resilient portfolio.   

Next: Positioning for the next decades of growth 

The megatrends that have driven infrastructure investment over the past two decades including digitization, energy security, and decarbonization, show no signs of slowing. And more recently, energy security and food security have come into focus. Globally, an estimated US$40 trillion2 in infrastructure investment is needed over the next 20 years to meet demand. Not all of that is accessible to private capital, but the investable opportunity set that meets the program’s risk-return profile remains sizeable. 

Decarbonization is a case in point. Policy uncertainty in the US has caused some capital to pull back from renewables, pushing returns on operating solar and wind assets from 5–6% to 9–10%, while demand for clean, reliable energy isn’t slowing. That gap between retreating capital and growing demand is exactly the kind of opportunity BCI is built to capture.  

Northview Energy is how that opportunity takes shape. BCI recently announced the acquisition of a portfolio of operating solar and wind assets under long-term contracts with high-quality energy buyers. The platform is built to grow with an agreement in place to acquire additional assets as the energy transition continues. 

2 Figure expressed in US dollars. 

Sources: BloombergNEF, 2025; Institute for Energy Economics and Financial Analysis, 2024; International Telecommunication Union, 2025; Climate Policy Initiative and Food and Agriculture Organization, 2024.  

Conclusion

Across every asset class, the message from BCI’s investment leaders is consistent: patient capital enables investor discipline. Walking away from crowded trades. Evolving with market cycles. Building resilient portfolios.

BCI’s focus has always been on the decades ahead, not the next quarter. The measure of success is straightforward: secure financial futures for the people, organizations, and communities that BCI’s clients serve across British Columbia and beyond.

Our 25-year track record speaks for itself. Nearly $300 billion in assets under management. A global presence that gives us access to top talent and the best deals. And the expertise to invest with agility across the capital stack to secure the right opportunities for our clients.

That’s the BCI advantage now: patient capital deployed globally to benefit future generations.

As for what comes next, you’ve heard directly from the people making the calls.

Some excellent insights here from BCI's senior investment executives, nothing earth-shattering but at least they held an Investor Day to share some insights (ideally, should be videotaped and posted on YouTube or Vimeo).

I would have also liked to hear from Dennis Lopez, CEO of QuadReal, since he's in charge of BCI's real estate portfolio (QuadReal does its own thing, they're performing very well).

I'll share some thoughts with you, beginning with private equity. 

Jon Salon, the new head of PE at BCI, took over the helm from Jim Pittman who recently departed the organization. 

He's a seasoned veteran who really understands the asset class.

In a conversation with him posted on BCI's website back in February, he explained his focus and strategy:

Following BCI’s recent announcement of his appointment, Jon Salon officially begins his role today as Executive Vice President and Global Head of Private Equity. With more than three decades of private equity and executive management experience, Jon brings a proven record of leadership, strategic vision, and operational discipline to his new role.

Jon joins BCI’s executive leadership team with a clear mandate: to advance BCI Private Equity’s high‑conviction, globally diversified investment strategy that creates sustainable, long‑term value for pension fund and institutional clients. He now leads a team of more than 75 professionals based in Victoria, New York, and London, overseeing a C$36 billion+ portfolio across fund, direct, and co‑investment strategies.

We sat down with Jon to hear his views on private equity, BCI’s evolving priorities, and where he sees opportunity ahead.

Drawing on three decades of diverse experience

Jon’s career spans the full spectrum of private equity and corporate leadership, from investment management and operations to legal and capital structuring and deployment. Before joining BCI, he spent 15 years as a Managing Partner at Bedford Funding, a US$1.4 billion private equity firm specializing in growth equity and buyouts across healthcare and technology. In this role, he developed a deep understanding of technology, growth and transformation initiatives. More recently, Jon served as President and CEO of MDLIVE, an Evernorth company within the Cigna Group and a leading provider of virtual healthcare services across the United States.

“I’ve had the rare opportunity to sit on all sides of the table – as a GP, LP, and corporate leader,” Jon reflects. “That breadth of experience gives me a deep understanding of how alignment and trust drive successful business outcomes.”

Perhaps unexpectedly, Jon began his career in transactional law, where he built deep expertise in corporate risk analysis, structuring and governance, and dealmaking. Those early legal insights continue to inform his approach to complex transactions today.

Lessons from a career in private equity

Reflecting on his career, Jon emphasizes that private equity is, at its core, a relationship‑driven business.

“This is an industry where talent and analysis matter, but long‑term success is built on trust and alignment,” he says. “Strong partnerships – whether with company management teams, co‑investors, or internal colleagues – are what enable us to act with conviction.”

Evolving strategy, building on strength

When asked whether his appointment signals a significant shift in strategy, Jon is clear: “Our direction remains largely consistent, with an emphasis on selective, high‑conviction investing, deep partnership collaboration, and operational value creation at the core. What’s evolving is our ability to effectively execute that strategy on a truly global scale – with the appropriate processes, partners, and team-based approach to drive growth.”

He expects continued emphasis on direct investments with meaningful governance rights, alongside greater geographic diversification. “Our talent is our greatest differentiator,” he adds. “We’ll continue empowering our professionals across regions to cultivate deep relationships and work closely with portfolio companies and partners on the ground to drive meaningful outcomes.”

He adds: “In private equity, we are not in the business of selling products or services. We are in the business of making sound investment decisions. How we support that decision-making is what sets us apart. It’s the combined strength of our deeply talented team, our technology, and our relationships that enables us to make decisions with conviction.”

What sets BCI Private Equity apart

Jon sees BCI’s integrated global model as one key advantage. “Our teams in Victoria, New York, and London collaborate seamlessly to deliver a global perspective and local execution,” he explains. “Even as some of our peers have retrenched, we continue to see quantifiable value from our internationally based offices – especially in terms of origination and asset management.”

Our flexible approach to investment structures also differentiates us. “Our Private Equity team evaluates direct opportunities with a broad view of the capital stack, recognizing that value and risk can often be optimized through thoughtful structuring rather than traditional equity alone. Structured debt and equity solutions are increasingly important components of our toolkit, allowing us to tailor solutions for situations with strong upside potential while also providing additional downside protection and capital preservation.” These types of investments often provide enhanced resilience in an evolving market environment.

Speed, flexibility and decisiveness further define BCI Private Equity’s approach. The program is increasingly adopting a capital allocation strategy that enables us to redeploy liquidity into high-conviction opportunities with very little lead time. “Our ability to move quickly, execute complex transactions efficiently, and invest across the capital structure gives us a real edge in today’s market.”

Where opportunity lies in the next 12–24 months

Looking ahead, Jon emphasizes both disciplined growth and deeper partnerships. A key priority is continuing to build out BCI’s presence in London – an important hub for European deal flow and co‑investor relationships.

“Our London team is integral to BCI’s global connectivity,” he says. “They’re sourcing quality opportunities and strengthening relationships with Europe‑centric companies and co‑investors. That local presence gives us both visibility and agility.”

Jon also highlights the value of deepening strategic partnerships. Going forward, BCI Private Equity expects to direct a greater share of capital commitments towards a more selective group of core GP partners.

“We’re refining our network to focus on GPs who bring differentiated opportunities, demonstrate a strong track record of superior returns, and share our views and principles around collaboration. These relationships, rooted in alignment and trust, allow us to act quickly and decisively on attractive transactions and value‑creation opportunities.”

Over the next several quarters, BCI Private Equity intends to take a strategic approach to fund engagement and rationalization.

Trends shaping the future

In an environment marked by a slower pace of exits, Jon notes that discipline has become more critical than ever. “We’re being highly deliberate about where we deploy capital, ensuring every investment has multiple credible, visible paths to exit and alignment across partners.”

There are also opportunities to differentiate BCI as a flexible capital solutions provider in this environment. “Our flexible capital strategies and broader BCI relationships can often support our portfolio companies as they mature through the capital lifecycle – whether that be through recaps, structured equity, debt financing, or more traditional exit pathways.”

Building on a strong foundation

Jon believes BCI Private Equity’s team should be proud of the momentum they’ve built over the past several years. The team has taken meaningful steps to build value creation capabilities within its investment process, integrating data‑driven tools and AI capabilities to support portfolio company growth.

“We’ve redefined how we work together as one Private Equity team, bringing deep sector expertise and specialized skill sets into a more integrated way of operating,” he says. “It’s positioning us, and our partners, to unlock greater value and seize market opportunities.”

As Jon begins his new leadership role, his message is one of continuity and confidence. “BCI Private Equity’s foundations are built on disciplined investing, trusted partnerships, and a global perspective. My focus is on amplifying what we already do well at greater scale and continuing to deliver for our clients.”

Jim Pittman hired Jon Salon so it doesn't surprise me that he sounds an awful lot like him when he discusses private equity and their approach. 

He sounds optimistic as deal activity slowly recovers, but remains cautious as the asset class works through many headwinds.

It remains to be seen if BCI and other large Canadian pension funds can navigate this more challenging period in private equity.

In late March, James Bradshaw of the Globe and Mail reported that BCI let go about 10 staff in its private equity division, trimming the ranks of its teams focused on direct buyouts and funds after Salon was appointed as the new head.

I can't say I was shocked. I was waiting for it and have seen the same thing going on at many Maple 8 funds in private equity.

Typically, it's the fund people that get cut first in this environment. 

Going from 75 employees to 65 isn't as drastic as it might seem, but it stings because these are highly paid professionals and it's not an easy market in private equity to turn around and find another job. 

Also, remember the rule of thumb: if assets under management get hit, headcount gets hit; that goes for all financial firms managing money.  

Anyway, we will not know exactly how BCI's private equity portfolio performed in 2025 until the annual results are released in the coming weeks. 

I do agree with Jon on this point: the time for operational excellence is now and this market is unforgiving; it rewards those who execute and punishes those who don't (in all private market asset classes). 

Every private equity team out there has to focus on what they are good at and find strategic partners to co-invest in areas where they can't compete.

Now, quickly, let me go over private credit and infrastructure at BCI.

I agree with Daniel Garant, the US market has become very competitive, banks are swarming in and whenever they do, my antennas go up, and not in a good way:

‼️Wall Street's exposure to private credit is now impossible to ignore:

9 largest US banks collectively hold ~$180 billion in loans to private credit firms, led by JPMorgan at $50 billion, Wells Fargo at $36 billion, and Citigroup at $22 billion.

Meanwhile, Investors attempted… pic.twitter.com/VgeUHT4mv0

— Global Markets Investor (@GlobalMktObserv) April 22, 2026

Yes, most banks are doing a decent job in private credit, but I'm starting to feel like we are coming to the end of this credit cycle, and once the party ends, those taking stupid risks or playing fast and loose with their underwriting, will be exposed.

Right now, you really need to partner up with funds that are top experts in their underwriting and know how to navigate a down credit cycle.

So Garant is right, don't buy the beta, prioritize credit selection here. 

Lastly, on infrastructure and natural resources, Lincoln Webb and his team have done a great job over the years building a resilient and diversified portfolio.

The only thing I see in infrastructure is the big private equity firms are increasingly scaling into the asset class and that means more competition for assets and valuations tend to be high when that happens.

In infrastructure, just like in real estate and private equity, it really matters what you pay for an asset initially and at what valuation.

The only good thing is you can keep an asset in your books for a long time but that doesn't mean it can't get marked down (a few large Canadian pension funds got hit on renewable energy assets last year). 

Ok, let me wrap it up there, I look forward to covering BCI's annual results when they're released and who knows, maybe CEO/ CIO Gordon Fyfe will grace me with a discussion (not holding my breath).

Please note you can read more BCI insights here. 

Below, Bloomberg Senior Writer for Ideas & Culture Felix Salmon discusses with David Gura and Christina Ruffini on Bloomberg This Weekend the growing attention on private credit, a trillion-dollar asset class involving direct loans from investors to private equity-backed companies.

Also, Apollo Global Management President Jim Zelter talks about the unprecedented surge in capital expenditures, the future of private credit, and where he’s seeing investment opportunities around the world.