CVCA 2019 Private Equity Canadian Market Overview: 2019 PE Investment Elevated by Q4 Surge

2019 PE performance driven by deals with Autodata Solutions, Garda World Security and WestJet Airlines

TORONTO--()--The Canadian Venture Capital and Private Equity Association (CVCA) today released its year-end report focused on Canadian private equity (PE). The closing of Garda World Security and WestJet Airlines in the last quarter raised PE investment in 2019 to a total disclosed value of CAD $19B over 526 deals, 16% less than the CAD $22.7B in 2018, and 38% higher than the previous low of CAD $13.8B in 2016.

For the second year in a row, the sum of mega-deals exceeded the sum of all other deals combined: CAD $11.6B out of CAD $19B in 2019 and CAD $14.4B out of CAD $22.7B in 2018. There were three $1B+ mega-deals this year which included:

  • $5.2B recap of Montreal-based Garda World Security Corp. by a European investor
  • $5B buyout of Calgary-based WestJet Airlines Ltd. by ONEX
  • $1.4B buyout of London-based Autodata Solutions Inc. by a US PE firm

“Private Equity continues to pick up momentum as an attractive source of value-add financing for growing companies in the Canadian market,” said Kim Furlong, Chief Executive Officer, Canadian Venture Capital and Private Equity Association. “Canadian PE offers attractive returns and the opportunity to truly make a positive impact across the country as investors and investees grow Canadian companies together.”

There were 111 PE growth deals in 2019 which accounted for a fifth of all deal flow totalling $1.5B (8% share of total dollars). These included the following disclosed deals:

  • $102M investment by BDC Capital Inc., Fondaction CSN and Fonds de solidarité FTQ in Laval-based JLD-Laguë Group, with 400 employees in Montreal, Estrie, Laval, Laurentides, Saguenay and Ontario
  • $95M by a US investor in Vancouver-based PDFTron Systems Inc., a female-founded tech company employing 47 employees
  • $91M investment by InstarAGF Asset Management and PFM Capital Inc. in Calgary-based Steel Reef Infrastructure Corp. which employs 110 people

24% of all PE investment in 2019 went into companies in the industrial and manufacturing sector, 2% higher than its share in 2018 and 4% higher than its 2017 share. The ICT sector maintained its deal flow in 2019 with a 17% share of PE Investment.

Read the full 2019 Private Equity Canadian Market Overview here.

About the CVCA

Our Vision

A thriving Canadian economy driven by private capital.

Our Mission

CVCA’s mission is to help our members fuel the economy of the future by growing the businesses of today. We do this by supporting and connecting a vibrant private capital industry with advocacy, research, and education.

CVCA is also the nation’s ultimate resource for data on Canadian private capital investments. Please visit: http://www.cvca.ca.

Contacts

For more information or to arrange an interview, please contact:
Jon Jackson
Head of Communications
416-487-0519 x 201
416-553-1142 (cell)
jjackson@cvca.ca

Izadella Sta Romana
Marketing and Brand Coordinator
416-487-0519 x 204
647-228-9244
istaromana@cvca.ca

Release Summary

CVCA 2019 Private Equity Canadian Market Overview: 2019 PE Investment Elevated by Q4 Surge

Contacts

For more information or to arrange an interview, please contact:
Jon Jackson
Head of Communications
416-487-0519 x 201
416-553-1142 (cell)
jjackson@cvca.ca

Izadella Sta Romana
Marketing and Brand Coordinator
416-487-0519 x 204
647-228-9244
istaromana@cvca.ca