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Private equity continues to drive deal activity

Author(s): John Groenewegen, Emmanuel Pressman

Dec 13, 2019

The 2019 year-to-date activity levels in the Canadian private equity (PE) space are strong, exceeding 2018 levels for the same period. In this article, we explore a number of key trends we observed.

Strong private equity market

According to Refinitiv, there was a total of $35.3 billion invested in 377 deals during the first three quarters of 2019. This represented an increase in deal value of 41%, compared to the same period in 2018. Buyout and related funds in Canada raised over $17 billion in the first three quarters, up 169% year over year.

Fundraising trends

Fundraising remained active in 2019. As reported by Prequin, there is now estimated to be approximately $2 trillion in capital under management or “dry powder” globally, with over half that amount targeting North America. Despite the need for sponsors to deploy that capital, the private capital markets showed continuing strength as sponsors continued to participate in a range of private offerings and capital raising transactions. Several sponsors returned to market and a number of new offerings raised fresh capital from first-time funds...