Private credit exposure for Canadian firms reaches $360B, mostly in US markets

Canadian financial institutions and funds have quietly built up roughly C$500 billion ($360 billion) in private credit exposure, with the vast majority of that capital deployed outside Canada’s borders. The Bank of Canada flagged the figure in its 2026 Financial Stability Report, offering one of the clearest pictures yet of just how deeply the country’s biggest investors have waded into the booming world of non-bank lending. Who’s writing the checks Canada’s largest pension funds, collectively known as the Maple 8, account for a significant chunk of the action. Together, they’ve amassed over $100 billion in private credit assets. The Canada Pension Plan Investment Board leads the pack with approximately $43 billion in private credit holdings. That figure is set to grow substantially, with plans to expand its portfolio to over $115 billion by 2029. Life insurers are right there alongside the pensions. Manulife and Sun Life each exceed $40 billion in private credit investments. Most of this capital flows into US markets, where the private credit ecosystem is deepest and most developed. Domestic lending in Canada remains comparatively limited. The appeal and the anxiety Private credit...