Return to search

Canada’s PE market sees robust dealmaking, lower values in Q1

Canada’s private equity market saw C$1.4 billion invested across 212 deals in the first quarter of 2022.

Canada’s private equity market saw C$1.4 billion invested across 212 deals in the first quarter of 2022, according to a report by the Canadian Venture Capital and Private Equity Association. The number of deals done in the period was the second highest on record. The relative absence of large transactions, however, contributed to a decline in values. Out of the total deals closed in Q1 2022, 92 percent had disclosed values of below C$25 million.

Access the full report here.

PRESS RELEASE

CVCA’s Q1 2022 Canadian PE Market Overview: Over 90% Of Private Equity Investment Went Into Canadian SMEs in Q1

May 17, 2022 – Toronto, ON – Today, the Canadian Venture Capital and Private Equity Association (CVCA) released its Q1 2022 report on private equity (PE) activity in Canada. CAD $1.4B of private equity was invested across 212 deals in the first quarter of 2022. This is the second highest number of deals for a single quarter on record (215 in Q4 2021). The absence of large and mega-deals contributed to a decline in total deal value in Q1.

Out of the 212 deals that closed in Q1 2022, 92% of the deals (121) with disclosed values were under CAD $25M, and the average PE deal size continues to decrease. Deals under CAD $25M continue to make up the largest percentage of the Canadian PE market, underscoring the importance of PE investing into Canadian small and medium-sized businesses (SMEs).

“There are a few observations of note for private equity investment in Q1,” said Kim Furlong, Chief Executive Officer, CVCA. “First, we’re seeing similar PE market trends globally, particularly in the United States and European markets. In Q1, the US similarly experienced a decline in the total deal value. Second, there are several issues becoming factors in investment decisions, including inflation, valuation adjustments, the war in Ukraine, and geopolitical forces.”

The largest disclosed PE deal of the quarter was Ontario-based eSentire’s $414M financing backed by Georgian and CDPQ. Other notable deals include Quebec-based Synex Business Performance Group’s CAD $100M transaction.

For a deeper look into the performance of Q1 as well as the trends uncovered in 2021, the Canadian private capital industry will be gathering for CVCA’s Invest Canada ’22 from May 25-27 in Ottawa. This year, there are several expert-led panels dedicated to exploring current themes. For more information, visit the Invest Canada website.