British Columbia Investment Management has created a Capital Solutions Group within its private‑equity arm to supply preferred equity, recapitalisations and continuation‑vehicle financing. Jon Salon, head of private equity, said the team will act as a capital source for general partners facing a prolonged exit drought. The move targets a market where traditional IPOs and strategic sales have stalled.

Continuation vehicles now represent 20‑30% of BCI’s deal pipeline, up from about 5% two years ago, reflecting sponsors’ reliance on these structures to extend hold periods and generate distributions. The pension fund is also pursuing structured‑equity funds and preferred equity tranches that aim for 12%‑15% returns, positioning itself between senior debt and full‑fund commitments.

BCI’s private‑equity portfolio totaled C$33.6bn at the end of March 2025, with capital‑solutions assets currently under 5% of that book. Salon plans to lift that share to roughly 15% over the coming years, embedding the pension fund deeper in the buyout value chain and giving it early access to bespoke transactions before they hit the broader market.