Private equity rising in Canada

Shahir Guindi

April 2015

Julius Melnitzer, Lexpert

(Recap)

When Lexpert last did a major piece on private equity in February 2013, we called in “Trouble in Paradise.” Sandra Rubin’s article pointed out that while PE deal flow was nowhere close to what it used to be” before the financial crisis, there were “glimmers of hope.”

Hope’s most common characteristic, of course, is that it abounds. Sometimes it crystalizes, but more often it doesn’t. In this particular case, however, the glimmers have at least begun to bring a little light to the situation.

That’s not to say that we’re back in the heady days. What we can say, however, is that the Canadian PE market has been gaining strength in the last few years.

But investors and sellers have learned from the financial crisis experience. Many sellers are demanding high prices even as buyers are wary of paying too much.

Nowadays, that can be a chore.

“The strategics are buying and that tends to drive up valuation,” says Shahir Guindi of Osler, Hoskin & Harcourt LLP in Montréal.

Read the full article.