Insights from BCI’s 2026 Investor Day

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). 

Any 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.