The State of Private Impact Investing in Canada
Rally Assets and Institute for Sustainable Finance - March 5, 2026
In March, Rally Assets and the Institute for Sustainable Finance (ISF) published new research: The State of Private Impact Investing in Canada. Rally's deeply experienced practitioner perspective and ISF’s rigorous, independent analysis were used 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. 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.
Report available in English and French here.