A well of money that private equity firms tap may be running dry.

Two sizable Canadian pensions are moving quickly from investing in private equity funds to buying businesses directly, sometimes competing with the big boys, according to this week’s Canadian Investment Executive. The idea is to make the same kinds of investments but cut out the hefty PE fees.

Ontario Teachers’ Pension Plan, which allocates 65 percent of its private equity to funds, expects to have 80 percent of that in direct investments, the publication said.

The Alberta Investment Management Corp. is moving 60 percent to 70 percent of its private equity portfolio to direct investments, up from roughly 20 percent currently.