vc & pe quÉbec market overview // h1 2018...the coveo solutions transaction included tandem...
TRANSCRIPT
VC & PE QUÉBEC MARKET OVERVIEW
// H1 2018
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 2
CONTENTS
PARTICIPATING DATA CONTRIBUTORS ............................................................................... 3
FOREWORD ...................................................................................................................................... 4 VC & PE ACTIVITY .................................................................................................................................................................... 5 VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE .......................................................................................... 6
VENTURE CAPITAL QUÉBEC MARKET OVERVIEW ......................................................... 7 QUÉBEC VENTURE CAPITAL HIGHLIGHTS ......................................................................................................... 8
VENTURE CAPITAL HEAT MAP ..................................................................................................................................... 9 QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC ................................................................. 10 VC ACTIVITY BY DEAL SIZE ............................................................................................................................................ 11 VC SECTOR BREAKDOWN ...............................................................................................................................................12 VC STAGE BREAKDOWN ................................................................................................................................................. 13 TOP DISCLOSED QUÉBEC VC DEALS .................................................................................................................... 14 TOP DISCLOSED VC EXITS .............................................................................................................................................. 15MOST ACTIVE VC INVESTORS IN QUÉBEC ....................................................................................................... 16
PRIVATE EQUITY QUÉBEC MARKET OVERVIEW ........................................................... 17 QUÉBEC PRIVATE EQUITY HIGHLIGHTS ............................................................................................................. 18
PRIVATE EQUITY HEAT MAP // ALL PE DEALS .............................................................................................. 19 QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY IN QUÉBEC ......................................... 20 PE ACTIVITY BY DEAL SIZE ............................................................................................................................................ 21 PE SECTOR BREAKDOWN .............................................................................................................................................. 22 TOP 10 DISCLOSED QUÉBEC PE DEALS ............................................................................................................. 23 TOP DISCLOSED PE EXITS IN QUÉBEC ................................................................................................................ 24MOST ACTIVE PE INVESTORS IN QUÉBEC ........................................................................................................ 25
CVCA METHODOLOGY ............................................................................................................. 26 VENTURE CAPITAL .............................................................................................................................................................. 26 PRIVATE EQUITY ............................................................................................................................................................. 27, 28
CVCA/RÉSEAU CAPITAL ABOUT & CONTACT .............................................................. 29
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 3
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
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
CVCA thanks the following firms who participated in itsh1 2018 survey.
If you would like to have your firm included in future reports, please contact either [email protected] or [email protected]
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
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 4
FOREWORD
Québec Captures Over A Quarter Of Venture Capital Activity In The Country; The Most Active Province For Private Equity Deals
Québec venture capital saw $210M invested over 60 deals in Q2; 92% more than Q1 2018 but 40% lower compared to Q2 2017. Québec captured 31% of the total number of VC deals in Canada (94 out of 308) in the first half of the year and 19% of the total dollars invested ($319M out of $1.7B).
In PE, the province saw $2B invested over 92 deals in Q2 bringing the total invested dollars in the first half to $3.3B over 177 deals. There was a 10% increase in volume of deals compared to H1 2017 but a 22% drop in invested dollars ($4.2B to $3.3B).
“Venture capital investors are continuing to see the value in the high quality, innovative businesses in Québec,” says Réseau Capital CEO, Jack Chadirdjian. “The province continues to offer a magnitude of value-creation opportunities as indicated by the PE numbers.”
There were seven venture capital exits in the first half of the year in Québec. This included the $141M corporate acquisition of TVM Life Science Management portfolio company AurKa Pharma by Eli Lilly and the $100M transaction in Coveo Solutions Incorporated from a private equity firm based in the United States. Selling investors in the Coveo Solutions transaction included Tandem Expansion Fund, Fonds de solidarité FTQ, Investissement Québec and BDC Capital.
The largest private equity exit in Québec in H1 was the $3B corporate buyout of Atrium Innovations Incorporated by Nestlé. The selling investors included Fonds de solidarité and Caisse de dépôt et placement du Québec (CDPQ).
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 5
VC & PE ACTIVITY // H1 2018
271 dealstotal #
$3.6btotalinvested
Venture Capital Private Equity
177deals
94deals
$319m
$3.3b
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 6
Laurentides
Outaouais
Nord-du-Québec /Abitibi-Témiscamingue
Laval
16
7
Montréal Montérégie
Lanaudière
Estrie
Centre-du-Québec
4
Québec
Chaudière-Appalaches
Mauricie
Saguenay-Lac-St-Jean /Côte-Nord
Bas-Saint-Laurent
16
50 64 21 2
1
68
10
6
1
11
5
1
14
11
87
6
3
Gaspésie/Îles-de-la-Madeleine
2
VC & PE ACTIVITY BY ADMINISTRATIVE CENTRE // H1 2018
montréal
114 DEALSmost active region
total #Private Equity
Venture Capital
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 7
VENTURE CAPITAL QUÉBEC MARKET
OVERVIEW // H1 2018
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 8
QUÉBEC VENTURE CAPITAL HIGHLIGHTS // H1 2018
Q2 2018 HIGHLIGHTS
$210M was invested over 60 deals in Q2 in Quebec, 92% more than the previous quarter ($109M) but 40% lower than the same quarter last year ($348M)
The average deal rise rose 9% from $3.2M to $3.5M
Key Findings:
H1 2018 HIGHLIGHTS
The largest deal was the $59M series D round in Breather Products Inc. by an investor syndicate that included Caisse de dépôt et placement du Québec (CDPQ)
Québec captured 31% of the total number of VC deals (94 out of 308) and 19% of dollars invested ($319 out of $1.7B).
Just over a third of VC activity (34 out of 94 deals) was in deal sizes between $1M-$5M, followed by deals between $100K-$500K capturing a 27% share.
ICT companies garnered $157M, a 49% of total dollars, down 4% from its 2017 share.
Agribusiness companies received $33M or 17% of total dollars, a significant spike from its 4% share in 2017.
Montréal-based companies received 68% (64 out of 94 deals) of VC deal flow followed by Laval-based companies with a 7% share (7 out of 94).
There were seven exits involving Québec-based companies 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. The selling investors included Tandem Expansion Fund, Fonds de solidarité FTQ, Investissement Québec and BDC Capital
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 9
VENTURE CAPITAL HEAT MAP // H1 2018
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
$1.7mtotal308 dealstotal #
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 10
QUARTER-OVER-QUARTER VC INVESTMENT IN QUÉBEC // H1 2018
TOTAL:111 DEALS / $344M
TOTAL:171 DEALS / $697M
TOTAL:166 DEALS / $982M
TOTAL:182 DEALS / $1.6B
$ Millions Invested
# Deals
0
10
20
30
40
50
60
70
80
60
70
80
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
Q2Q1 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1 Q3
$30
$72
$16
8
$73
$6
1
$19
2
$22
7
$21
7
$13
5
$17
8
$34
8
$54
8
$51
7
$10
9
Q2
$21
0
$37
7
28
27
34
22
3839
61
33
28
56
49
$26
7
Q4
$20
3
3334
60
36 39
53 54
2014 2015 2016 2017 2018
TOTAL:94 DEALS / $319M
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 11
$0.5
$5
$8
$79
$128
$40
$59
Total Deals $ Millions
< $100K
$100 - $500K
$500K - $1M
$1M - $5M
$5M - $20M
$20M - $50M
$50M +
9
25
11
34
11
2
1
VC ACTIVITY BY DEAL SIZE // H1 2018
most active deal category
in the province
$1M-$5M
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 12
VC SECTOR BREAKDOWN // 2014-H1 2018 $ Millions Invested
# Deals
0
10
20
30
40
50
60
70
80
100
90
$0
$60
$120
$180
$240
$300
$360
$420
$480
$540
$600
110
120
140
130
$660
$720
$780
$840
150$900
2017201620152014 20152014 201420172016 20162015 201520142017 20172016
$18
8
$52
$31
7
$45
5
H12018
H12018
H12018
H12018
$8
54
$15
7
$31
2
$28
8
$29
$30
2
$20
$70
12107
1014
10 9
14
43
20 1610
39
32
19
42
8990
85
64
ICT Life Sciences CleanTech Agribusiness
$6
1
$30
$6
7
$6
2
$49
$30
9
$25
$56
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 13
VC STAGE BREAKDOWN // 2014-H1 2018 $ Millions Invested
# Deals
0
10
20
30
40
50
60
70
80
100
90
$0
$60
$120
$180
$240
$300
$360
$420
$480
$540
$600
110$660
130
120$720
$780
140$840
201620152014 201620152014 201620152014
$17
3
$12
9
$35
8
$29
6
201720172017
$41
4
$75
4
$52
9
36
45
36
41
34
48
73
97
82
2727
49
33
59
30
$8
11
Seed Early Stage Later Stage
$41
$27
$39
$49
H12018
$30
H12018
H12018
$13
9
$15
0
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 14
TOP DISCLOSED QUÉBEC VC DEALS // H1 2018
COMPANY NAME ADMIN. CENTRE SECTOR DISCLOSED INVESTORS $ MIL.
BREATHER PRODUCTS INC. MONTREAL ICT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), MENLO VENTURES, TEMASEK HOLDINGS (PRIVATE) LIMITED $59
CONCENTRIC AG MONTREAL AGRIBUSINESS DESJARDINS CAPITAL, CYCLE CAPITAL MANAGEMENT/ECOFUEL, PONTIFAX VENTURE CAPITAL, TPG BIOTECH $20
SOUNDBITE MEDICAL SOLUTIONS INC. MONTREAL LIFE SCIENCES ANGES QUÉBEC, FMR LLC (FIDELITY) $20
MNUBO INC. MONTREAL ICT FONDS DE SOLIDARITÉ FTQ, INVESTISSEMENT QUÉBEC, MCROCK CAPITAL CORPORATION, MUNICH RE / HSB VENTURES, WHITE STAR CAPITAL INC. $17
ALGOLUX INC. MONTREAL ICT INTACT FINANCIAL CORPORATION, J. M. WOOD INVESTMENTS LTD., REAL VENTURES $13
AGRISOMA BIOSCIENCES INC. OUTAOUAIS AGRIBUSINESS
BDC CAPITAL INC., DATA COLLECTIVE, FMR LLC (FIDELITY), HANWHABDC CAPITAL INC., DESJARDINS CAPITAL, CYCLE CAPITAL MANAGEMENT/ECOFUEL, GROUPE LUNE ROUGE INVESTMENT CORP, INTEL CAPITAL, MICROSOFT VENTURES, NATIONAL BANK OF CANADA, NVIDIA CORPORATION, REAL VENTURES
$12
POLYSTYVERT INC. MONTREAL CLEAN TECH ANGES QUÉBEC, ANGES QUÉBEC CAPITAL, CYCLE CAPITAL MANAGEMENT/ECOFUEL, ENERGY FOUNDRY, QUADRIAM INVESTMENTS $11
THERE WERE 3 UNDISCLOSED DEALS THAT WERE NOT INCLUDED IN THIS TABLE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 15
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 WERE 5 UNDISCLOSED EXITS INVOLVING QUEBEC-BASED COMPANIES
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 16
$72
$13
Desjardins Capital
Real Ventures
Cycle Capital Management/Ecofuel
Fonds de solidarité FTQ
BDC Capital Inc.
Panache Ventures
Total Deals $ Millions*
27
22
11
11
11
5
25
7
Réseau Anges Québec
Anges Québec Capital
$62
$55
$59
$49
$42
$6
MOST ACTIVE VC INVESTORS IN QUÉBEC // H1 2018
* TOTAL DEAL VALUES - INCLUDES ALL PARTICIPATING INVESTORS
Desjardins Capital
27 DEALS
most active FIRM
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 17
PRIVATE EQUITY QUÉBEC MARKET
OVERVIEW // H1 2018
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 18
QUÉBEC PRIVATE EQUITY HIGHLIGHTS // H1 2018
Q2 2018 HIGHLIGHTS
$2B was invested over 92 deals, 54% higher than the previous quarter and 47% higher than the same quarter in 2017.
The average deal size spiked 42% from the previous quarter from $15.3M to $21.7M.
H1 2018 HIGHLIGHTS
There was a 10% increase in the number of deals in H1 2018 (177) compared to the 161 from the same period last year. However, total PE dollars invested dropped 22% from $4.2B to $3.3B.
Québec captured 61% of all Canadian PE deals (177 out of 288), more than three times greater than Ontario’s 18% share.
Just over a third (38%) of all deals were between $1M-$5M, with deals between $5M-$25M capturing a 23% share of the province’s deal activity.
28% of deals (49 deals) went to companies in the industrial and manufacturing sector with 14% going to the ICT sector (25 deals).
The $509M follow-on investment into Stingray Digital Group Inc. was the largest deal this year; Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ were joint investors.
The largest exit was the $3B corporate buyout of Atrium Innovations Inc. by Nestlé. Selling investors included Fonds de solidarité and Caisse de dépôt et placement du Québec (CDPQ).
Key Findings:
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 19
8 3
11
1772421
$304m$23m
$214m
$3.3b
NA
$10.7bOntario
BCAlberta
Saskatchewan
Québec
Nova Scotia
naManitoba NA
NewBrunswick
53
PRIVATE EQUITY HEAT MAP // ALL PE DEALS // H1 2018
$14.6btotal 288 dealstotal #
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 20
TOTAL:97 DEALS / $5.8B
TOTAL:176 DEALS / $5.5B
TOTAL:347 DEALS / $3.8B
TOTAL:335 DEALS / $10.6B
TOTAL:177 DEALS / $3.3B
$ Millions Invested
# Deals
QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY IN QUÉBEC // H1 2018
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Q2Q1 Q1Q4Q3Q2Q1Q4Q3Q2Q1
$4,000
$1,
141
$1,
917
$1,
843
$9
00
$1,
729
$26
7
$2,
556
$9
05
$1,
255
$9
13
202528 24
30
4946
51
87 91
Q3
86
$6
20
Q2
$1,
038
$2,
86
0
$1,
360
Q3
$4,
278
Q4
$2,
132
Q1
$1,
299
Q2
$1,
99
9
83
63
98
86
86
80
Q4
2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
150
$4,500 160
92
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 21
Total Deals $ Millions
< $100K
$100K - $500K
$500K - $1M
$1M - $5M
$5M - $25M
$25M - $100M
$100M - $500M
$500M-$1B
$1B-$2.5B
$2.5B+
2
16
20
67
41
12
7
1
0
0
$0.1
$4
$12
$147
$450
$768
$1,409
$509
$0
$0
PE ACTIVITY BY DEAL SIZE // H1 2018
capture 43% of total dollars
7 mid-market deals
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 22
49
25
19
17
16
16
9
9
7
4
4
2
0
# Deals $ Millions
Industrial & Manufacturing
ICT
Mining & Resources
Consumer & Retail
Agri-Forestry
Business Products & Services
Life Sciences
Automotive & Transportation
CleanTech
Real Estate
Financial
Oil & Gas, Power
Others
$621
$444
$187
$136
$384
$885
$42
$116
$104
$147
$13
$218
$0
PE SECTOR BREAKDOWN // H1 2018
49 deals
most active sector
Industrial & Manufacturing
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 23
TOP DISCLOSED QUÉBEC PE DEALS // H1 2018
COMPANY NAME ADMIN. CENTRE DISCLOSED INVESTORS INVOLVED IN TRANSACTION SECTOR $ MIL.
STINGRAY DIGITAL GROUP INC. MONTREAL CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ BUSINESS PRODUCTS & SERVICES $509
NAPEC INC. CENTRE-DU-QUÉBEC FONDS DE SOLIDARITÉ FTQ, OAKTREE CAPITAL GROUP, LLC INDUSTRIAL & MANUFACTURING $320
BORALEX INC. CENTRE-DU-QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ OIL & GAS, POWER $200
ESTRUXTURE MONTREAL FENGATE CAPITAL MANAGEMENT LTD. ICT $180
RÉSIDENCES POUR AÎNÉS IMMO 1ERE INC. MONTREAL DESJARDINS CAPITAL REAL ESTATE $122
COVEO SOLUTIONS INC. QUÉBEC EVERGREEN COAST CAPITAL CORP., TANDEM EXPANSION FUND ICT $100
INDUSTRIES AMISCO LTÉE (LES) CHAUDIÈRE-APPALACHES DESJARDINS CAPITAL INDUSTRIAL &
MANUFACTURING $81
CABLE AXION/ CÂBLE-AXION DIGITEL INC.
SAGUENAY-LAC-ST-JEAN/CÔTE-NORD DESJARDINS CAPITAL ICT $78
EBI OPERATIONS INC. LANAUDIÈRE FONDS DE SOLIDARITÉ FTQ CLEANTECH $70
ELYSIS TECHNOLOGIES MONTREAL INVESTISSEMENT QUÉBEC MINING & RESOURCES $60
THERE WERE 7 UNDISCLOSED DEALS THAT WERE EXCLUDED FROM THIS TABLE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 24
TOP DISCLOSED PE EXITS IN QUÉBEC // H1 2018
NOTE: There were 3 additional undisclosed exits over $50M
from Québec-based companies
SELLER COMPANY BUYER $ MIL.
PERMIRA, FONDS DE SOLIDARITÉ (FTQ), CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ) ATRIUM INNOVATIONS INC. NESTLÉ S.A. $2,973
CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ (FTQ), INVESTISSEMENT QUÉBEC, ONE51 PLC IPL INC. NA - IPO $709
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 25
# Deals $ Millions*
Fonds de solidarité FTQ
Desjardins Capital
Investissement Québec
Caisse de dépôt et placement du Québec (CDPQ)
Fondaction CSN
BDC Capital Inc.
85
55
21
18
14
5
$2,036
$689
$560
$1,224
$167
$36
MOST ACTIVE PE INVESTORS IN QUÉBEC // H1 2018
* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS
85 DEALS
most active PE investor
Fonds de solidarité FTQ
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 26
CVCA METHODOLOGY // VENTURE CAPITAL
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)
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
QUÉBEC ADMINISTRATIVE REGIONS
NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE
OUTAOUAIS
LAURENTIDES
LAVAL
MONTRÉAL
MONTÉRÉGIE
LANAUDIÈRE
MAURICIE
ESTRIE
CENTRE-DU-QUÉBEC
QUÉBEC
CHAUDIÈRE-APPALACHES
SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD
BAS-SAINT-LAURENT
GASPÉSIE/ÎLES-DE-LA-MADELEINE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 27
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
QUÉBEC ADMINISTRATIVE REGIONS
NORD-DU-QUÉBEC / ABITIBI-TÉMISCAMINGUE
OUTAOUAIS
LAURENTIDES
LAVAL
MONTRÉAL
MONTÉRÉGIE
LANAUDIÈRE
MAURICIE
ESTRIE
CENTRE-DU-QUÉBEC
QUÉBEC
CHAUDIÈRE-APPALACHES
SAGUENAY-LAC-ST-JEAN/ CÔTE-NORD
BAS-SAINT-LAURENT
GASPÉSIE/ÎLES-DE-LA-MADELEINE
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 28
CVCA METHODOLOGY // PRIVATE EQUITY
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
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
continued
VENTURE CAPITAL & PRIVATE EQUITY QUÉBEC MARKET OVERVIEW // H1 2018 | 29
CVCA/RÉSEAU CAPITAL 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
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.
[email protected] | 416-487-0519 ext. 202
DARRELL PINTOResearch Director
DAVID KORNACKI Research Analyst
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 industry 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 private 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
About Réseau CapitalRéseau Capital, the Québec Venture Capital and Private Equity Association, is the only private equity association that brings together all stakeholders involved in the Québec investment chain. The mission of Réseau Capital is to contribute to the development and efficient operation of the private equity industry, which plays a major role in the development and financing of businesses in Québec.
Founded in 1989, Réseau Capital represents private equity, tax-advantaged and public investment companies as well as banks, accounting and law firms, along with many professionals working in the field.
To arrange for an interview, please contact:Catherine Berbery | 514-880-2372 | [email protected]
For more information, visit reseaucapital.com
@reseaucapital Réseau Capital
Espace CDPQ – 3 Place Ville-Marie, suite 12350, Level L, Montréal, QC H3B 0E7
To obtain estimates for additional custom InfoBase data reports please contact [email protected]