Canada’s Investment Surge: Real Estate, Infrastructure, and Acquisition Momentum

The Canadian investment landscape is undergoing a significant transformation, shaped by soaring real estate returns, a monumental infrastructure strategy, and a growing wave of acquisitions. As business decision-makers navigate these shifts, understanding how capital is moving across real estate, private equity, infrastructure, and M&A is becoming essential for strategic planning.

From record real estate performance to federal infrastructure spending expected to catalyze over $1 trillion in private investment, Canada’s private markets are entering a new growth phase. This article explores the key trends shaping this investment surge and outlines what they mean for business leaders and investors.

Real Estate Returns Are Driving Capital Inflows

Canadian real estate has emerged as a standout performer, delivering strong returns that are attracting both domestic and institutional capital.

Anson Funds Management led this surge in 2025, generating a 21.2 % return on its real estate investments, up sharply from
10.1 % in 2024. This performance has been reflected in the firm’s growing scale, with assets under management rising to $2.4 billion.

These results highlight the continued resilience of Canada’s real estate market amid urbanization, population growth, and sustained demand for residential and commercial space. For business leaders, the implication is clear: real estate remains a compelling long-term investment opportunity, particularly in markets exhibiting strong demographic and infrastructure tailwinds.

Private Equity Faces a More Selective Market

While real estate performance has accelerated, Canada’s private equity sector presents a more nuanced picture.

In 2025, private equity deal volume declined to 488 transactions valued at $46 billion, down from 646 deals totalling $57 billion in 2024. Despite the overall contraction, certain sectors continued to attract strong capital flows. Business products and services led with $14.7 billion in deal value, followed by the energy sector with $12.2 billion.

Exit activity also slowed, with private equity exits falling from 117 transactions in 2024 to 65 in 2025. Distribution rates have declined as well, dropping from roughly 20 % annually before 2021 to around 10 % currently.

For decision-makers, this shift underscores the importance of adaptability. While deal volumes have moderated, strategic investments in resilient sectors such as business services and energy continue to offer attractive opportunities. Adjusting expectations around exit timing and distributions is now a critical part of private equity portfolio planning.

A Wave of Acquisitions Is Building

Despite fluctuations in private equity activity, acquisition appetite across corporate Canada remains strong.

Recent surveys indicate that 33% of Canadian business leaders plan major acquisitions within the next 18 months. Among private equity–backed companies, that figure rises to
36 %, signalling a robust appetite for expansion even amid market uncertainty.

This trend reflects a growing recognition that strategic acquisitions are a key pathway to long-term growth. Whether expanding into new markets, diversifying product offerings, or acquiring innovative technologies, M&A remains a central lever for competitive advantage.

For decision-makers, the strategic focus should be on identifying targets that align with long-term objectives and offer operational or technological synergies that enhance enterprise value.

Infrastructure Investment: A $1 Trillion Growth Catalyst

One of the most powerful drivers of Canada’s investment surge is the federal government’s ambitious nation-building infrastructure strategy.

With a commitment of $115.2 billion over five years, the plan is expected to catalyze more than $1 trillion in private sector investment. The strategy targets critical growth areas including transit, AI-enabled digital infrastructure, energy, critical minerals, defense, and housing.

This massive capital deployment is creating a multi-decade opportunity set across sectors. For companies in construction, engineering, technology, energy, and industrial services, infrastructure spending represents a sustained pipeline of projects, partnerships, and revenue growth.

For business leaders, aligning corporate strategies with these government-led initiatives can unlock significant long-term value.

Strategic Focus Areas Within the Infrastructure Strategy

The infrastructure strategy highlights several priority sectors that offer particularly strong growth potential.

Investments in public transitare expected to support urban development and large-scale construction projects. As cities expand, transit infrastructure will play a central role in economic productivity and housing accessibility.

Spending on AI-enabled digital infrastructure reflects the growing importance of data centers, cloud computing, and artificial intelligence platforms. Technology companies and service providers are positioned to benefit from the rising demand for digital capacity.

The focus on energy and critical minerals underscores Canada’s role in the global energy transition. Renewable energy projects and mining investments are likely to accelerate as governments and corporations pursue sustainability and resource security.

In defense and housing, increased government spending is creating opportunities for contractors, developers, and suppliers. Housing investment, in particular, addresses Canada’s growing affordability and supply challenges.

M&A Advisory and Execution Risk

As acquisition activity increases, the role of experienced M&A advisors is becoming more critical.

KPMG’s ranking as the #1 M&A advisor in Canada, with 65 transactions in 2025, illustrates the importance of expert guidance in deal structuring, valuation, and post-merger integration.

For business leaders, partnering with seasoned advisors can significantly improve transaction outcomes. Advisory expertise helps mitigate execution risk, optimize capital structure decisions, and ensure acquisitions align with long-term strategic goals.

Market Implications for Business Leaders

Canada’s investment surge presents both opportunity and complexity.

Real estate continues to attract capital due to strong performance and long-term demand drivers. Private equity activity has become more selective, rewarding disciplined sector focus and patient capital. M&A appetite remains robust, driven by growth ambitions and strategic repositioning.

At the same time, the federal infrastructure strategy is reshaping the opportunity landscape across multiple industries, creating long-duration investment demand.

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Conclusion

Canada’s investment surge reflects a powerful convergence of real estate growth, infrastructure spending, and rising acquisition activity.

For business decision-makers, the path forward lies in strategic foresight, disciplined capital allocation, and alignment with long-term structural trends. Embracing opportunities in real estate, selectively engaging with private equity, and positioning for infrastructure-driven growth can help organizations thrive in this evolving market environment.

As Canada’s private investment landscape continues to mature, those who remain informed, adaptable, and strategically aligned will be best positioned to capture value and drive sustained growth.