Private Equity - Canada | Statista Market Forecast

The deal value in the Private Equity market is projected to reach US$12.32bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2025) of 4.68% resulting in a projected total amount of US$12.89bn by 2025.
The average size per deal in the Private Equity market amounts to US$176.00m in 2024.
From a global comparison perspective it is shown that the highest deal value is reached United States (US$594.00bn in 2024).
In the Private Equity market, the number of deals is expected to amount to 111.80 by 2025.

Definition:

Private equity involves partnerships that buy, manage, and eventually sell companies. These firms manage funds for institutional and accredited investors, who commit significant capital for extended periods. Private equity funds can acquire entire private or public companies or participate in buyouts with other investors, but they typically avoid holding stakes in publicly traded companies. The Private Equity market encompasses a broad range of deal types that involve acquiring equity ownership in private companies. This market typically includes leveraged buyouts (LBOs), growth capital, Carve-outs, and other forms of equity investments that target mature businesses with the potential for operational improvements and value creation. The market presented here does not include Venture Capital investments. While both Private Equity and Venture Capital involve equity stakes in companies, Venture Capital specifically focuses on high-growth potential startups, while private equity firms invest in established companies with the aim of increasing the value of these companies before selling their investment after several years.

Additional information:

The market contains the following KPIs: the deal value, the number of deals, the average deal size as well as the assets under management (AUM). Key players in this market are companies such as Blackstone, The Carlyle Group, KKR, Goldman Sachs, General Atlantic, and Warburg Pincus.

For more information on the data displayed, use the info button right next to the boxes.

Leveraged Buyouts (LBOs)
Growth Capital
Carve-Outs
Distressed Buyouts
Secondary Buyouts

Venture Capital
Venture Debt
Traditional bank loans
Digital capital raising

The Private Equity market in Canada has been facing a substantial decline, influenced by factors like economic uncertainty, rising interest rates, and shifts in investor sentiment, all contributing to decreased deal-making activity and reduced capital availability in the sector.

Customer preferences: Investors in the Private Equity market in Canada are increasingly drawn to sectors that align with sustainability and social responsibility, reflecting a growing consumer preference for environmentally and socially conscious businesses. This trend is fueled by younger demographics prioritizing ethical investments and transparency in corporate governance. Additionally, the rise of technology adoption and digital transformation has shifted focus towards sectors like fintech and health tech, as consumers seek innovative solutions that enhance convenience and efficiency in their daily lives.

Trends in the market: In Canada, the Private Equity market is increasingly focusing on sustainable investing, with firms prioritizing environmental, social, and governance (ESG) criteria in their portfolios. This shift reflects a broader commitment to responsible investing, driven by consumer demand for ethical business practices. Additionally, the surge in technology adoption is steering investments towards sectors like fintech and health tech, as market participants recognize the potential for innovation to disrupt traditional frameworks. This trend will likely influence deal structures, requiring industry stakeholders to emphasize transparency and sustainability to attract capital and maintain competitive advantage.

Local special circumstances: In Canada, the Private Equity market is uniquely shaped by its diverse geography and multicultural population, fostering a rich ecosystem for innovative financing solutions. The presence of numerous natural resources has led to a strong focus on environmental sustainability, pushing firms to integrate ESG factors into their investment strategies. Moreover, the regulatory environment, characterized by supportive government policies and incentives for sustainable business practices, encourages investments in clean technology and renewable energy sectors. This convergence of local factors enhances the appeal of Canadian private equity, attracting both domestic and international investors.

Underlying macroeconomic factors: The Canadian Private Equity market is significantly influenced by overarching macroeconomic factors, particularly central bank policies and interest rates. When the Bank of Canada adjusts interest rates, it directly affects borrowing costs for private equity firms, influencing their leverage and overall investment strategies. Lower interest rates typically enhance access to capital, encouraging more aggressive investment in diverse sectors, including technology and sustainability. Conversely, rising rates can restrict capital flow and increase financing costs, leading firms to adopt more cautious investment approaches. Additionally, overall economic health indicators, such as GDP growth and unemployment rates, shape investor confidence, ultimately impacting deal flow and exit opportunities in the private equity landscape.

Data coverage:

The figures are based on deal value, number of deals, the average size of each deal, and assets under management within the Private Equity market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, total investment (% of GDP), household wealth (per Adult), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are total investment (% of GDP), household wealth (per Adult), number of high-income persons, and number of high-net-worth individuals (HNWI).

Additional notes:

The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

In the last decades, private equity has emerged as a dominant force in global finance, reshaping industries and driving economic growth worldwide. After the peak experienced in 2021, however, private equity activity slowed down in 2022 and 2023, due to multiple factors such as inflationary headwinds, rising interest rates, geopolitical unrest and general uncertainty. With an estimated value of nearly four trillion dollars, private equity dry capital - a term commonly used in the private equity world to refer to committed, but unallocated capital - reached unprecedented heights in 2023. A high level of this capital means that private equity firms have unspent cash reserves. Among the most influential private equity firms worldwide, the Blackstone Group is the largest in terms of funds raised.