If you run a BC company generating between $10-million and $150-million in annual revenue, there is a figure worth noting: British Columbia Investment Management Corporation (BCI) manages approximately $250-billion in assets. A growing portion of this capital is being directed toward growth-debt deals that BC mid-market operators have historically sought in Toronto or New York.

This strategy differs from BCI’s infrastructure investments. While the latter involves acquiring physical assets like toll roads and utilities, BCI’s private credit arm provides direct loans to operating businesses. By taking a position in the capital stack rather than purchasing an asset outright, BCI offers a financing alternative for founders and CFOs managing plant expansions or working-capital surges.

Private credit is essentially non-bank lending. Large institutional investors—such as pension funds or insurance companies—provide debt capital directly to a company, bypassing the syndicated loan market and chartered banks. These loans are negotiated bilaterally, and the lender holds the debt to maturity. Borrowers often gain more flexibility than traditional bank covenant packages allow, while lenders receive a yield premium for the illiquidity.

The Canadian market for this product has expanded significantly. The Canadian Venture Capital and Private Equity Association has tracked the domestic private credit market growing toward and beyond $50-billion in assets under management. This shift accelerated after 2022, as private credit spreads—typically 400 to 700 basis points over the relevant benchmark—remained attractive on a risk-adjusted basis.

BCI’s position is distinct from a pure-play private credit fund. As a Crown corporation managing capital for BC’s public sector pension plans, BCI operates under a long-duration mandate that allows for greater patience than a typical five-year private equity fund. A BCI private credit facility may carry a five- to seven-year term, avoiding the annual reviews and strict maintenance covenants often associated with traditional bank revolvers.

This domestic focus is particularly relevant for BC operators. While institutional private credit has historically targeted massive leveraged buyouts, the mid-market—defined roughly as companies with EBITDA between $5-million and $30-million—has often been underserved. Canadian private credit advisors have documented a persistent gap in the $15-million to $75-million deal range, where companies are often too large for credit union loans but too small for Bay Street debt syndicates.

BCI’s increased direct lending activity addresses this gap. Deals typically originate through intermediaries, including major accounting firms' corporate finance practices and boutique debt advisors. Advisory firms including MNP and KPMG’s BC capital markets teams have built practices to connect mid-market operators with institutional private credit, providing a practical on-ramp for CFOs.

Common structures include senior secured term loans, unitranche facilities, and mezzanine debt. Pricing typically ranges from 8 to 12 per cent all-in, depending on leverage and credit quality. While this is more expensive than a prime-based bank line, it is often cheaper than the dilution associated with equity financing.

For a $10M–$150M revenue operator, typical institutional thresholds include a minimum EBITDA of $3-million to $5-million, at least two years of audited financials, and a clear use of proceeds. BC’s policy framework for Crown investment encourages domestic economic activity, which can provide a preference for BC-based borrowers when deal economics are comparable.

What to watch:

  • BCI’s next annual report for disclosures on private debt allocation and domestic direct lending commitments.
  • CVCA’s mid-year 2026 data on Canadian private credit deal volume, specifically in the sub-$75-million tranche.
  • Whether competing institutional lenders, such as OMERS or CPPIB, begin targeting the same BC mid-market deals.
  • The Bank of Canada’s rate path, as private credit spreads are quoted over benchmarks.