British Columbia Investment Management Corp. is stepping into private equity fund financing as traditional dealmaking stalls. The pension fund has launched a dedicated Capital Solutions Group within its private equity division to support buyout firms struggling to raise capital in the current market environment.

Jon Salon, BCI's head of private equity, said the new team will target preferred equity investments, recapitalizations, and continuation vehicle funding. These strategies give private equity firms alternative paths to liquidity when conventional exits remain scarce.

The move reflects a broader shift across institutional investors toward creative capital solutions. With deal volumes down significantly, buyout firms are sitting on mature portfolio companies longer than planned, creating urgent funding needs.

BCI's expansion suggests institutional investors see opportunity in the market dislocation. The pension fund's entry into this space could pressure traditional lenders while providing crucial capital to private equity firms navigating an extended drought in M&A activity.