British Columbia Investment Management Corp. let go about 10 staff in its private equity arm this week, trimming the ranks of its teams focused on direct buyouts and funds after appointing a new head of the division early this year, sources said.
The most senior departure was Natasha Dillon, a senior managing director in charge of value creation, who was one of two high-level hires in 2024 to build out BCI’s London office and establish a hub for deal-making in Europe.
Other staff leaving BCI included principals and directors based in New York, London and Victoria, where BCI is headquartered. Some of the staff who are leaving had covered sectors such as business services, health care and technology, according to two sources with knowledge of the departures.
The Globe and Mail is not identifying the sources as they are not authorized to discuss the changes publicly.
“BCI’s private equity program has made a decision to simplify its operating model and sharpen the execution and delivery of the investment strategy,” a spokesperson said in a statement. “While we don’t comment on specific personnel matters, this decision impacts a small number of colleagues, and we’re thankful for their contributions.”
BCI is one of Canada’s largest pension fund managers, with $295-billlion in assets under management and a $36-billion private equity portfolio, invested on behalf of 32 public sector pension and institutional clients.
The staff changes this week mark one of the first notable operational moves by Jon Salon, who was named executive vice-president and global head of private equity in late January, when BCI shook up leadership of the division. But it is not expected to signal a significant shift in strategy.
Mr. Salon succeeded Jim Pittman, who had led BCI’s private equity arm since 2016 and oversaw an expansion of the division that included the opening of an office in New York, where he was based, as well as the push into London. Mr. Pittman installed several senior leaders who were based in New York or London, as part of a strategy to put key people closer to the most important financial centres for deals.
One of those hires was Mr. Salon, who joined BCI in 2024 as a senior managing director leading the fund’s health care team. His role then expanded to add oversight of the fund’s venture and growth strategies as well as leadership of the New York office.
The private equity sector has struggled in recent years as high interest rates drove up debt costs and compelled funds to mark down valuations on some assets, making it harder to sell assets or raise money for new funds. That has led to a dearth of deal-making as buyers and sellers have struggled to agree about what companies are worth.
Some large pension fund managers have committed more capital to third-party funds, edging back from direct investing. And Ontario Municipal Employees Retirement System (OMERS) stopped making direct private equity investments in Europe as part of a strategic shift that started in 2024.
In spite of a tough market, BCI has had success at selling some of the larger assets in its portfolio, unloading its majority stake in European alternative asset manager Hayfin Capital Management as well as U.S.-based fibre internet provider Ziply Fiber. The Victoria-based pension fund has also been active in secondary markets, and made $2.2-billion in new investments in the fiscal year that ended March 31, 2025.
BCI’s private equity division earned a 13.4-per-cent return in that fiscal year, falling short of a benchmark return of 30.1 per cent that was weighted toward publicly traded stocks, including the technology giants that surged in value on bullish investments in artificial intelligence.
BCI’s 15.4-per-cent private equity return over five years beat its internal benchmark of 14.4 per cent.