TORONTO, March 4, 2014 /CNW/ - Deal-making activity in Canada's buyout
and related private equity (PE) market showed moderate growth in 2013
with disclosed values of transactions totaling $12.3 billion as of
December 31st, up 5% from the $11.8 billion reported in 2012, but still
enough to make 2013 the highest since 2008. In contrast fundraising in
2013 was the highest since 2006 with new capital committed totaling
$16.1 billion. These were among the findings of a statistical report
released today by CVCA- Canada's Venture Capital & Private Equity
Association and research partner Thomson Reuters.
Transactional volume was slightly lower on a year-over-year basis.
Control-stake acquisitions, growth-related and other PE deals
(announced and completed) in the domestic market totaled 320 in 2013,
or 4% below the number of deals done in 2012.
Canadian buyout-PE market activity received a significant bounce in the
final three months of 2013, when 105 transactions accounted for
disclosed values totaling $7.7 billion. Dollar flows in this period
were responsible for more than 60% of total flows reported for the
whole of last year.
The growth spurt in market activity in Canada between October and
December was reflected in a number of major PE-backed transactions.
These included the final close of Toronto-based Hudson's Bay's add-on
acquisition of Saks and the final close of Toronto-based LifeLabs
Medical Laboratory Services' add-on acquisition of CML Healthcare.
Other important deals in this period included the announced buyout of
Québec City-based Atrium Innovations and the announced take-private
deal involving Mississauga-based Patheon.
At the end of December, five large-cap transactions sized $500 million
or greater captured over half of all disclosed disbursements made in
the Canadian market. Deals sized between $100 million and $500 million
took the second largest share of the total, or 30%, while deals sized
less than $100 million accounted for the balance.
Commenting on the results, Peter van der Velden, President of the CVCA
and Managing General Partner of Lumira Capital Corp. noted "2013 was an
outstanding year for private equity in Canada with the sector enjoying
continued growth in the value of private equity investment, continued
breadth in the range of businesses funded by private equity and of
course a record year for fund raising."
Trends by Sector
Canadian manufacturing and processing companies accounted for the
largest share of buyout-PE deal-making last year, or 16% of total
transactions. In second spot was market activity involving oil and gas
businesses, which garnered a 12% share of the reported number in 2013,
followed by mining-related activity, which took an 11% share.
Trends in Fundraising
The fundraising activity of Canadian buyout, mezzanine and other PE
firms in 2013 broke all prior annual market records. New capital
committed to partnerships and other fund offerings totaled $16.1
billion at the end of December, which is more than triple the $4.9
billion committed to funds in 2012. Indeed, fundraising activity last
year was the highest since 2006 - the last record-breaking year in the
domestic market. It's worth noting that three funds accounted for 60%
of the total funds raised in 2013.
New commitments went to 35 Canadian funds, many of which saw significant
increases in size relative to predecessor funds, a trend that helped
drive the much larger fundraising totals of 2013. The number of
successful fund-raisers was also up from the year before, when activity
was led by 27 funds.
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The CVCA is the voice of Canada's venture capital and private equity
industry. The CVCA's members manage the vast majority of private
capital that is designated to grow Canadian businesses. The CVCA
fosters professional development, networking, communication, research
and education, and represents the venture capital and private equity
industry in public policy matters. The CVCA was founded in 1974. www.cvca.ca
SOURCE: CVCA - Canada's Venture Capital & Private Equity Association
For further information:
To arrange an interview with Peter van der Velden, President of the CVCA and Managing General Partner of Lumira Capital Corp, or Mike Woollatt, CVCA's CEO, please contact Lauren Linton, Director of Marketing, firstname.lastname@example.org .