vc & pe canadian market overview // h1 2018 · 2018-10-11 · venture capital & private...

VC & PE CANADIAN MARKET OVERVIEW

// H1 2018

VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // H1 2018 | 2

CONTENTS

PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3

FOREWORD ...................................................................................................................................... 4

VENTURE CAPITAL CANADIAN MARKET OVERVIEW .................................................... 5 VENTURE CAPITAL HIGHLIGHTS ................................................................................................................................ 6

VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 7 QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY ......................................................................... 8 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................. 9 TOP 10 DISCLOSED CANADIAN VC DEALS ........................................................................................................ 10 TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES .................................................................... 11 VC SECTOR BREAKDOWN ............................................................................................................................................. 12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 VC EXITS ....................................................................................................................................................................................... 14 TOP DISCLOSED VC EXITS .............................................................................................................................................. 15MOST ACTIVE VC FIRMS // FUNDS ........................................................................................................................ 16

PRIVATE EQUITY CANADIAN MARKET OVERVIEW ...................................................... 17 PRIVATE EQUITY HIGHLIGHTS .................................................................................................................................... 18

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY ............................................... 19

PRIVATE EQUITY HEAT MAP // ALL PE DEALS ............................................................................................. 20 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY ....................................................................... 21 TOP 10 DISCLOSED CANADIAN PE DEALS ....................................................................................................... 22 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 23 TOP CANADIAN CITIES // ADMINISTRATIVE CENTRES .......................................................................... 24 PE SECTOR BREAKDOWN .............................................................................................................................................. 25 PE EXITS ....................................................................................................................................................................................... 26 TOP 10 DISCLOSED CANADIAN PE EXITS .......................................................................................................... 27MOST ACTIVE PE INVESTORS .................................................................................................................................... 28

CVCA METHODOLOGY ............................................................................................................. 29 VENTURE CAPITAL .............................................................................................................................................................. 29 PRIVATE EQUITY ............................................................................................................................................................. 30, 31

AUTHORS, ABOUT CVCA AND CONTACT INFO ............................................................. 32


PARTICIPATING DATA CONTRIBUTORS

Alberta Teachers' Retirement Fund

Alberta Enterprise Corporation

BDC Capital Inc.

Bluesky Equities Ltd.

Caisse de dépôt et placement du Québec

Capital Régional et Coopératif Desjardins

Dancap Private Equity Inc.

Fondaction CSN

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

HarbourVest Partners (Canada) Ltd.

Investissement Québec

Kensington Capital Partners Limited

Ontario Teachers' Pension Plan

Teralys Capital

PARTICIPATING LIMITED PARTNERS

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

PARTICIPATING PRIVATE EQUITY & LSVCC FIRMS

32 Degrees Capital

AIP Private Capital

ARC Financial

Ardenton Capital Corporation

ATB Capital

Birch Hill Equity Partners

Brookfield Asset Management

CAI Capital Management Co.

Clairvest Group Inc.

Clearspring Capital Partners

End of Petroleum

First West Capital

Fulcrum Capital Partners

GrowthWorks Capital

Hawthorne Capital Inc.

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.

OMERS Private Equity Inc.

Parallel 49 Equity

Persistence Capital Partners

PFM Capital Inc

PRIVEQ Capital Funds

Regimen Equity Partners

Roynat Capital Inc.

Seafort Capital

Searchlight Capital Partners

Signal Hill Equity Partners

TIMIA Capital Corp

TriWest Capital Partners

Westcap Mgt. Ltd.

Western Investment Company of Canada Ltd.

XPND Capital

Accelerate Fund

Amorchem Venture Fund

Anges Québec

Anges Québec Capital

AVAC Ltd.

Avrio Ventures Management Corp

Azure Capital Partners

Bioindustrial Innovation Canada

Brightspark Ventures

CIBC Innovation Banking

CTI Life Sciences

Cycle Capital Management/Ecofuel

Emerald Technology Ventures

Epic Capital

Espresso Capital Ltd.

Evok Innovations

Ferst Capital

Fight Against Cancer Innovation Trust

Freycinet Ventures

Golden Venture Partners

Good News Ventures

GreenSoil Investments

HIGHLINE

iGan Partners

Information Venture Partners

Innovacorp

iNovia Capital

Island Capital Partners

Luge Capital

Lumira Ventures

MaRS Catalyst Fund

MaRS IAF

McRock Capital

New Brunswick Innovation Foundation

Northumberland CFDC

OMERS Ventures

OpenText Enterprise Apps Fund

Panache Ventures

Pangaea Ventures

Pelorus Venture Capital Ltd.

Plaza Ventures

Quark Venture

Real Ventures

Relay Ventures

Renewal Funds

Roadmap Capital

Ryerson Futures

ScaleUP Ventures

StandUp Ventures

Tandem Expansion

TandemLaunch

TELUS Ventures

Top Renergy

Trellis Capital

V3-Ventures

Vancouver Founders Fund

Vanedge Capital Partners

VentureLink Funds

Versant Ventures

Version One Ventures

White Star Capital

Whitecap Venture Partners

Yaletown Partners Inc.

PARTICIPATING VENTURE CAPITAL FIRMS

CVCA thanks the following firms who participated in itsQ1 2018 survey.


FOREWORD

Third $1B Quarter In Last Twelve Months Propels Venture Capital Momentum; All Private Equity Segments Slowing With Overall Activity Eclipsed By Two Mega Deals

VENTURE CAPITALVenture capital investment in Canada continued its five-year upward trajectory in the first half of 2018 showing no signs of slowing for the remainder of the year. Almost $1B was invested over 166 deals in Q2, bringing the year-to-date (YTD) total VC investment to $1.7B—7% higher than H1 2017. Q2 2018 is the third time since January 2017 where VC investment in Canada has surmounted $1B.

“Innovation in Canada is enjoying the best venture capital investment climate in well over a decade,” says Mike Woollatt, Chief Executive Officer, Canadian Venture Capital and Private Equity Association. “We’re consistently observing an increase in size and volume of deals at all stages; plus, a welcome resurgence in exits. We’re bracing for 2018 to be another record year.”

There were 16 exits so far in 2018 continuing the rebound from last year. These included the $141M corporate acquisition by Eli Lilly of AurKa Pharma, a TVM Life Sciences Management portfolio company and the $100M transaction in Coveo Solutions Incorporated by a U.S.-based private equity firm.

Keeping pace with the last two years, there were seven mega deals ($50M+) in the first half of 2018, totalling almost a half a billion dollars. Of the seven, Toronto-based Ritual raised $90M in a series C round led by Georgian Partners. Toronto-based ecobee Inc received $80M in series C financing which included participation from Relay Ventures. Ecobee Inc also received a $47M follow-on investment from BDC Capital and Caisse de dépôt et placement du Québec. Toronto-based TouchBistro Inc. raised $72M in a series D round from a syndicate led by OMERS Ventures and included participation from BDC IT Venture Fund and Relay Ventures.

ICT companies continue to receive the majority (64%) of total VC dollars invested in the first half of 2018 ($1.1B over 189 deals) with life sciences ($204M over 48 deals) and cleantech ($192M over 28 deals) companies receiving an equal 12% share.

PRIVATE EQUITYPrivate equity investment in Canada continued its downward trend in the first half of 2018. $7.6B was invested over 146 PE deals in Q2, bringing the year-to-date (YTD) total to $14.5B over 288 deals. So far in 2018, overall investment was bloated by two mega deals ($2.5B+) which made up 69% of total dollars invested. In comparison, mega deals made up only 51% of dollars invested in H1 2017 and 0% in H1 2016.

The two mega deals accounted for three quarters (69%) of YTD investment in 2018 and included the $5.1B recapitalization of Ontario-based GFL Environmental Incorporated by a consortium which included Ontario Teachers’ Pension Plan (OTPP) and the OMERS Private Equity sale of its position in Husky Injection Molding Systems Limited to a U.S. PE firm via a $5B secondary buyout.

“Canadian private equity appears on pace from previous years, however on the dollar side it is increasingly driven by significant deals; suggesting the levels are a bit more tenuous,” says Mike Woollatt, Chief Executive Officer, Canadian Venture Capital and Private Equity Association. “In the absence of a few large deals, activity in the Canadian PE market is being driven substantially by smaller deals as activity shifts to categories with typically smaller deal sizes.”

The momentum in exits also shifted downward in H1 with only 41 exits ($10.5B) compared to 152 exits ($11.5B) in 2017. There were two IPO exits which included Quebec-based IPL Incorporated (TSE: IPLP) with a market cap of $709M, backed by Caisse de dépôt et placement du Québec (CDPQ), Fonds de solidarité (FTQ) and Investissement Québec and ONCAP-backed BC-based Pinnacle Renewable Energy Incorporated (TSE: PL).

Five-year upward trend for VC shows no signs of slowing for the remainder of 2018; PE mega deals in H1 doubles its share compared to the three previous years

http://gflenv.com/

https://www.otpp.com/

https://omersprivatemarkets.com/

http://www.husky.co/EN-US/

http://www.husky.co/EN-US/

http://www.ipl-plastics.com/en

https://www.fondsftq.com/en/accueil.aspx

https://www.fondsftq.com/en/accueil.aspx

http://www.investquebec.com/international/en

https://www.oncap.com/

https://pinnaclepellet.com/

https://pinnaclepellet.com/


VENTURE CAPITALCANADIAN MARKET

OVERVIEW // H1 2018


VENTURE CAPITAL HIGHLIGHTS // H1 2018

Almost $1B was invested over 166 deals in the second quarter this year, bringing the YTD total VC investment to $1.7B which is 7% higher than the first half of last year. This is the third quarter since the beginning of 2017 where VC investment has surmounted $1B. The five-year upward trend shows no signs of slowing for the remainder of 2018.

The average deal size was $6M, a 28% increase from the previous quarter and 13% higher than the average deal size in the five-year period between 2013-2017 ($5.3M).

The top 10 disclosed deals in H1 amounted to $624M, capturing a 38% share of total dollars invested—the largest share since 2013 where they accounted for 34% of total dollars invested.

The flotilla of $50M+ mega deals continued the same pace as the previous two years: seven deals totalling almost $0.5B and included:

Toronto-based Ritual secured a $90M series C round led by Georgian Partners Inc.

Toronto-based ecobee Inc. closed its series C financing: an $80M round from an investor syndicate that included Relay Ventures and a follow on $47M investment from BDC Capital and Caisse de dépôt et placement du Québec (CDPQ).

Toronto-based TouchBistro Inc. raised a $72M series D round from a syndicate led by OMERS Ventures Management Inc. which included BDC IT Venture Fund and Relay Ventures.

Deals between $1M-$5M captured 14% of total dollars invested, representing a 4% point gain from its share last year.

Ontario-based companies received 55% of investment ($907M), up from their 39% share last year; Quebec-based companies received 19% ($319M) followed closely by BC-based companies with a 17% ($276M) share.

Toronto-based companies received almost half ($793M over 89 deals) of total dollars disbursed, with Vancouver-based companies receiving a 16% ($264M over 38 deals) and Montreal-based companies a 15% share ($254M over 64 deals).

ICT companies grabbed the lion’s share (64%) of total dollars invested in H1 2018 ($1.1B over 189 deals) with life sciences and cleantech companies receiving an equal 12% share ($204M over 48 deals and $192M over 28 deals respectively).

There was a marked increase toward later-stage companies which received 54% ($901M) of total dollars compared to its 41% from last year; early stage companies received 37% ($612M) of investment, down from its 52% share in 2017.

The market for exits continued the rebound from last year with 16 exits which included:

the $141M corporate acquisition of TVM Life Science Management portfolio company AurKa Pharma by Eli Lilly

the $100M transaction in Coveo Solutions Inc. from a US private equity firm

Key Findings:


194

4217 7

116$319m

$907MOntario

$276MBC

$70MAlberta

Québec

Nova Scotia$55M

New Brunswick

Newfoundland& Labrador

$21M

$4M

$3MSaskatchewan

$7MManitoba

1213Prince Edward

Island

$1M3

3

$1.7btotal308 dealstotal #

VENTURE CAPITAL HEAT MAP // H1 2018


0

20

40

60

80

100

120

140

160

180

200

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1000

220

240

$1,100

$1,200

Q2 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$35

8

$41

4

$6

91

$6

13

$43

2

$6

65

$6

21

$58

5

$9

60

$71

3

110

93

113 122

134

140 142

130

127

147

Q3

$6

82

Q4

$8

41

Q1

$6

48

$9

08

Q3

$1,

159

Q4

$1,

09

9

Q1

$6

66

Q2

$9

96

125134

136

153 155 158

142

166

TOTAL:438 DEALS

$2.1B

TOTAL:546 DEALS

$2.3B

TOTAL:533 DEALS

$3.2B

TOTAL:602 DEALS

$3.8B

TOTAL:308 DEALS

$1.7B

$ Millions Invested

# Deals

2014 20162015 2017 2018

QUARTER-OVER-QUARTERVC INVESTMENT ACTIVITY


Total Deals $ Millions

< $100K

$100 - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

12

68

44

101

52

10

7

$1

$16

$30

$232

$600

$290

$493

VC ACTIVITY BY DEAL SIZE // H1 2018

$1m-$5mwere between

one-third of all deals


TOP 10 DISCLOSED CANADIAN VC DEALS // H1 2018

COMPANY NAME PROVINCE DISCLOSED VC FIRM(S) SECTOR STAGE $ MIL

RITUAL ONTARIO GEORGIAN PARTNERS INC., GREYLOCK PARTNERS, INSIGHT VENTURE PARTNERS, MISTRAL VENTURE PARTNERS INC. ICT LATER STAGE VC $90

ECOBEE, INC. ONTARIO AMAZON.COM NV INVESTMENT HOLDING LLC, ENERGY IMPACT PARTNERS, RELAY VENTURES, THOMVEST VENTURES, INC. CLEANTECH LATER STAGE VC $80

TOUCHBISTRO INC. ONTARIO BDC IT VENTURE FUND, J.P. MORGAN PARTNERS, NAPIER PARK FINANCIAL PARTNERS, OMERS VENTURES MANAGEMENT INC., RELAY VENTURES ICT LATER STAGE VC $72

WEALTHSIMPLE FINANCIAL INC. ONTARIO POWER FINANCIAL CORPORATION ICT LATER STAGE VC $65

LEAGUE INC. ONTARIOBDC IT VENTURE FUND, OMERS VENTURES MANAGEMENT INC., QUANTUM VALLEY INVESTMENTS, RBC VENTURE PARTNERS, REAL VENTURES, TELUS VENTURES, WITTINGTON INVESTMENTS, LTD.

OTHERS EARLY STAGE VC $62

BREATHER PRODUCTS INC. QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), MENLO VENTURES, TEMASEK HOLDINGS (PRIVATE) LIMITED ICT LATER STAGE VC $59

ECOBEE, INC. ONTARIO BUSINESS DEVELOPMENT BANK OF CANADA (BDC), CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) CLEANTECH LATER STAGE VC $47

ELASTIC PATH SOFTWARE INC. BC BDC IT VENTURE FUND, SAGEVIEW CAPITAL LP, YALETOWN PARTNERS INC. ICT LATER STAGE VC $43

UBERFLIP ONTARIO UPDATA PARTNERS ICT LATER STAGE VC $41

* THERE WAS 1 UNDISCLOSED DEAL NOT INCLUDED IN THIS LIST


TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // H1 2018 #1 toronto

$793M 89 DEALS $793

$254

$264

$32

$81

$27

$50

$18

$4

$38


1. Toronto

2. Montréal

3. Vancouver

4. Calgary

5. Kitchener, Waterloo, Cambridge

6. Ottawa

7. Halifax

8. Laval

9. St. John’s (NF)

10. Edmonton

89

64

38

11

10

10

9

7

7

6

15

2

10

4

6

39

78


0

40

80

120

160

200

240

280

320

400

360

440

520

480

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

$2,600

2016 2017 2017 2017 201720152014 201620152014 201620152014 20152014

$1,

948

$20

8

$18

5

2016 H12018

H12018

H12018

H12018

276

329

331

381

113

104

78

$48

8 $72

1

$73

3

$70

5

$1,

342

$1,

347

106

4847 44 35 28 14

2027 25 15

$17

7

$13

8

47

$27

$42

$2,

464

$19

2

$79

$40

9

$9

8

$1,

06

5

189

$20

4

VC SECTOR BREAKDOWN // 2014-H1 2018

ICT CleanTechLife Sciences AgriBusiness

$ Millions Invested

# Deals


VC STAGE BREAKDOWN // 2014-H1 2018

0

30

60

90

120

150

180

210

240

300

270

330

360

$0

$175

$350

$525

$700

$875

$1,050

$1,225

$1,400

$1,575

$1,750

$1,925

$2,100

201620152014 201620152014 201620152014

$13

6

$15

9

$21

4

$8

60

$1,

06

8

$1,

210

$9

05

$1,

570

$1,

99

3

$1,

403

201720172017

139

180 178

179

220

260

235

97

117135

93

154

106

$1,

572

204

$23

6

H12018

$14

2

H12018

$6

12

H12018

$9

01

97

Seed Early Stage Later Stage

$ Millions Invested

# Deals


VC EXITS* // 2014-H1 2018

M&A IPO/RTO**

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES

** MARKET CAP AT TIME OF IPO/RTO

$ Millions Invested

# Deals

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

0

5

10

15

20

25

30

35

40

50

45

201620152014 201620152014

$50

3

$1,

392

$58

4

$1,

00

820172017

$32

6

H12018

H12018

29

41

30

7 6

0 0

32

16

3

$1,

051

$2,

150

$2,

945


TOP DISCLOSED VC EXITS // H1 2018

VC INVESTORS COMPANY SECTOR EXIT TRANSACTION ACQUIRED BY $ MIL.

TVM LIFE SCIENCE MANAGEMENT INC. AURKA PHARMA LIFE SCIENCES M&A ELI LILLY $141

TANDEM EXPANSION FUND, FONDS DE SOLIDARITÉ FTQ, INVESTISSEMENT QUÉBEC, BDC CAPITAL, PROPULSION VENTURES, FIER SUCCÈS, ACCÈS CAPITAL

COVEO SOLUTIONS INC. ICT M&A EVERGREEN COAST CAPITAL $100

THERE WAS 1 UNDISCLOSED EXITS OVER $50M IN H1 2018


MOST ACTIVE VC FIRMS // FUNDS // H1 2018

MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

REAL VENTURES 33 $193

PANACHE VENTURES 17 $22

CYCLE CAPITAL MANAGEMENT/ECOFUEL 13 $78

INOVIA CAPITAL INC. 13 $63

YALETOWN PARTNERS INC 8 $98

GOLDEN VENTURE PARTNERS 6 $43

PLAZA VENTURES 6 $42

SCALEUP VENTURES 6 $20

GOOD NEWS VENTURES 6 $18

MOST ACTIVE FIRMS IN VC DEBT DEALS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

ESPRESSO CAPITAL LTD. 26 $25

DESJARDINS CAPITAL 10 $3

TIMIA CAPITAL CORP 4 $5

CIBC INNOVATION BANKING 2 $65

BDC CAPITAL INC. 2 $2

FONDS DE SOLIDARITÉ FTQ 2 $1

MOST ACTIVE PENSION, RETAIL, CORPORATE & OTHER PUBLIC FUNDS # ROUNDS

SIZE OF TOTAL ROUNDS*

(CDN$ MIL)

DESJARDINS CAPITAL 27 $62

FONDS DE SOLIDARITÉ FTQ 14 $80

WESTCAP MGT. LTD. 4 $10

OMERS VENTURES MANAGEMENT INC. 3 $143

MOST ACTIVE GOVERNMENT FUNDS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

BDC CAPITAL 22 $307

NEW BRUNSWICK INNOVATION FOUNDATION (NBIF) 13 $22

MARS IAF 10 $11

INNOVACORP 9 $26

BDC IT VENTURE FUND 7 $166

BDC INDUSTRIAL, CLEAN AND ENERGY TECHNOLOGY (ICE) VENTURE FUND 6 $44

ANGES QUÉBEC CAPITAL 6 $22

* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS * * BDC HEALTHCARE FUND - 1 DEAL, $6M; BDC IT VENTURE FUND - 7 DEALS, $166M; BDC ICE FUND - 6 DEALS, $44M

# Rounds

Real Ventures

Desjardins Capital

BDC Capital

Panache Ventures

BDC Sector Funds**


Cycle Capital Management/Ecofuel

iNovia Capital Inc.

New Brunswick Innovation Foundation (NBIF)

MaRS IAF

33

27

22

17

14

14

13

13

13

10

Size of Total Rounds* (Cdn$ mil)

$193

$62

$307

$22

$216

$80

$78

$63

$22

$11


PRIVATE EQUITYCANADIAN MARKET

OVERVIEW // H1 2018


$7.6B was invested over 146 PE deals in Q2 2018 bringing the YTD total to $14.5B over 288 deals.

Two mega deals accounted for a lopsided share of investment (69%) in the first half of 2018—more than double the one-third share mega deals have typically captured in any of the three previous years:

the $5.1B recapitalization of Ontario-based GFL Environmental Inc. by an investor consortium that included Ontario Teachers’ Pension Plan (OTPP)

OMERS Private Equity selling its stake in Husky Injection Molding Systems Ltd. to a US PE firm via a $5B secondary buyout

Propelled by the Husky deal, the amount invested in secondary buyouts has already exceeded the total for each of the last five years

Deal activity in the small end of the market segment (deals less than $25M) garnered 65% of all deals, higher than last year’s 60% share. Deals between $25M-$100M captured a 7% share of deals, down from the 11% last year.

17% (50 deals totalling $1.9B) of all PE deals went to Montreal-based companies, with Toronto-based companies receiving a 14% share (41 deals totalling $10.5B).

A little over a fifth (22% or 64 deals) of PE deals this year have been closed in the industrial & manufacturing sector, with ICT companies receiving the second largest share (16% or 45 deals).

The pace of PE exits slowed with only 41 exits (totalling $10.5B) compared to last year with 152 exits (totalling $11.3B) with two IPO exits:

Quebec-based IPL Inc., backed by Caisse de dépôt et placement du Québec (CDPQ), Fonds de solidarité (FTQ) and Investissement Québec, completed its IPO on TSX with a market cap of $709M

ONCAP-backed BC-based Pinnacle Renewable Energy Inc. completed its IPO on TSX with a market cap of $370M

PRIVATE EQUITY HIGHLIGHTS // H1 2018

Key Findings:


12615

1 3

$44Mna

$91M

$630m

$0M

$5.3bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

26

naManitoba

NewBrunswick

na

1 1

$6.1btotal

65 dealstotal #

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY // H1 2018


8 3

11

1772421

$304m$23m

$214m

$3.3b

na

$10.7bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

53

naManitoba na

NewBrunswick

$14.5btotal 288 dealstotal #

PRIVATE EQUITY HEAT MAP // ALL PE DEALS // H1 2018


Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

0

20

40

60

80

100

120

140

160

180

200

$6

,277

$5,

250

$7,

80

4

$22

,851

$7,

053

$1,

86

9

$11

,375

$2,

60

0

$3,

221

$3,

370

64

81

88

101

91

104

117

113

124

145

134

139

$3,

06

8

Q3

$4,

179

Q4

$5,

315

Q1 Q2 Q3 Q4

113

179

166 153

142 146

$8

,812

$7,

554

$4,

68

2

Q1

$6

,940

Q2

$7,

60

7

QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY

TOTAL:334 DEALS

$42.2B

TOTAL:425 DEALS

$22.9B

TOTAL:542 DEALS

$13.8B

TOTAL:611 DEALS

$26.4B

TOTAL:288 DEALS

$14.5B

$ Millions Invested

# Deals

2014 20162015 2017 2018


TOP 10 DISCLOSED CANADIAN PE DEALS // H1 2018

COMPANY NAME PROVINCE FIRMS INVOLVED IN TRANSACTION SECTOR $ MIL.

GFL ENVIRONMENTAL INC. ONTARIOBC PARTNERS, HAWTHORN EQUITY PARTNERS, HIGHBRIDGE PRINCIPAL STRATEGIES, LLC, MACQUARIE RESOURCE CAPITAL CANADA LTD., ONTARIO TEACHERS' PENSION PLAN (OTPP)

CLEANTECH $5,125

HUSKY INJECTION MOLDING SYSTEMS LTD ONTARIO BERKSHIRE PARTNERS LLC, OMERS PRIVATE EQUITY INC., PLATINUM EQUITY, LLC INDUSTRIAL &

MANUFACTURING $4,964

STINGRAY DIGITAL GROUP INC. QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ BUSINESS PRODUCTS & SERVICES $509

NAPEC INC. QUÉBEC FONDS DE SOLIDARITÉ FTQ, OAKTREE CAPITAL GROUP, LLC INDUSTRIAL & MANUFACTURING $320

BORALEX INC. QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ OIL & GAS, POWER $200

POINTCLICKCARE CORP. ONTARIO DRAGONEER INVESTMENT GROUP LIFE SCIENCES $187

ESTRUXTURE QUÉBEC FENGATE CAPITAL MANAGEMENT LTD. ICT $180

ARTIS EXPLORATION LTD. ALBERTA WARBURG PINCUS LLC OIL & GAS, POWER $180

RÉSIDENCES POUR AÎNÉS IMMO 1ERE INC. QUÉBEC DESJARDINS CAPITAL REAL ESTATE $122

COVEO SOLUTIONS INC. QUÉBEC EVERGREEN COAST CAPITAL CORP., TANDEM EXPANSION FUND ICT $100

* THERE WERE 2 UNDISCLOSED DEALS TOTALLING $488M THAT WERE NOT INCLUDED IN THIS LIST


0

40

80

120

160

200

240

280

320

400

360

$0

$1,600

$3,200

$4,800

$6,400

$8,000

$9,600

$11,200

$12,800

$14,400

$16,000

201620152014 201620152014 201620152014 20152014

$8

49

$9

10

$1,

290

$6

,09

3

$6

,321

$3,

212

$5,

86

1

$3,

106 $

4,79

7 $6

,60

1

2016

$7,

630

$50

9

201620152014 201620152014

$10

,910

$4,

782

$4,

034

$3,

250

$3,

300

$4,

80

0

201720172017201720172017

$14

,927

116

183

362

55 56 49 27 3114 10 7 1149

7 3 3 22 1 0 1 2

$2,

80

4

$2,

788

$2,

197

$3,

337

$1,

485

H12018

366

188

67

20

28

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

H12018

$1,

126

H12018

$1,

776

H12018

H12018

H12018

$10

,08

9

$1,

047

1

PE ACTIVITY BY DEAL SIZE // H1 2018

TOTAL:1215 DEALS

$5.6B

TOTAL:247 DEALS

$12.3B

TOTAL:109 DEALS

$23.3B

TOTAL:15 DEALS

$23B

TOTAL:33 DEALS

$22.6B

TOTAL:6 DEALS$33.1B

$ Millions Invested

# Deals



1. Montreal

2. Toronto

3. Montérégie

4. Nord-du-Québec / Abitibi-Témis

5. Calgary

6. Saguenay-Lac-St-Jean/Côte-Nord

7. Vancouver

8. Québec

9. Bas-Saint-Laurent

10. Chaudière-Appalaches

50

41

21

16

15

14

13

11

11

10

$1,904

$10,544

$48

$38

$287

$123

$124

$285

$46

$142

TOP CANADIAN CITIES // ADMINISTRATIVE CENTRES // H1 2018 #1 montréal

$1.9b 50 DEALS

2

5

10

9

4

31

76

8


64

45

23

28

29

20

14

12

12

23

11

5

2

# Deals $ Millions

Industrial & Manufacturing

ICT

Life Sciences

Consumer & Retail

Business Products & Services

Agri-Forestry

Oil & Gas, Power

Automotive & Transportation

CleanTech

Mining & Resources

Financial

Real Estate

Others

$5,613

$578

$413

$229

$958

$421

$522

$116

$5,234

$222

$95

$147

NA

PE SECTOR BREAKDOWN // H1 2018

industrial & manufacturingmost active sector 64 deals


PE EXITS* // 2014-H1 2018 $ Millions Invested

# Deals

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES

** IPO VALUATION

201620152014 201620152014 201620152014

$8

,055

$2,

553

$1,

711

$4,

80

0

201720172017

$1,

079

H12018

$11

,679

$12

,655

$6

,542

$3,

073

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

5 61 2

5

50 51

55

138

10 7 48

IPO/RTO** M&A Secondary Buyout

H12018

H12018

$5,

212

35

$4,

177

4

$9

30

$2,

161

$3,

408

$1,

672


TOP 10 DISCLOSED CANADIAN PE EXITS // H1 2018

SELLER COMPANY NAME BUYER $ MIL.

BERKSHIRE PARTNERS LLC, OMERS PRIVATE EQUITY INC. HUSKY INJECTION MOLDING SYSTEMS LTD PLATINUM EQUITY, LLC $4,964

PERMIRA, FONDS DE SOLIDARITÉ, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) ATRIUM INNOVATIONS INC. NESTLÉ S.A. $2,973

TORQUEST PARTNERS WSB TITAN GMS INC. $811

CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ (FTQ), INVESTISSEMENT QUÉBEC, ONE51 PLC IPL INC. NA - IPO $709

ONCAP PINNACLE RENEWABLE ENERGY INC. NA - IPO ON TSX $370

Husky Injection Molding Systems Ltd

bought by Platinum Equity, LLC $4,964m#1

* THERE WERE 5 UNDISCLOSED $50M+ EXITS


88

56

23

21

14

7

7

# Deals $ Millions*


Desjardins Capital

Caisse de dépôt et placement du Québec (CDPQ)

Investissement Québec

Fondaction CSN

BDC Capital Inc.

PFM Capital Inc.

$2,070

$693

$1,259

$560

$167

$62

$51

MOST ACTIVE PE INVESTORS // H1 2018

* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS

most active PE FIRM

88 DEALSFonds de solidarité FTQ


CVCA METHODOLOGY // VENTURE CAPITAL

VC DEVELOPMENT STAGES

SEED STAGE COMPANY HAS A CONCEPT OR PRODUCT UNDER DEVELOPMENT, BUT IS PROBABLY NOT FULLY OPERATIONAL.

EARLY STAGE COMPANY HAS A PRODUCT OR SERVICE IN TESTING OR PILOT PRODUCTION. IN SOME CASES, THE PRODUCT MAY BE COMMERCIALLY AVAILABLE.

LATER STAGE PRODUCT OR SERVICE IN PRODUCTION AND COMMERCIALLY AVAILABLE. COMPANY IS GENERATING ON-GOING REVENUE, BUT NOT NECESSARILY, PROFITABLE.

VC SECTORS

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

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

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

AGRIBUSINESS TRADITIONAL AND ADVANCED AGRICULTURAL TECHNOLOGIES AND SERVICES

Venture Capital Data:

Verified completed equity or quasi-equity venture capital deals only (non-equity or project-based government funding, pharmaceutical development deals, senior debt, venture capital-backed acquisitions, and angel financing are not included)


CVCA METHODOLOGY // PRIVATE EQUITY

Private Equity Data:

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

PE DEAL TYPE

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

continued

PE SECTORS

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


CVCA METHODOLOGY // PRIVATE EQUITY continued

PE SECTORS

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


CVCA ABOUT & CONTACT

AuthorsDarrell oversees all data related to Canadian private capital investments, exit and fundraising activities for the CVCA. Darrell has held senior positions at several global organizations including the Toronto Stock Exchange, Institutional Limited Partners Association, Thomson Reuters, Glaxosmithkline and the Interac Association. In between these, he also started his own successful management consulting company. He has worked in New York, London and Shanghai, but Toronto remains his favourite working city. He brings to the CVCA a passion for telling compelling stories with data. Darrell is currently on the board of a non-profit social housing in Peel, a member of Volunteer Toronto as well as an active volunteer with Woodgreen Community Services. He holds a BA in Philosophy/History from the University of Western Ontario and an MBA from the Rotman School of Management.

[email protected] | 416-487-0519 ext. 208

Carolyn oversees all of the CVCA’s communications and marketing efforts, which includes managing the Association’s brand, coordinating media outreach programs, and managing the development of all online content and social media engagements. Carolyn also brings with her a background in journalism, and is keen on positioning the CVCA as the industry thought leader for all things private capital through informative and engaging content. Carolyn has a BA in Popular Culture and Communications from Brock University, a diploma in Journalism from Niagara College Canada, and an interdisciplinary Master of Arts degree in Communication Studies from Brock University.


David executes research on venture capital and private equity deals within Canada. David is responsible for monitoring industry activity and maintaining the CVCA’s Infobase by entering data, including investments, exits, deals and fundraising activities on a daily basis. David holds a BA in Philosophy and Psy-chology from the University of Toronto.


DARRELL PINTOResearch Director

DAVID KORNACKIResearch Analyst

CAROLYN GOARDSenior Manager, Communications

About CVCAThe Canadian Venture Capital and Private Equity Association is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening indus-try awareness and providing market research, networking, and professional development opportunities.

We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of pri-vate capital firms in Canada, to improve the industry and drive innovation and growth.

For more information, 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 InfoBase data reports please contact [email protected]

vc & pe canadian market overview // h1 2018 · 2018-10-11 · venture capital & private...

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