A Practitioner View on the State of Private Impact Investing in Canada

March  2026

Note: We have published new research with the Institute for Sustainable Finance (ISF): The State of Private Impact Investing in Canada. What follows are some reflections on this reserach.

For years, we have been sourcing and investing in impact products across the country. Our impact investing practitioner experience is likely unmatched in Canada. With access to more than a decade of impact investment data, a national network of managers and a deep pool of investment opportunities, we have a dataset of sufficient breadth and depth to enable market-level analysis and conclusions.

We wanted to see if we could leverage our data, experience and views to benefit the wider market. And so we reached out to ISF, the innovative cross-cutting research institute examining Canada’s sustainable finance capacity.

With our practitioner perspective and ISF’s rigorous, independent analysis we have been able to create a ‘state of the market’ multi-year analysis of private impact investing that adds greatly to research previously published.

The research reveals a private impact investing market in Canada that is far more dynamic and investable than many may assume.

One of the most common misconceptions we encounter is product scarcity. The data tells a different story. Based on target fund sizes, Canada’s private impact investing market has reached $17.7 billion. There is meaningful breadth. The opportunity set is deep. This market is no longer emerging; it has emerged and is evolving. We’re also seeing strong momentum. Particularly following the launch of the federal Social Finance Fund in 2023, product formation has accelerated, with record activity in 2025 and a notable rise in first-time fund managers. This aligns closely with what we’ve experienced on the ground: significantly increased deal flow and a new generation of impact-driven managers entering the market.

We’re confident this momentum will continue. At the same time, fundraising challenges exist. Many emerging and first-time managers are struggling to reach their target fund sizes in a slower fundraising environment (as shown, for example, in the CVCA H1 2025 market report). Capital has not always kept pace with innovation. This is where anchor investors become critical. We have observed that strategies which pool capital and deploy meaningful ticket sizes, aggregating exposure across managers and themes, can play a foundational role in unlocking scale. As the market matures, these structures will be essential in bridging the gap between institutional capital and emerging impact opportunities.

Another persistent misconception is treating impact investing as an asset class. Impact investing is an approach that spans asset classes and themes. The report reinforces a structural trend we’ve long observed, now backed by clear evidence: venture capital remains the dominant asset class, with a strong concentration in early-stage investing. This reflects Canada’s appetite for innovation. We are not surprised by this result and venture capital plays a critical role in driving much-needed new ideas and breakthrough solutions. At the same time, there is a relative shortage of diversified private credit and private equity strategies, and more capital is needed in later-stage investments and debt structures to ensure financing flows across the full supply chain and supports enterprises at every stage of growth.

Thematic trends are evolving as well. Climate mitigation continues to lead, but we are increasingly seeing funds combine environmental objectives with social priorities such as racial equity, quality jobs and financial inclusion.

We hope this research helps inform future product development and capital allocation, strengthening the market’s depth and long-term resilience.

If you’d like to dig into the findings from the report, or discuss how your organization could shift more capital to impact-aligned opportunities, please get in touch.