The State of Private Impact Investing in Canada

Strong growth in product launches, new fund managers, more impact areas and greater diversity of asset classes

March 2026

Research published from the Institute for Sustainable Finance and Rally Assets reveals Canada’s private impact investing market is coming of age. The research offers evidence of a maturation in the sector over the past five years. The findings signal a shift from a niche segment to a more established and investable market for Canadian asset owners.

Key findings:

• A 2025 cumulative market size of $17.7 billion in target capital
• Annual target capital reached $4.2 billion in 2025, a nearly nine-fold increase since 2021.
• Annual product launches reached 55 in 2025 – a nearly seven-fold increase since 2021 – with first-time fund managers responsible for almost half of product launches in 2025.
• Market growth has not been uniform over the years. The market would benefit from increased asset owner allocations, more innovative financing models, greater regional representation and more diverse areas of impact.

The report is a unique joint practitioner-researcher response to a call from the Canadian Impact Investing Working Group to dispel myths and misperceptions about impact investing and assess the current supply of impact investment products in Canada.