Canada’s top pension funds pile into private credit

Banks globally have been squeezed by higher capital requirements, forcing a retreat from some lending. — Reuters

TORONTO: Six of Canada’s biggest pension funds managing C$1.3 trillion in assets have begun a major expansion into private credit, moving into an area previously dominated by banks.

Canada Pension Plan (CPP) Investments, Ontario Teachers’ Pension Plan (OTPP), Ontario Municipal Employees Retirement System (Omers), OPTrust, Healthcare of Ontario Pension Plan (HOOPP) and British Columbia Investment Management Corp (BCI) told Reuters they intend to increase their exposure to private credit – typically tailored loans to companies underwritten by non-banks.