private equity canadian market overview // q3 2020 · 2021. 7. 6. · semios british columbia...

PRIVATE EQUITY CANADIAN MARKET OVERVIEW

// Q3 2020

PRIVATE EQUITY CANADIAN MARKET OVERVIEW // Q1 2020 | 2

source:

CONTENTS

PARTICIPATING DATA CONTRIBUTORS .......................................................................3 FOREWORD ......................................................................................................................4 PRIVATE EQUITY HIGHLIGHTS ......................................................................................5 DATA VISUALIZATIONS ...................................................................................................6 PRIVATE EQUITY HEAT MAP // ALL PE DEALS .................................................................................... 6 PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY ............................................... 7 PRIVATE EQUITY HEAT MAP // PE GROWTH DEALS ONLY ............................................................. 8 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY .................................................................. 9 TOP 10 DISCLOSED CANADIAN PE DEALS ........................................................................................ 10 PE ACTIVITY BY DEAL SIZE ...................................................................................................................... 11 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES .............................................................. 12 PE SECTOR BREAKDOWN ....................................................................................................................... 13 PE EXITS ........................................................................................................................................................ 14 TOP DISCLOSED CANADIAN PE EXITS ............................................................................................... 15MOST ACTIVE PE INVESTORS ................................................................................................................ 16

PRIVATE EQUITY METHODOLOGY ............................................................................. 17 AUTHORS, ABOUT CVCA AND CONTACT INFO ..................................................... 19


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If you would like to have your firm included in future reports, please contact [email protected]

PARTICIPATING DATA CONTRIBUTORS CVCA thanks the following firms

who participated in its Q3 2020 survey.

7 Gate Ventures

Accelerate Fund

AmorChem Fund

Amplify Capital

Amplitude Ventures

Anges Quebec

Anges Quebec Capital

Arctern Ventures

AVAC Ltd.

Azure Capital Partners

BCF Ventures

Brightspark Capital

CIBC Innovation Banking

CIC Capital Ventures

Clanton Capital Inc.

Conexus Venture Capital

CTI Life Sciences

Dash40 Ventures

District Ventures LP

Emerald Technology Ventures

EnerTech Capital

Espresso Capital Ltd.

Evok Innovations

Ferst Capital

FACIT

First Ascent Ventures

Fonds Innovexport

Framework Ventures

Freycinet Ventures

Good News Ventures

GreenSoil Investments

Highline Beta

Hike Ventures

iGan Partners

Information Venture Partners

Innovacorp

inovia Capital

Island Capital Partners

Klass Capital

Luge Capital

Lumira Ventures

MaRS IAF

McRock Capital

Metiquity

Mistral VP

NAventures (National Bank of Canada)

New Brunswick Innovation Foundation

Panache Ventures

Pangaea Ventures

Quark Venture

Radical Ventures

Real Ventures

Relay Ventures

Renewal Funds

Rhino Ventures

Roadmap Capital

Round 13

Sectoral Asset Management Inc.

Tandem Expansion

TandemLaunch

TELUS Ventures

Top Renergy

Trellis Capital

Vanedge Capital

Partners

Venbridge Ltd.

Version One Ventures

White Star Capital

Whitecap Venture Partners

Yaletown Partners

Venture Capital FirmsAIP Private Capital

ARC Financial

Ardenton Capital Corporation

BDC Growth Equity

BMO Capital Partners

Bond Capital

CAI Capital Partners

Canadian Business Growth Fund

Capital Financière Agricole

Clairvest Group Inc.

Clearspring Capital Partners

First West Capital

Founders Group of Food Companies Inc.

Fulcrum Capital Partners

Highland West Capital

InstarAGF Asset Management

Ironbridge Equity Partners

Kayne Capital

Killick Capital Inc.

Lex Capital Management

m2s Capital

Mink Capital

Mosaic Capital Corporation

Novacap Management Inc.

ONEX Corporation

PenderFund Capital Management

Persistence Capital Partners

PFM Capital Inc

PRIVEQ Capital Funds

Regimen Equity Partners

Seafort Capital

Searchlight Capital Partners

Tricor Pacific Capital Ltd.

TriWest Capital Partners

Vistara Capital Partners

Westcap Mgt. Ltd

Western Investment Company of Canada Limited

XPND Capital

Private Equity & LSVCC FirmsAlberta Enterprise Corporation

BDC Venture Capital

Bluesky Equities

Caisse de depot et placement du Quebec

Desjardins Capital

Fondaction

Fonds de solidarite FTQ

Fonds de solidarité FTQ (Regional)

HarbourVest Partners (Canada) Ltd

Investissement Quebec

Kensington Capital Partners Ltd.

Northleaf Capital Partners

Ontario Capital Growth Corporation

Ontario Teachers’ Pension Plan

Teralys Capital

Limited Partners


source:

FOREWORD

Slow Third Quarter Drives Canadian PE Investment 25% Lower Than the Four-Year Average

CAD $1.4B was invested over 155 deals in the third quarter of 2020 which is 27% lower than the amount in Q3 2020 (CAD $1.9B over 177 deals). The YTD activity is tracking 25% below the four-year average across 2015-2019 in both dollars invested and deals (CAD $21B across 565 deals).

There were 15 PE-backed exits in the third quarter, a significant increase from the 11 exits in the entire first half of 2020. The most notable exit in Q3 was Nuvei’s IPO on the TSX for a total market capitalization of CAD $4.6B, backed by Novacap Management, Fonds de solidarité FTQ, and Caisse de dépôt et placement du Québec.

“Despite the uncertainty due to the COVID-19 pandemic, Canadian private equity firms are adapting to the evolving conditions,” said Kim Furlong, CEO, Canadian Venture Capital and Private Equity Association. “Given Canadian PE’s long-term investment horizon, PE fund managers are well-positioned to help our businesses on a path to economic recovery.”

There were no megadeals (CAD $500M+) in the third quarter. The largest deal in Q3 was the CAD $354M growth investment in Toronto-based Superior Plus by Brookfield Asset Management.

Private Equity Exit Rate Picks Up


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PRIVATE EQUITY HIGHLIGHTS // Q3 2020

Key Findings Deal size in Q3:

<$25M: 37 deals, YTD 286 deals at $1.1B$25M-$100M: 6 deals, YTD 39 deals at $2B$100M+: 3 deals, YDT 14 deals at $8.6B

PE Dollars invested by Geography:Province:

Quebec: 43% ($4.9B across 261 deals)New Brunswick: 23% ($2.7B across 6 deals)Alberta: 19% ($2.2B across 28 deals)Ontario: 12% ($1.3B across 91 deals)

Municipalities:Montreal: 13% ($1.6B across 105 deals)Toronto: 9% ($1.1B across 79 deals)Quebec City: 8% ($942 across 23 deals)

Dollars invested by Sector::Information, Communications & Technology: 28% ($3.3B

across 82 deals)Energy: 24% ($2.8B across 10 deals)Industrial & Manufacturing: 13% ($1.6B across 85 deals)


source:

11

64

12844

26191

$349MBritish

Columbia $2.2BAlberta $56M

Saskatchewan

$1.4BOntario

$5bQuébec

$2.7bNew Brunswick

$35MNova Scotia

$2MNewfoundlandand Labrador

$11.7btotal

446 dealstotal #

PRIVATE EQUITY HEAT MAP ALL PE DEALS // YTD Q3 2020


source:

919

2124

$812MAlberta

$77MOntario

$950MQuébec

$88MBritish

Columbia

1

1

$36MSaskatchewan

NANew Brunswick

1

NANova Scotia

$2Btotal 76 deals

PRIVATE EQUITY HEAT MAP BUYOUT & ADD-ON DEALS ONLY // YTD Q3 2020

total #


source:

31

12

707

$6MSaskatchewan

$172MAlberta

$191MBritish

Columbia

$637MOntario

$2.8BQuébec

4

$6MNew Brunswick

1

$3.8btotal

125 deals

PRIVATE EQUITY HEAT MAP PE GROWTH DEALS ONLY // YTD Q3 2020

total #


source:

QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY

TOTAL:541 DEALS

$13.8B

TOTAL:607 DEALS

$26.3B

TOTAL:590 DEALS

$22.7B

TOTAL:661 DEALS

$19.4B

TOTAL:446 DEALS

$11.7B

2016 2017 2018

$0

$3,000

$4,500

$1,500

$6,000

$9,000

$13,500

$7,500

$12,000

$10,500

$15,000

0

20

40

60

80

100

120

140

160

180

200

Q4Q1

$3,2

21

Q2

$3,3

70

124

146

133

138

Q3

$3,0

38

$4,17

9

Q4

$5,3

29

178

163

152 156

162

124

164178 177

148

Q1

$8,7

80

Q2

$7,4

91

Q3$4

,672

Q1

$6,7

48

Q2

$8,0

57

Q3

$1,9

77

Q4

$5,8

70

Q1

$2,0

71

Q2

$3,0

19

Q3

$1,9

52

Q1

$5,8

73

Q2

$4,4

16

Q3

$1,4

21

Q4

$12,

333

114

142151

145

155

$ Millions Invested # Deals

2019 2020


source:

TOP 10 DISCLOSED CANADIAN PE DEALS // YTD Q3 2020

company name province firms involved in transaction sector $ mil

XPLORNET NEW BRUNSWICK STONEPEAK PARTNERS LP, NORTHLEAF CAPITAL PARTNERS ICT $2,672

ALTAGAS CANADA INC. ALBERTA ALBERTA TEACHERS' RETIREMENT FUND, PSP INVESTMENT BOARD OIL & GAS, POWER $1,005

GROUPE CANAM INC. QUEBEC CAISSE DE DEPOT ET PLACEMENT DU QUEBEC, PLACEMENTS CMI, FONDS DE SOLIDARITÉ FTQ

INDUSTRIAL & MANUFACTURING $840

CONA RESOURCES ALBERTA WATEROUS ENERGY FUND OIL & GAS, POWER $740

SUPERIOR PLUS ONTARIO BROOKFIELD ASSET MANAGEMENT INDUSTRIAL & MANUFACTURING $354

SEVEN ACES ONTARIO TRIVE CAPITAL OTHERS $179

THE FERTILITY PARTNERS ONTARIO PELOTON CAPITAL MANAGEMENT, BMO CAPITAL PARTNERS, MPA MORRISON PARK ADVISORS INC., DELOITTE LLP, HEAL PARTNERS TRUST LIFE SCIENCES $120

SEMIOS BRITISH COLUMBIA MORNINGSIDE GROUP AGRI-FORESTRY $99

XNRGY QUEBEC TOYOTA AI VENTURES, LLC., MILLENNIUM NEW HORIZONS, GRISHIN ROBOTICS INC

INDUSTRIAL & MANUFACTURING $75

There were 13 undisclosed deals totalling $3.2B ommitted from this table.


source:

PE ACTIVITY BY DEAL SIZE // YTD Q3 2020

0

40

80

120

160

200

240

280

320

400

440

480

360

$0

$16,000

$17,600

$19,200

$10

,200

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

20172016 20172016 20172016 2016

$1,2

90

$3,

212

$6,

290

$3,

106

2017

$7,

630

$50

9

$65

3

$3,

278

20172016 20172016

$4,

034

$3,

250

$1,6

27

$1,3

50

$1,0

05

$4,

800

201820182018201820182018

359

48

286

60

3614 114

203 2 0 21 1 1 3

$2,16

7

$2,8

24

$2,6

72

$1,8

29

$1,4

78

2019 YTDQ3 2020

YTDQ3 2020

YTDQ3 2020

YTDQ3 2020

YTDQ3 2020

YTDQ3 2020

364 392

443

37 39 15 829

2019

$1,9

78

2019 $

4,19

42019 2019 2019

$12

,749

$1,7

44

$1,7

24

$1,1

03 $2,0

07 $3,

470

$1,6

45

1 1 141

< $25M $100M - $500M $1B - $2.5B$25M - $100M $500M - $1B $2.5B+

$ Millions Invested # Deals


source:

TOP 10 CANADIAN CITIES ADMINISTRATIVE CENTRES // YTD Q3 2020

Total Deals $ Millions

1. Montréal

2. Toronto

3. Vancouver

4. Québec City

5. Montérégie

6. Calgary

7. Edmonton

8. Saguenay

105

79

27

23

23

18

7

7

$1,550

$1,093

$241

$942

$159

$1,042

$170

$18

#1 montreal $1.6b105 DEALS

2

54

1

7

8 8

36


source:

PE SECTOR BREAKDOWN // YTD Q3 2020

85

82

48

40

35

32

26

26

20

20

12

10

10

# Deals $ Millions

Industrial & Manufacturing

ICT

Business Products & Services

Agri-Forestry

Life Sciences

Automotive & Transportation

Consumer & Retail

Others

Mining & Resources

Financial

CleanTech

Oil & Gas, Power

Real Estate

$1,581

$3,280

$354

$333

$312

$396

$1,027

$381

$478

$100

$137

$2,835

$496

most active sectorindustrial & manufacturing

85 deals


source:

PE EXITS // 2016 - YTD Q3 2020

0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

20172016 20172016 20172016

$1,7

11

201820182018

$3,7

10

2019 YTDQ3 2020

YTDQ3 2020

$7,0

02

$12,

501

$2,8

49

1 45

59

43

137

5

20

9

0 0

2019 2019 YTDQ3 2020

83

$8,5

47

$3,4

08

$2,6

73

$1,6

87

$4,8

00

30 3

$1,8

91

$853

IPO/RTO** M&A* SECONDARY BUYOUT*

* includes transactions with undisclosed values ** IPO valuation Exit Value ($ Millions) # Exits


source:

TOP DISCLOSED CANADIAN PE EXITS // YTD Q3 2020

GFL ENVIRONMENTALCOMPLETED IPOON TSX & NYSE $7.7B#1

seller company name buyer $ milONTARIO TEACHERS' PENSION PLAN, BC PARTNERS, HPS INVESTMENT PARTNERS, LLC, MACQUARIE GROUP LIMITED, HAWTHORN EQUITY PARTNERS LP

GFL ENVIRONMENTAL IPO ON TSX & NYSE $7,731

NOVACAP MANAGEMENT, FONDS DE SOLIDARITÉ FTQ, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC NUVEI IPO ON TSX $4,620

NORTHLEAF CAPITAL PARTNERS XPLORNET STONEPEAK INFRASTRUCTURE $2,672

SWANDER PACE VOORTMAN COOKIES HOSTESS $425

NOVACAP MANAGEMENT INTERLAD HG $347

MANULIFE CAPITAL DYE & DURHAM IPO ON TSX $150

There were 20 deals totalling $83 million excluded from this table.


source:

MOST ACTIVE PE INVESTORS // YTD Q3 2020

100

78

72

22

20

14

11

9

7

# Deals $ Millions*

Fonds de solidarité FTQ

Desjardins Capital

BDC Capital

Investissement Québec

Fondaction

Caisse de dépôt et placement du Québec

BMO Capital Partners

Canadian Business Growth Fund

Novacap Management

$1,729

$997

$374

$2,627

$307

$2,896

$141

$94

$971* Total deal values – includes all participating investors

most active pe firmFONDS DE solidarité FTQ

100 deals


source:

CVCA METHODOLOGY // PRIVATE EQUITY

PRIVATE EQUITY DATA:Dataset includes only completed private equity deals (announced but yet to be completed deals are not included)

BUYOUT INVESTMENT FOR THE CONTROL OF A PORTFOLIO COMPANY, INCLUDING PLATFORM CREATION, SECONDARY BUYOUT

GROWTH SIGNIFICANT MINORITY INVESTMENT INTO A PORTFOLIO COMPANY, THROUGH NEW CAPITAL INFUSION AND RECAPITALIZATION

ADD-ON CORPORATE ACQUISITIONS BY MAJORITY CONTROLLED PE BACKED PORTFOLIO COMPANIES

DEBT DEBT INVESTMENT INTO PORTFOLIO COMPANIES

INFRASTRUCTURE INVESTMENTS INTO DEVELOPMENT AND MANAGEMENT OF INFRASTRUCTURE ASSETS BUT PE DOES NOT OWN THE UNDERLYING ASSETS

AGRI-FORESTRY AGRICULTURE, FOODS AND FORESTRY

AUTOMOTIVE & TRANSPORTATION TRANSPORTATION, LOGISTICS AND RELATED SERVICES

BUSINESS PRODUCTS & SERVICES BUSINESS PRODUCTS AND SERVICES

CLEANTECH ENERGY AND FUEL TECHNOLOGIES, EFFICIENCY AND CONSERVATION, RENEWAL ENERGY, ENVIRONMENTAL TECHNOLOGIES AND OTHER ENERGY AND ENVIRONMENTAL PRODUCTS AND SERVICES

pe deal type

pe sectors


source:

CVCA METHODOLOGY // PRIVATE EQUITY

continued

CONSUMER & RETAIL CONSUMER PRODUCTS AND SERVICES, BRICK AND MORTAR RETAIL

FINANCIAL FINANCIAL SERVICES

ICT COMPUTER HARDWARE/SOFTWARE & SERVICES, INTERNET SOFTWARE & SERVICES, ECOMMERCE, ELECTRONIC & SEMICONDUCTOR, MOBILE & TELECOM AND SERVICES

INDUSTRIAL & MANUFACTURING EQUIPMENT AND MATERIAL MANUFACTURING

LIFE SCIENCES BIOTECH, MEDICAL DEVICES, PHARMACEUTICALS, EHEALTH, HEALTHCARE PRODUCTS AND SERVICES, AND OTHER MEDICAL RELATED PRODUCTS AND SERVICES

MINING & RESOURCES NON OIL AND GAS NATURAL RESOURCES

OIL & GAS, POWER OIL & GAS, POWER AND UTILITIES

REAL ESTATE PROPERTY DEVELOPMENT AND MANAGEMENT

pe sectors

ABOUT AND CONTACT

About CVCAOUR VISIONA 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 busi-nesses 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 cvca.ca

@CVCACanada CVCA

CVCA - Canadian Venture Capital and Private Equity Association

372 Bay St., Suite 1201 Toronto, ON M5H 2W9

To obtain estimates for additional custom CVCA Intelligence data reports please contact [email protected]

AuthorsCHRISTIANE WHERRY vICE PRESIDENT, [email protected]

david kornacki associate, research & [email protected]

jon jackson head of [email protected]

Izadella sta. romana marketing & brand [email protected]

private equity canadian market overview // q3 2020 · 2021. 7. 6. · semios british columbia...

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