Ramy Rayes: BCI’s FY2026 results underscore importance of flexibility in an evolving private markets landscape 

By Lauren Bailey 
Published: July 2026 

The British Columbia Investment Management Corp.’s (BCI) fiscal 2026 performance reflected three priorities: disciplined capital deployment, proactive liquidity generation and continued expansion of its direct investment strategy, according to Ramy Rayes, the organization’s executive vice-president of investment strategy and risk. 

BCI’s private equity portfolio returned 8.1% for the fiscal year ended March 31, 2026, according to its latest annual report. The results stemmed from the Canadian pension investment manager’s emphasis on flexibility, allocating capital across debt and equity opportunities rather than concentrating solely on traditional leveraged buyouts, Rayes said in an email to Markets Group. The strategy also delivered annualized returns of 12.1% over five years, 14.5% over 10 years and 15.5% over 15 years. 

Rayes said BCI’s private equity program benefited from disciplined deployment and active liquidity management. Half of the portfolio’s $36.1B in assets under management is invested through direct and co-investments, which he said continue to be the highest-performing component of the program. 

“We deployed $6.7B into private equity investments, nearly three times the year prior at a time when the market pulled back.” 

BCI also concentrated capital with its highest-conviction partners while expanding investment capabilities through initiatives such as the launch of its Capital Solutions Group, said Rayes. The CSG provides flexible capital across structured equity, GP solutions and strategic opportunities, with a focus on preferred equity, continuation vehicles, recapitalizations and strategic minority stakes. 

He also highlighted that, since launching its Venture & Growth strategy in 2021, BCI has invested alongside specialist managers in enterprise software, artificial intelligence, defense and other emerging technology companies. Recent investments include Photonic, a quantum computing and networking platform developer, Dominion Dynamics, which develops interoperable systems for military operations, and GovDash, whose software helps government contractors prepare proposals and manage procurement processes. 

Debt investments also emerged as an important contributor across private markets. As competition intensified in the North American direct-lending market, Rayes said BCI’s scale and ability to underwrite investments internally allowed it to remain selective while moving quickly on attractive opportunities. 

The private debt program returned 6.1% for the fiscal year and 8.1% annualized over the past five years while deploying a net $2.7B as it expanded into Europe and Asia-Pacific. 

BCI also seeded $1.8B to a new investment-grade private credit strategy in response to growing client demand for greater portfolio diversification and resilience. Rayes said underwriting the majority of its private debt investments directly gives BCI greater control over deal quality and lending terms. 

The pension fund’s Infrastructure & Renewable Resources portfolio returned 7.6% for the fiscal year, deploying $4.7B in new commitments, including nearly $700M in infrastructure debt and listed infrastructure strategies. 

Meanwhile, at QuadReal, the real estate debt portfolio returned 5.3% for the fiscal year while recording its highest transaction volume to date as higher interest rates and weaker property markets created attractive lending opportunities. The strategy also delivered a 5.2% annualized return over five years. At the same time, real estate equity returned -4.9% for the year, though it generated an annualized return of 1.3% over the five-year period. 

“The rapid interest rate increases of 2022 pushed cap rates higher, and the cost of debt has remained elevated in some regions,” Rayes said, noting the environment weighed on real estate returns, particularly development projects. 

“Our program, together with client discretion, allows flexible allocation between debt and equity, though we report the two components separately. Both programs share the same sectors of conviction, with QuadReal determining the best allocation of capital based on the circumstances of individual markets.” 

He added that BCI is finding attractive opportunities to acquire diversified, income-producing core real estate portfolios at dislocated prices while, in some sectors, lending continues to offer the better risk-adjusted return. 

Public markets also remained an important driver of fiscal 2026 performance despite increasingly concentrated equity markets that created headwinds for active managers. Canadian public equities returned 22.9%, global public equities gained 16.0% and emerging markets led the portfolio with a 28.6% return. 

BCI’s absolute-return strategies within the Global Partnership Fund continued to be the largest contributor to that fund’s outperformance since inception. In fixed income, the Funding Program recorded its strongest year to date, with three debt offerings increasing outstanding issuance to $10.25B. A $2B issuance completed in January 2026 was more than 2.5 times oversubscribed, attracting orders from more than 70 institutional investors. 

Overall, BCI generated a 6.7% return for its six largest pension clients in fiscal 2026, exceeding their average actuarial return target of 6.0%, despite lagging its benchmark return of 7.6%. All six pension plans maintained fully funded ratios ranging from 100% to 124%. 

BCI’s gross assets under management rose to $313.7B from $295B a year earlier, driven by $16.6B in investment income despite market volatility throughout the fiscal year. 

“Fiscal 2026 was bookended by volatility, tariffs and market disruption at the start and renewed geopolitical stress and inflation pressures at year-end,” Gordon J. Fyfe, the pension fund’s chief executive officer and chief investment officer, said in a news release. “This is the kind of environment BCI is built for. Our portfolio is broadly diversified, our liquidity is carefully managed, and we were never forced to react. Market stress creates opportunity, and we chose when and where to move.” 

Republished with permission. Read the original article on Markets Group.