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Canada’s Buyout & Private Equity Market in 2011Canada’s Buyout & Private Equity Market in 2011Canada s Buyout & Private Equity Market in 2011Canada s Buyout & Private Equity Market in 2011
Prepared by Thomson Reuters for Canada’s Venture Capital & p y pPrivate Equity Association
1. Overview of Canadian Market Activity in 20111. Overview of Canadian Market Activity in 2011
Canadian buyout-PE market trends
B t d th i t it (PE) k t ti it i C d t k i ifi t t id f d i 2011 ith d ll fl hiBuyout and other private equity (PE) market activity in Canada took significant strides forward in 2011, with dollar flows reachingtheir highest levels in 3 years. Disclosed deal values totaled $11.5 billion last year, up 69% from 2010. In addition, announcedand closed transactions, totaling 235 last year, grew 38% over the same period. In fact, deal volume in 2011 was the highest onrecord, surpassing even the 229 deals done in 2007.
On the heels of a comparatively quiet Q3 2011, Canadian deal-making received a boost in the final months of the year, with 54transactions capturing $2.2 billion. Deal volume was also higher on a year-over-year basis.
T id k t d l k t ti it i Q4 2011 Th l t f th St li P t l ti $590Two upper mid-market deals were key to activity in Q4 2011. The largest of these saw Sterling Partners completing a $590million take-private buyout of Ottawa’s MOSAID Technologies Inc. KERN Partners, The Blackstone Group, Warburg Pincus andother investors also put $500 million to work in Calgary’s Osum Oil Sands Corp. Activity in this period also featured a $160 millioninvestment by CDP Capital Private Equity and CPP Investment Board in Genivar Inc., and a $153 million acquisition by Birch HillEquity Partners that privatized GDI Distinction Group Inc. Both firms are based in Montréal.
Overall, seven deals sized $500 million or more obtained 52% of total dollars invested last year, while 21 deals of between $100million to $500 million took a 32% share. The remaining 126 transactions sized less than $100 million accounted for the rest.$ g $
Trends in the US buyout-PE market
In general terms, American buyout-PE market activity in 2011 paralleled the post-slowdown trends of the year before. However,in contrast with activity in Canada, there was weaker activity in the United States in the final months of the year. This contributedto a 24% reduction in the disclosed values, which totaled US$113.0 billion last year, compared to US$148.8 billion in 2010.
Canadian market trends by sector
Businesses in Canada’s mining sector accounted for the largest number of buyout-PE deals in 2011, or 23% of the total.Manufacturing and processing firms took second spot, accounting for 16% of the total, followed by oil and gas and other energy-related firms, which took a 14% share.
When measured by disclosed disbursements, domestic market activity was last year led in the manufacturing sector, whichabsorbed one-quarter of the total amount, followed closely by oil and gas-related activity with 19%. Substantial shares were alsoassumed by information and media (15%), mining (11%) and agriculture and forest products (9%).
Overview of Canadian Market Activity in 2011Overview of Canadian Market Activity in 20111 Of the 235 deals done in Canada in 2011, 66% had disclosed dollar values.
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Canadian market trends by region
Th l t b f C di b t PE t ti i 2011 i l d b i h d t d i O t i 36% f th t t lThe largest number of Canadian buyout-PE transactions in 2011 involved businesses headquartered in Ontario, or 36% of the totalnumber. Québec also reflected a sizeable share of deal-making, evidenced in its 23% of the total, followed by British Columbiawith 20%, and Alberta with 18%.
As some of the most dollars-intensive activity (e.g., the $2.1 billion Husky buyout) was located in Ontario, that province secured aparticularly large 51% of disclosed values this time around. Alberta accounted for almost one-fifth of the total amount last year,followed by British Columbia (15%) and Québec (12%).
C di i t ti it i l b l k tCanadian investor activity in global markets
Over the course of last year, Canadian buyout-PE funds ramped up their global deal-making. This culminated in Q4 2011 with thehighest level of activity, in dollar terms, since the market was renewed in early 2010. Contributing to this was the final close ofthe US$6.1 billion acquisition of Kinetic Concepts Inc. of Houston, Texas by Apax Partners, CPP Investment Board and PSPInvestment Board, and the US$1.6 billion acquisition of 99 Cents Only Dollar Stores of Commerce, California by Ares Managementand CPP Investment Board.
T ki 2011 h l d ti i t l d ti i t d i 42 i t ti l t ti d li htl f th b fTaking 2011 as a whole, domestic investors led or participated in 42 international transactions, down slightly from the year before.Despite the major deals done between July and December, disclosed disbursements, which totaled $19.9 billion last year, were34% lower on a year-over-year basis.
Canadian buyout-PE exit activity
In keeping with post-slowdown market conditions, buyout-PE fund realizations of Canadian portfolio assets were relatively steadyin 2011. Totaling 56 at the end of December, liquidity events were 25% below the record high established in 2010, however,
ti it i 2011 d d th t t d f ll iactivity in 2011 exceeded that reported for all prior years.
Strategic sales remained the essential driver of exits, accounting for 68% of the total number last year. This trend continued inthe fourth quarter, illustrated in one of the largest events of 2011, Teachers’ Private Capital’s sale of its majority stake in MapleLeaf Sports and Entertainment Ltd. of Toronto to Bell Canada Enterprises Inc. and Rogers Communications Inc. for $1.32 billion.
There have been fewer opportunities for selling portfolio holdings in public markets in recent years, though 2011 saw 4 Canadian-based IPOs, involving such firms as the hockey equipment icon, Bauer Performance Sports Ltd. of Mississauga. Over 2010-2011,PE b ked IPO e e l ge th n non PE b ked IPO ith the fo me e ging $327 million omp ed to the l tte ’ e ge of
Overview of Canadian Market Activity in 2011Overview of Canadian Market Activity in 20112 Data reflect the total value of disclosed global deals, not the specific “Canadian” investor contributions to th d l
PE-backed IPOs were larger than non-PE-backed IPOs, with the former averaging $327 million, compared to the latter’s average of$294 million.
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these deals.
Trends in Canadian buyout-PE fund-raising
In the challenging fund-raising environment of 2011, new capital committed to Canadian buyout, mezzanine and other PE fundstended to keep pace with activity over the past two years. At year’s end, total fund-raising activity reached $3.6 billion, edgingout by 10% the $3.3 billion brought into the market in 2010.
Fifteen domestic funds, the vast majority of which reflected initial or final partnership closings, were responsible for the newsupply, compared to 18 funds in 2010. 2011’s top fund formations included the US$1.0 billion distressed-for-control partnership,Catalyst Fund LP III, managed by Catalyst Capital Group, and the $800 million mid-market buyout partnership, ONCAP III,y , g y y p p, $ y p p, ,managed by Onex Corp.
Overview of Canadian Market Activity in 2011Overview of Canadian Market Activity in 2011
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2 B t & P i t E it M k t A ti it i C d 2 B t & P i t E it M k t A ti it i C d 2. Buyout & Private Equity Market Activity in Canada 2. Buyout & Private Equity Market Activity in Canada in 2011in 2011
400$30
$23.0
$26.2
$18 3
300
350
$20
$25
of
$CAD
$18.3
$11.5
219229
203
137
170
235
150
200
250
$15
$ 0
# o
f D
eals
ues
: Bill
ions
o
$5.2$6.8
50
100
150
$5
$10
Dea
l Val
0$0
2006 2007 2008 2009 2010 2011
Total Deal Values # of Deals
In 2011, In 2011, Canadian Deal Volume Up 38%, Values 69%Canadian Deal Volume Up 38%, Values 69%BUYOUTBUYOUT‐‐PE DEALS & DISBURSEMENTS (DISCLOSED) IN CANADA, 2006 PE DEALS & DISBURSEMENTS (DISCLOSED) IN CANADA, 2006 ‐‐ 20112011
NB: For a discussion of key data methodology issues, please see explanatory notes on pg. 29-30.
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100$7,000
$5,731
6367 70
80
90
$5,000
$6,000
of
$CAD
$2 275 $2 252 $2 24236
39
52
43
5154
40
50
60
$3,000
$4,000
ues
: M
illio
ns
o
# o
f D
eals
$1,409
$872
$2,275 $2,252$2,049
$1,457
$2,242
10
20
30
$1,000
$2,000
Dea
l Val
u
0$0
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Total Deal Values # of Deals
UptickUptick in in Domestic Market Activity in Q4 Domestic Market Activity in Q4 BUYOUTBUYOUT‐‐PE DEALS & DISBURSEMENTS (DISCLOSED) IN CANADA, Q1 2010 PE DEALS & DISBURSEMENTS (DISCLOSED) IN CANADA, Q1 2010 –– Q4 2011Q4 2011
NB: For a discussion of key data methodology issues, please see explanatory notes on pg. 29-30..
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160
120
140
160
60
80
100
# o
f D
eals
20
40
60#
02006 2007 2008 2009 2010 2011
Domestic Investors Foreign Investors
Canadian Funds Account for 60% of Deals in 2011 Canadian Funds Account for 60% of Deals in 2011 CANADIAN CANADIAN BUYOUTBUYOUT‐‐PE PE DEAL ACTIVITY BY DOMESTIC & FOREIGN INVESTORS, 2006 DEAL ACTIVITY BY DOMESTIC & FOREIGN INVESTORS, 2006 ‐‐ 20112011
Thomson ReutersThomson Reuters9
Oil & Gas
Manufacturing
Mining
Transportation
Software
Information & Media
Healthcare & Life Sciences
R t il
Hospitality & Entertainment
Construction & Engineering
Finance
Distribution & Wholesale
0 10 20 30 40 50 60
Other Industries
Agriculture & Forestry
Retail
DealDeal‐‐Making Favours Resource Extraction,Making Favours Resource Extraction, ManufacturingManufacturingCANADIAN CANADIAN BUYOUTBUYOUT‐‐PE DEAL VOLUME BY SECTOR, 2011PE DEAL VOLUME BY SECTOR, 2011
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Mining
Information & Media
Oil & Gas
Manufacturing
Finance
Transportation
Hospitality & Entertainment
Agriculture & Forestry
Mining
Retail
Software
Construction & Engineering
Distribution & Wholesale
Finance
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
Other Industries
Healthcare & Life Sciences
Retail
Cash Goes to Manufacturing, Resource Sectors, InfoCash Goes to Manufacturing, Resource Sectors, Info‐‐MediaMediaCANADIAN CANADIAN BUYOUTBUYOUT‐‐PE DISBURSEMENTS (DISCLOSED) BY SECTOR, 2011PE DISBURSEMENTS (DISCLOSED) BY SECTOR, 2011
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Deal Range # of Dollars Invested Deal Range # of DealsDone
Dollars Invested (Disclosed)
> $1 Billion 2 $3,053 Million (27%)
$500 Million - $1 Billion 5 $2,902 Million (25%)
$100 Million - $500 Million 21 $3,645 Million (32%)
$25 Million - $100 Million 27 $1,311 Million (11%)
< $25 Million 99 $567 Million (5%)
Deal Values Undisclosed 81 $0 (0%)Deal Values Undisclosed 81 $0 (0%)
Total Deals With Disclosed Values: 154 (of 235)Total Deals With Disclosed Values: 154 (of 235)Total Invested: $11.5 BillionTotal Invested: $11.5 Billion
Deals Sized >$500 Million Absorb 52% of Dollars Deals Sized >$500 Million Absorb 52% of Dollars CANADIAN BUYOUTCANADIAN BUYOUT‐‐PE DEALS BY MARKET SEGMENT, 2011PE DEALS BY MARKET SEGMENT, 2011
NB: For a discussion of domestic market segments, please see Explanatory Notes #4 & 5 on pg. 29.
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Deal Range 2011 2010Deal Range 2011 2010
> $1 Billion $3,053 Million(27%)
$0
$500 Million - $1 Billion $2 902 Million $2 462 Million$500 Million - $1 Billion $2,902 Million(25%)
$2,462 Million(36%)
$100 Million - $500 Million $3,645 Million (32%)
$2,982 Million(44%)
$25 Million $100 Million $1 311 Million $770 Million $25 Million - $100 Million $1,311 Million(11%)
$770 Million (11%)
< $25 Million $567 Million(5%)
$595 Million(9%)
T t l (Di l d) Di b t $11 5 Billi $6 8 BilliTotal (Disclosed) Disbursements $11.5 Billion $6.8 Billion
LargeLarge‐‐Cap Transactions in Focus in 2011Cap Transactions in Focus in 2011CANADIAN BUYOUTCANADIAN BUYOUT‐‐PE DEALS (WITH VALUES) BY MARKET SEGMENT, 2010 & 2011PE DEALS (WITH VALUES) BY MARKET SEGMENT, 2010 & 2011
NB: For a discussion of domestic market segments, please see Explanatory Notes #4 & 5 on pg. 29.
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Total Deals: 235Total Deals: 235
29%
19%
3%
3%
46%
Control-Stake Acquisition Minority-Equity Investment Rescue-Restructuring
Secondary Buyout Other
ControlControl‐‐Stake & Minority Transactions Lead Trends Stake & Minority Transactions Lead Trends CANADIAN BUYOUTCANADIAN BUYOUT‐‐PE DEAL VOLUME BY TRANSACTION TYPE, 2011PE DEAL VOLUME BY TRANSACTION TYPE, 2011
NB: For definitions of transaction types, please see Explanatory Note #8 on pg. 30.
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Total Deals in 2011: 235Total Deals in 2011: 235Total Deals in 2010: 170Total Deals in 2010: 170
20%23%
15%
2%
18%
23%
13%
3%
34%
3%
36%
3%
33%
British Columbia Alberta Manitoba-SaskatchewanOntario Québec Atlantic CanadaTerritories
Majority of Deals Done in Ontario, Majority of Deals Done in Ontario, Québec Québec CANADIAN CANADIAN BUYOUTBUYOUT‐‐PE DEAL ACTIVITY BY REGION, 2010 & 2011PE DEAL ACTIVITY BY REGION, 2010 & 2011
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Total Invested in 2010: $6.8 BillionTotal Invested in 2010: $6.8 Billion Total Invested in 2011: $11.5 BillionTotal Invested in 2011: $11.5 Billion
15%12%
2% 1%
9%
19%
1%
19%29%
51%42%
British Columbia Alberta Manitoba-SaskatchewanOntario Québec Atlantic CanadaTerritories
LargeLarge‐‐Cap Deals Give Ontario Over Half of Dollar FlowsCap Deals Give Ontario Over Half of Dollar FlowsCANADIAN CANADIAN BUYOUTBUYOUT‐‐PE DISBURSEMENTS BY REGION, 2010 & 2011PE DISBURSEMENTS BY REGION, 2010 & 2011
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$600
$400
$500
of $CAD
$200
$300
$
alues
: Bill
ions
o
$100
$200
Dea
l Va
$02006 2007 2008 2009 2010 2011
Canada X 10 United States
CanadianCanadian‐‐US Market Trends Broadly in Parallel US Market Trends Broadly in Parallel BUYOUTBUYOUT‐‐PE DISBURSEMENTS (DISCLOSED)PE DISBURSEMENTS (DISCLOSED) IN CANADA & UNITED STATES, 2006 IN CANADA & UNITED STATES, 2006 ‐‐ 20112011
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Company Prov. Value InvestorsCompany Prov. Value Investors
Husky International Ltd. ON $2,100 Berkshire Partners, OMERS Private Equity
Timberwest Forest Ltd. BC $1,030 BC Investment Management Corp PSP Investment BoardCorp., PSP Investment Board
Trader Corp. ON $745 Apax Partners
Mosaid Technologies Inc. ON $590 Sterling Partners
Baffinland Iron Mines Corp. ON $590 Energy & Minerals Group
Inmet Mining Corp. ON $500 Ellington Investments
Osum Oil Sands Corp. AB $500 KERN Partners, The Blackstone Group, Warburg Pincus
Black Swan Energy Corp. AB $350 CPP Investment Board, KERN Partners, Warburg Pincus
Top Canadian BuyoutTop Canadian Buyout‐‐PE Deals (Disclosed) in 2011PE Deals (Disclosed) in 2011CAD$ MILLIONSCAD$ MILLIONS
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3 C di F d A ti it i Gl b l B t & P i t 3 C di F d A ti it i Gl b l B t & P i t 3. Canadian Fund Activity in Global Buyout & Private 3. Canadian Fund Activity in Global Buyout & Private Equity Markets in 2011Equity Markets in 2011
70$80.0
$67.3 $69.0
46
49
42
50
60
$60.0
$70.0
f $CAD
$32.2$30.325
32
42
30
40
$40.0
$50.0
ues
: Bill
ions
of
# o
f D
eals
$7.2
$19.9
25
17
10
20
$10.0
$20.0
$30.0
Dea
l Val
u
$7.2
0$0.0
$10.0
2006 2007 2008 2009 2010 2011
Total Deal Values # of Deals
Overall, Canadian DealOverall, Canadian Deal‐‐Making Abroad Dips Slightly in 2011Making Abroad Dips Slightly in 2011GLOBAL GLOBAL BUYOUTBUYOUT‐‐PE DEALS & DISBURSEMENTS (DISCLOSED) INVOLVING CANADIAN FUNDS, 2006 PE DEALS & DISBURSEMENTS (DISCLOSED) INVOLVING CANADIAN FUNDS, 2006 ‐‐ 20112011
NB: For a discussion of Canadian activity in global deals, please see Explanatory Note #9 on pg. 30.
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$11.030$12
$8.8
$7.7
$11.0
19 20
25
$8
$10
$CAD
$7.4
$6.5
$7.7
$4.815
14
11
19
11
15
20
$6
$8
es:
Bill
ions
of
# o
f D
eals
$3.49
11
6 6
11
5
10
$2
$4
Dea
l Val
u
$0.7
0$0Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11
Total Deal Values # of Deals
International Deals Regain Momentum Late in YearInternational Deals Regain Momentum Late in YearGLOBALGLOBAL BUYOUTBUYOUT‐‐PE DEALS & DISBURSEMENTS (DISCLOSED) INVOLVING CANADIAN FUNDS, Q1 2010 PE DEALS & DISBURSEMENTS (DISCLOSED) INVOLVING CANADIAN FUNDS, Q1 2010 –– Q4 2011Q4 2011
NB: For a discussion of Canadian activity in global deals, please see Explanatory Note #9 on pg. 30.
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Total Deals: 42Total Deals: 42Total Invested: $19.9 BillionTotal Invested: $19.9 Billion
19%
2%
60%
40%
79%
United States Europe Australia
Canadian DealCanadian Deal‐‐Making Focused on US, EuropeMaking Focused on US, EuropeGLOBALGLOBAL BUYOUTBUYOUT‐‐PE DEAL ACTIVITY INVOLVING CANADIAN FUNDS PE DEAL ACTIVITY INVOLVING CANADIAN FUNDS BY BY REGION, 2011REGION, 2011
NB: For a discussion of Canadian activity in global deals, please see Explanatory Note #9 on pg. 30.
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Company Nation Value Investorsp y
Kinetic Concepts Inc. USA $6,212 Apax Partners, CPP Investment Board, PSP Investment Board
Gassco AS Norway $3,180 Allianz Capital Partners, CPP Gassco AS y $ , p ,Investment Board, Other Investors
SPIE SA France $2,957 AXA Private Equity, CDP Capital Private Equity, Clayton, Dubilier & RiceRice
99 Cents Only Stores USA $1,645 Ares Management, CPP Investment Board
Blue Coat Systems Inc. USA $1,322 Teachers’ Private Capital, Thoma Bravo
JELD-WEN Inc. USA $917 Onex Corp.
NXT Capital Inc. USA $554 Stone Point Capital, Teachers’ Private Capital, Other Investors
Canadian Funds Key to Top International DealsCanadian Funds Key to Top International DealsGLOBAL BUYOUTGLOBAL BUYOUT‐‐PE DEALS INVOLVING CANADIAN FUNDS, CAD$ MILLIONSPE DEALS INVOLVING CANADIAN FUNDS, CAD$ MILLIONS
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4 C di4 C di B d B t & P i t E itB d B t & P i t E it B k dB k d4. Canadian4. Canadian--Based Buyout & Private EquityBased Buyout & Private Equity--BackedBackedExit Activity in 2011Exit Activity in 2011
7580
5254
5660
70
of Exi
t Eve
nts
4035
30
40
50
#
10
20
02006 2007 2008 2009 2010 2011
Other Exit IPO/Other Public Buyback Financial Sale Strategic Sale
Exit Activity Turns In SecondExit Activity Turns In Second‐‐Best Year on RecordBest Year on RecordBUYOUTBUYOUT‐‐PEPE‐‐BACKED EXIT INVOLVING CANADIAN BUSINESSES, BY TYPE, 2006BACKED EXIT INVOLVING CANADIAN BUSINESSES, BY TYPE, 2006‐‐20112011
NB: For clarification of Canadian exit activity data, please see Explanatory Note #10 on pg. 30.
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Company Prov. Value InvestorsCompany Prov. Value Investors
Husky International Ltd. ON $2,100 Onex Corp.
Hudson's Bay Trading Co. –Z ll I
ON $1,800 NRDC Equity PartnersZellers Inc.
Maple Leaf Sports and Entertainment Ltd.
ON $1,320 Teachers’ Private Capital
GCAN Insurance Co. ON $420 Teachers’ Private Capital
Marsulex Inc. ON $420 Birch Hill Equity Partners
Norcast Wear Solutions Inc. ON $216 Castle Harlan
Northern Digital Inc. ON $200 Audax Group, BMO Capital Corp.
Norcast Wear Solutions Inc. ON $190 Pala Investments AG
Top Canadian Exits Via Strategic & Financial Sales (Disclosed), 2011Top Canadian Exits Via Strategic & Financial Sales (Disclosed), 2011CAD$ MILLIONSCAD$ MILLIONS
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5 C di B t & P i t E it F d5 C di B t & P i t E it F d R i i R i i 5. Canadian Buyout & Private Equity Fund5. Canadian Buyout & Private Equity Fund--Raising Raising Activity in 2011Activity in 2011
$12 0
of
$CAD
$10.3
$10.0
$12.0
ised
: Bill
ions
o
$5.6
$6.4
$6.0
$8.0
Funds
Ra
$3.6 $3.3 $3.6$4.0
$0.0
$2.0
2006 2007 2008 2009 2010 2011
FundFund‐‐Raising Levels Edge Up 10% Year Over YearRaising Levels Edge Up 10% Year Over YearNEW COMMITMENTS TO CANADIAN BUNEW COMMITMENTS TO CANADIAN BUYOUT, MEZZANINEYOUT, MEZZANINE & OTHER & OTHER PE FUNDS, 2006 PE FUNDS, 2006 –– 20112011
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1) Data collected and analyzed by Thomson Reuters for this statistical report were drawn from a variety of sources. These include proprietary sources among the members of Canada’s Venture Capital and Private Equity Association (CVCA), Réseau du capital d’i ti t d Q éb d th C di d id t f d di t Th R t ’ l dd’investissement du Québec, and other Canadian and non‐resident fund managers, responding to Thomson Reuters’ annual and quarterly surveys.
2) The data methodology for this report was developed by Thomson Reuters and is comparable to other methodologies used to track trends in comparable national and regional buyout and private equity (PE)markets. CVCA and Réseau members have provided invaluable advice to Thomson Reuters concerning characteristics and issues particular to the Canadian fund
d d kmanagement industry and market.
3) All dollar values in this report are represented in Canadian currency unless otherwise specified.
4) Key statistical indicators (e.g., total numbers of deals, total disbursements, per quarter or per annum) are influenced by the fact that a substantial fraction of buyout and other PE deals are not fully disclosed. For instance, “dollars invested” in a given period pertain only to those deals with values that have been published or confidentially disclosed to Thomson Reuters. Due to strict confidentiality covenants with fund managers, Thomson Reuters has been able to expand the quantity and quality of datathat are disclosed for reporting purposes. This is evidenced in comparisons of North American deal information housed in Thomson One – e.g., in 2010, 69% of buyout‐PE deals done in Canada reflected disclosed values, while the share for comparable deals done in the United States was 33%.
5) For the purposes of this report, Canadian deals with disclosed values are discussed according to their organization in broadsegments, including mega‐deals (above $1 billion), upper mid‐market activity (above $500 million), mid‐market activity (below $500 million), lower mid‐market activity (below $100 million), etc.
6) Statistical data reflect all essential forms of buyout‐PE deal‐making, including control‐stake acquisitions of businesses, minority equity investments, restructuring and special‐situations transactions, and mezzanine and other quasi‐equity investments. The
Explanatory NotesExplanatory Notes
equity investments, restructuring and special situations transactions, and mezzanine and other quasi equity investments. The data also reflect the activity of PE funds focused on businesses in specific sectors (e.g., infrastructure, mining, oil and gas, etc.).
7) The data highlight the continuous domestic deal activity of key Canadian fund types, including private‐independent funds, corporate and institutional captive funds, and retail funds. The activity of foreign investors in Canada is also captured.
p yp y
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8) Definitions of transaction types:
C t l t k i iti M j it i t t i iti ( b t ) f b i•Control‐stake acquisitions: Majority‐interest acquisitions (or buyouts) of businesses.•Publics‐to‐privates: Control‐stake acquisitions in which businesses move from public to private ownership.•Secondary buyouts: Control‐stake acquisitions in which ownership is transferred from one investor to another.•Minority equity investments: A diverse range of growth‐equity and other non‐controlling (or minority‐interest) investments in businesses.•Rescues‐restructurings: Control‐stake acquisitions and other activity involving businesses in financial distress or undergoing major reorganization.•Acquisitions for expansion: Merger and acquisition events driven by buyout‐PE‐backed businesses in expansion mode.•Other: Various other PE deal types and deals for which definitional information is currently insufficient.
9) The data also highlight the deal‐making of Canadian funds in the United States, Europe, Asia, and elsewhere around the world.Statistics in this report reflect instances in which Canadian funds have acted as sponsors, co‐sponsors or co‐investors in deals in non‐resident businesses, or have otherwise engaged in direct investments in these. “Dollars invested” in a given period pertain to the total value of disclosed deals in which Canadian funds have participated (in the case of large‐cap deals, typically with foreign partners) and not the specific Canadian financial contributions to these deals.
10) Statistical data pertaining to buyout‐PE‐backed exit events capture activity involving businesses based in Canada. They do not include exits from non‐resident businesses in Canadian fund portfolios.p
11) Over time, statistics are subject to continuous change as Thomson Reuters receives new data and as investors and their portfolio companies elect to disclose further details about transactions. In addition, key indicators might change appreciably in the short term due to the circumstance of pending deals. Thomson Reuters locates pending deals in the periods in which they are announced, with related data adjusted at the time of deal closings.
Explanatory NotesExplanatory Notes
Thomson Reuters
p yp y
30
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