A new industry report reveals that Canada’s private equity sector has hit an unprecedented milestone, reaching $56.5 billion in deal value during the first nine months of the year. This marks a dramatic jump above pre-pandemic activity levels, signaling renewed confidence across the investment landscape.
According to the Canadian Venture Capital and Private Equity Association (CVCA), the sector completed 483 transactions, showcasing strong investor appetite despite financial market uncertainties.
Major Privatization Deals Lead the Momentum
The CVCA notes that the surge was largely fuelled by a handful of large-scale privatization deals. These transactions reflect a growing trend of companies distancing themselves from what the association calls “volatile public markets.”
Biggest Deals of the Year
Several headline-making agreements played a major role in lifting the year’s totals:
- Garda World Security Corp. was taken private by its management team in a massive $14-billion transaction.
- An Abu Dhabi sovereign wealth fund completed a $12.1-billion acquisition of CI Financial.
- La Caisse purchased Innergex Renewable Energy Inc. for $10 billion, reinforcing interest in Canada’s clean-energy sector.
These large deals significantly influenced the national average size, highlighting the strong involvement of global investors.
Mid-Market Deals Still Dominate
While major privatization moves captured headlines, the CVCA emphasizes that most activity occurred in smaller price ranges. Roughly 86% of all private equity deals were valued at under $25 million, showcasing ongoing momentum in Canada’s mid-market investment space.
This broad distribution of deals points to a healthy and balanced private equity environment, not solely dependent on mega-transactions.
Sharp Rebound From Record Lows in Previous Years
The rapid rise in deal value represents a major turnaround from recent lows. Full-year totals plummeted to $14.7 billion in 2022 and $10 billion in 2023, the weakest numbers in several years.
This year’s strong performance signals renewed investor interest after a slow period marked by economic uncertainty and shifting market conditions.
