The capital asymmetry
Sovereign wealth funds (SWFs) control over US$12 trillion, up 80% since 2015. Canada’s largest institutional investors — CPP Investments, CDPQ, and OTPP — together manage roughly US$1.2 trillion, but operate without a unified national mandate.
| Investor Type | Assets (US$ tn) | Annual Growth % | Source |
|---|---|---|---|
| Global SWFs | 12.0 | +6.8 | SWFI 2025 |
| Canadian pension funds | 1.2 | +5.1 | IFS 2025 |
| Sovereign innovation funds (OECD avg.) | 0.9 | +8.4 | OECD 2025 |
Why this matters
- SWFs in Singapore, Norway, and the UAE are reshaping global investment in AI, renewables, and critical minerals.
- Canada’s decentralized model lacks scale coordination for geopolitical competitiveness.
- Domestic venture gaps persist despite institutional liquidity.
What leaders can do
- Create strategic co-investment platforms. Align pension, corporate, and government capital.
- Build a Canadian sovereign innovation fund. Focused on AI, green tech, and biotech.
- Expand public-private investment syndicates. Blend risk appetites efficiently.
- Globalize Canadian institutional partnerships. Compete where capital matters most — at scale.
Arcus Insight: Capital strategy is national strategy. Canada must consolidate its investment power to stay relevant in an age of sovereign capital.