Canada Pensions Overseeing $1.2 Trillion Revamp Private Equity Model

For the likes of Blackstone Inc. and KKR & Co., a multibillion-dollar opportunity beckons from Canada.

Some of the country’s biggest pension funds are looking to scale back their direct private equity bets, according to people familiar with the matter. Instead, they’re moving to invest more through established buyout giants, or partner on deals with other big investors such as endowments and sovereign wealth funds.