Canada’s private equity market saw $20.9 billion invested in 447 deals in the first nine months of 2017, already surpassing the $13.8 billion invested in all of 2016, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). Three mega-deals, including the $4.8 billion buyout of DH Corp, accounted for 38 percent of total values; however, the report also found growth in other market segments. Activity in Q3 2017 contributed to overall trends, with $7.1 billion invested in 160 deals, up 133 percent from Q3 2016. The industrial and manufacturing sector has so far accounted for the largest share of 2017 PE deals, or 19 percent of the total.
The CVCA’s overview of Q3 2017’s Canadian venture capital and private equity market can be downloaded here.
CVCA YTD Q3 2017 PE Canadian Market Overview: YTD Investment Eclipses 2016’s $13.8B
$20.9B has been invested over 447 deals so far in 2017, including three $1B+ mega-deals
November 22, 2017 – Toronto, ON – Canadian private equity experienced another breakout quarter with $7.1B invested over 160 deals. Investment levels were lower compared to the $8.8B invested in Q2 2017 but an exceptional 133% higher than Q3 2016.
The $7.1B invested in Q3 2017 brings the PE year-to-date total to $20.9B over 447 deals—already surpassing the $13.8B invested over 543 deals in 2016. Three $1B+ deals accounted for 38% of the total dollars invested; the largest was the $4.8B privatization of Toronto-based DH Corporation in Q1. Montreal-based companies comprised the other two including the $2.2B acquisition of Garda World Security Corporation and the $1.1B private placement in Osisko Gold Royalties Limited by CVCA members, Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.
“Canadian private equity is on trend to have another big year in 2017,” said Mike Woollatt, CEO, CVCA. “We’re seeing a healthy amount of activity that’s consistent with what we’ve been seeing in the Canadian growth industry over the last couple of years.”
Almost a fifth of (19%) of all PE deals this year have been closed in the industrial and manufacturing sector with the information and communications technology (ICT) sector receiving the second largest share (17%). This is a steady increase in these sectors since 2013 where ICT investment represented 10% and industrial and manufacturing saw a 14% share of total PE dollars invested.
Almost a quarter (71) of all Canadian private equity deals went to companies based in Montreal. 15% (44) deals were in Calgary-based companies while 13% (37) were in Montérégie, Quebec.
Private Equity Highlights:
– Private equity deal activity in all small-to-mid market segments have already exceeded last year’s totals:
– 49 deals between $25M-$100M have surpassed the 2016 total (48) by 2% with a total value of
– 22 deals between $100M-$500M have surpassed the 2016 total (14) by 57% with a total value of $4.5B.
– Seven deals between $500M-$1B have surpassed the 2016 total (4) by 75% with a total value of $4.8B.
– There have been almost twice the number of PE exits (108) compared to 56 in 2016.
– Secondary buyouts have contributed to more than half (52%) of the $6.1B in total exit value. – Four IPOs included the $445M dual listing of the iconic Canada Goose on TSX/NYSE and the $300M TSX-debut of Jamieson Laboratories Ltd.
• YTD Q3 2017 VC & PE Canadian Market Overview
-30About the CVCA
The CVCA is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening industry awareness and providing market research, networking, and professional development opportunities. We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of private capital firms in Canada, to improve the industry and drive innovation and growth. Please visit: http://www.cvca.ca.
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