Canadian deals, fundraising up in 2010

Investment activity and funds raised in Canada through Q3 2010 exceeded levels from the same period last year, though fundraising is still on track to come in below last year’s $2.1bn.

Canadian investment activity and fundraising during the first three quarters of 2010 exceeded levels during the same period last year, according to figures released by Canada’s Venture Capital & Private Equity Association (CVCA) and Thomson Reuters.

During the first nine months of the year there were 88 completed and pending Canadian transactions, 35 of which had disclosed values totaling $2.4 billion, exceeding the 74 deals during the same period in 2009, of which 31 had disclosed values of $1.9 billion. The 88 total deals through the first three quarters were also just short of the 89 for all of 2009.

In Q3 2010 alone, the 34 completed and pending buyout transactions – 12 of which had disclosed values of $736 million – were smaller in value than the 22 deals in the same period last year, of which five had disclosed transaction sizes of just over $1 billion. 

On the fundraising side, Canadian firms raised $637 million in the first three quarters of 2010, compared to $452 million raised through Q3 2009. Despite the uptick compared to the same period last year, the overall fundraising pace for the first nine months of 2010 suggests that year end levels will not reach the $2.1 billion in funds raised in 2009, president of the CVCA Gregory Smith told PEO.

Based on the uptick in investment activity, however, Canadian private equity investment could still have a banner year. “Other than the height of the market in 2007, we’re on pace to actually have the second best year of investment activity level in Canada,” Smith said.