Canadian Private Funds Gate $30B in Assets

Toronto, April 2, 2026 – Retail investors turning to private equity and credit funds for protection against declining stock markets, gold prices and housing values are facing significant challenges, as losses in these assets have prompted several Canadian firms to restrict or halt investor withdrawals, locking up billions in funds.

Financial institutions have ramped up marketing of these once-exclusive investments to everyday investors, promoting them as hedges against public market volatility with promises of superior returns. However, recent developments have exposed vulnerabilities, including doubts over the accuracy of asset valuations and the quality of underlying loans. In the United States, high-profile bankruptcies such as that of auto parts supplier First Brands Group have spotlighted risks in private credit lending. In Canada, the strain has hit private real estate funds hardest, with companies including Trez Capital Fund Management, Centurion Asset Management Inc. and Avenue Living Asset Management Ltd. imposing limits on redemptions in recent months. Bloomberg reports that approximately $30 billion in Canadian private fund assets are now "gated," preventing...