Deal values in the Canadian buyout and private equity market were especially strong in Q3 2019, according to final data released by Refinitiv, with a total of $21.1 billion invested across 136 transactions. That result brought total deployments for the first nine months of the year to $35.3 billion in 377 deals. Values at the end of September were up 41 percent compared to the same time in 2018, while transaction volumes increased 23 percent. Canadian investors participated in global deals worth $118 billion in the first nine months, the largest amount ever recorded.
A full PDF report of Q3 2019 Canadian private equity market activity by Refinitiv is available here.
REPORT SUMMARY (reproduced courtesy of Refinitiv)
Canadian PE Market Trends
Canadian buyout and related investment continued to gain momentum in the third quarter, with $21.1 billion of deal values recorded across 136 rounds between July and September. This brought the overall total for the first nine months of the year to $35.3 billion across 377 rounds, an increase in volumes over the same period last year of 23% and in values of 41%.
Five rounds with values of $1 billion or more were announced in the third quarter of the year, with combined deal values of $18.2 billion. This included the top two deals for the year to date, the $6.2 billion purchase of industrial property manager Dream Global REIT by funds managed by Blackstone Group, and the $5.2 billion majority investment into security firm GardaWorld by BC Partners.
While the number of Canadian buyout deals are up 23% year-over-year, the overall number of Canadian M&A transactions has declined by 11% during the first three quarters of 2019, resulting in the volume of PE-backed deals to climb to 23% of Canada dealmaking, up from 16% a year ago.
A total of 34 Canadian buyout and related funds recorded closes in the first nine months of 2019, raising $17.3 billion, up 169% year-over-year and already equivalent to the fundraising tally throughout the entirety of 2018. Fundraising was led by Altas Partners, which raised $3.5 billion for its sophomore fund, and Manulife, which raised $2.1 billion for its Private Equity Partners fund.
Canadian companies completed 52 PE-backed exits during the first nine months of 2019 valued at $10.3 billion, resulting in a 20% decrease in values and a 9% decrease in volumes when compared to the same period the previous year.