“Many of the assets shifting out of Canadian equities will move to alternative asset classes,” says Crisil Coalition Greenwich Global Co-Head of Investment Management, Mark Buckley. “Private markets are making up a bigger part of institutional portfolios in Canada and around the world, and Canadian institutions are clearly committed to increasing exposure further in the next three years.”
Private markets are emerging as a key destination for institutional capital. Approximately one-third of respondents plan to significantly raise their exposure to private credit, while 36% expect to make major increases in private infrastructure equity. In both segments, fewer than 10% anticipate cutting allocations.
Private equity presents a more mixed outlook. While 38% of institutions are targeting substantial increases in allocations, roughly one-quarter are planning reductions, suggesting a more selective approach within the asset class.
As allocations shift toward higher-return alternatives, expectations for overall portfolio performance are also rising. The study found that Canadian institutions lifted their five-year return forecasts to 6.1% in 2025, up from 5.9% the previous year.
The growing reliance on private assets is also reshaping how institutions engage with asset managers. The inherent complexity and lower transparency of private markets are prompting calls for improved communication and reporting standards.
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