vc & pe canadian market overview // ytd q3 2017 · 2018-01-12 · so far in 2017, $2.6b has...

VC & PE CANADIAN MARKET OVERVIEW

// YTD Q3 2017

VENTURE CAPITAL & PRIVATE EQUITY CANADIAN MARKET OVERVIEW // YTD Q3 2017 | 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 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 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 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

CVCA thanks the following firms who participated in itsYTD Q3 2017 survey.

Alberta Teachers’ Retirement Fund (ATRF)

BDC Capital Inc

Caisse de dépôt et placement du Québec (CDPQ)

Capital Régional et Coopératif Desjardins

Dancap Private Equity Inc

Fondaction CSN

Fonds de solidarité FTQ

Fonds de solidarité FTQ (Regional)

Investissement Quebec

Ontario Teachers’ Pension Plan (OTPP)

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

Brookfield Asset Management

CAI Capital Management Co.

Carpedia Capital

CIEL Capital

Clairvest Group Inc.

First West Capital

Fulcrum Capital Partners

GrowthWorks Atlantic Venture Fund Ltd.

Highland West Capital

InstarAGF Asset Management

Ironbridge Equity Partners

Lex Capital Management

m2s Capital

Mink Capital

Mosaic Capital Corporation

OMERS Private Equity Inc.

Parallel 49 Equity

Persistence Capital Partners

PFM Capital Inc

Pillarfour Capital

PRIVEQ Capital Funds

Regimen Equity Partners

Roynat Capital Inc.

Seafort Capital

Searchlight Capital Partners

Stratagem Innovative Capital Partners

Swander Pace Capital

Tricor Pacific Founders Capital

TriWest Capital Partners

Westcap Mgt. Ltd

XPND Capital

Amorchem Venture Fund

Anges Quebec

Avrio Ventures Management Corp

Azure Capital Partners

Bioenterprise Capital Ventures

Brightspark Ventures

Chrysalix Venture Capital

CTI Life Sciences

Cycle Capital Management

Difference Capital

Emerillon Capital

Epic Capital

Espresso Capital Ltd.

Eventi Capital Partners

Evok Innovations

Freycinet Ventures

Georgian Partners

Golden Venture Partners

Green Acre Capital

GreenSoil Investments

iGan Partners

Information Venture Partners

Innovacorp

iNovia Capital

Lumira Capital

MaRS Catalyst Fund

MaRS IAF

McRock Capital

New Brunswick Innovation Foundation

Northhumberland CFDC

OMERS Ventures

Pangaea Ventures

Pelorus Venture Capital Ltd.

Plaza Ventures

Quark Venture

Real Ventures

Relay Ventures

Renewal Funds

Roadmap Capital

ScaleUP Ventures

Tactex Asset Management Inc.

Tandem Expansion

TandemLaunch

Top Renergy

Trellis Capital

TVM Life Science Management Inc.

Vanedge Capital Partners

VentureLink Funds

Versant Ventures

Version One Ventures

Wellington Financial

White Star Capital

Yaletown

PARTICIPATING VENTURE CAPITAL FIRMS


FOREWORD

Canadian VC Experiences Billion-Dollar Quarter; PE YTD Investment Eclipses 2016’s $13.8B

VENTURE CAPITALVenture capital investment in Canada experienced an extraordinary quarter in Q3 with $980M invested over 149 deals; representing an incredible 43% increase compared to the $683M in Q3 2016.

So far in 2017, $2.6B has been invested over 431 deals. The CVCA expects this investment pace to continue through the final quarter resulting in the final 2017-year total to top the $3.2B total dollars invested in 2016. There have been a record 13 mega-deals (deals $50M or more) so far in 2017 already surpassing the 10 mega-deals in 2016. Deals between $5M and $20M have been a driver of overall year-to-date activity; contributing 21% of the total number of deals and a third of total dollars invested. The average deal size in Q3 2017 was $6.04M; another high mark.

“We’ve been talking about the venture capital ecosystem doing a level step-up for a while now and we’ve had two consecutive years with a huge ramp up,” said Mike Woollatt, CEO, CVCA. “With the support of government programs like the Venture Capital Action Plan (VCAP) and the soon-to-be-deployed Venture Capital Catalyst Initiative (VCCI), Canadian companies are scaling. This is definitely a sign of the strength and quality of the VC ecosystem.”

Information and communication technologies (ICT) received the majority of VC investment so far in 2017; receiving 69% of total dollars invested or $1.8B over 271 deals. In 2016, ICT received 61% of VC dollars invested. Life sciences companies received just over a fifth of dollars invested ($554M over 79 deals) compared to 23% in 2016 or $736M over 106 deals.

$1B, representing 40% of VC dollars invested this year, were in Ontario-based companies, 35% ($900M) went to Quebec-based companies while 21% ($544M) was invested in British Columbia-based companies.

PRIVATE EQUITYCanadian private equity experienced another breakout quarter with $7.1B invested over 160 deals. Investment levels were lower compared to the $8.8B invested in Q2 2017 but an exceptional 133% higher than Q3 2016.

The $7.1B invested in Q3 2017 brings the PE year-to-date total to $20.9B over 447 deals—already surpassing the $13.8B invested over 543 deals in 2016. Three $1B+ deals accounted for 38% of the total dollars invested; the largest was the $4.8B privatization of Toronto-based DH Corporation in Q1. Montreal based companies comprised the other two including the $2.2B acquisition of Garda World Security Corporation and the $1.1B private placement in Osisko Gold Royalties Limited by CVCA members, Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.

“Canadian private equity is on trend to have another big year in 2017,” said Mike Woollatt, CEO, CVCA. “We’re seeing a healthy amount of activity that’s consistent with what we’ve been seeing in the Canadian growth industry over the last couple of years.”

Almost a fifth of (19%) of all PE deals this year have been closed in the industrial and manufacturing sector with the information and communications technology (ICT) sector receiving the second largest share (17%). This is a steady increase in these sectors since 2013 where ICT investment represented 10% and industrial and manufacturing saw a 14% share of total PE dollars invested.

Almost a quarter (71) of all Canadian private equity deals went to companies based in Montreal. 15% (44) deals were in Calgary-based companies while 13% (37) were in Montérégie, Quebec.

$980M in VC invested in Q3 2017, an 8% increase from Q2 and 43% increase compared to Q3 2016; $20.9B in PE has been invested over 447 deals so far in 2017, including three $1B+ mega-deals


VENTURE CAPITALCANADIAN MARKET OVERVIEW

// YTD Q3 2017


VENTURE CAPITAL HIGHLIGHTS // YTD Q3 2017

$980M was invested over 149 deals in the third quarter, which is the highest quarterly total in five years for both the number of deals as well as dollars disbursed.

Total VC dollars invested ($980M) was an 8% increase from the $905M in previous quarter and a staggering 43% increase from the $683M from the third quarter in 2016.

This brings the total invested in 2017 to $2.6B over 431 deals, and at this pace it is likely the tally for the final year will exceed 2016.

The top 10 VC deals accounted for 53% of the total dollars disbursed in Q3 and included these five mega-deals:

Leddartech, a Quebec-city based ICT company raised $128M from Fonds de solidarité FTQ

Montreal-based life sciences company Milestone Pharmaceuticals Inc. closed its $71M series C round from BDC Healthcare and Fonds de solidarité FTQ

Borrowell Inc., a Toronto-based ICT company closed a $57M round from an investor syndicate which included White Star Capital

Toronto-based ICT company Ritual closed a $53M round from an investor syndicate which included Golden Venture Partners

Kitchener-based Tulip.io Inc. closed a $50M series B round from US investors

YTD there have been a record number of mega-deals: 13 compared to 10 in 2016.

In addition, deals between $5M-$20M have been a driver of overall YTD activity, contributing 21% of the number of deals and a third of total dollars invested.

$1B or 40% of dollars invested this year were in Ontario-based companies with 35% ($900M) going to Quebec-based companies and 21% ($544M) to BC-based companies.

Toronto-based companies received 25% ($643M over 104 deals) of total dollars disbursed, with Montreal-based companies receiving a 22% share ($568M over 87 deals) and Vancouver-based companies a 15% share ($390M over 52 deals).

ICT companies grabbed the lion’s share (69%) of total dollars invested in 2017 ($1.8B over 271 deals); this compares to a 61% share in 2016, 58% in 2015, 64% in 2014 and 56% in 2013.

Life sciences companies received just over a fifth of dollars invested ($554M over 79 deals) which is only just below the 23% share from 2016 ($736M over 106 deals).

The market for exits continues at a healthy pace in 2017; so far there have been 27 exits totaling $1.5B compared to 33 exits totaling $584M last year.

Key Findings:


126

67

2

9

177 23

$900m

$1,048MOntario

$544MBC

$30MAlberta

$5MManitoba

Québec

Nova Scotia$49M

New Brunswick

Newfoundland& Labrador

$13M

$3M

$10MSaskatchewan

129

6

$2.6btotal431 dealstotal #

VENTURE CAPITAL HEAT MAP // YTD Q3 2017


TOTAL:365 DEALS

$1.9B

TOTAL:436 DEALS

$2.0B

TOTAL:545 DEALS

$2.3B

TOTAL:535 DEALS

$3.2B

TOTAL:431 DEALS

$2.6B

$ Millions Invested

# Deals

2013 2014 2015 2016 2017

0

20

40

60

80

100

120

140

160

180

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1000

Q2 Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$41

4

$33

9

$6

01

$54

0

$35

8

$41

4

$6

54

$6

13

$41

9

$6

65

$6

21

$58

5

$9

61

$71

2

85

81

10297

110

93

111

122 133

140 142

130

128

147

Q3

$6

83

Q4

$8

41

Q1

$71

8

$9

05

Q3

$9

80

127133

137

145149

QUARTER-OVER-QUARTER VC INVESTMENT ACTIVITY // 2013-YTD Q3 2017


Total Deals $ Millions

< $100K

$100 - $500K

$500K - $1M

$1M - $5M

$5M - $20M

$20M - $50M

$50M +

22

94

47

117

91

15

13

$1

$21

$31

$265

$853

$489

$941

VC ACTIVITY BY DEAL SIZE // YTD Q3 2017

Mega-deals already this year tops the number in each of the last 5 years

13


TOP DISCLOSED CANADIAN VC DEALS // YTD Q3 2017

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

ELEMENT AI INC QUÉBECBDC CAPITAL INC., DATA COLLECTIVE, FMR LLC (FIDELITY), HANWHA INVESTMENT CORP, INTEL CAPITAL, MICROSOFT VENTURES, NATIONAL BANK OF CANADA, NVIDIA CORPORATION, REAL VENTURES

ICT EARLY STAGE VC $141

LEDDARTECH INC. QUÉBEC FONDS DE SOLIDARITÉ FTQ ICT LATER STAGE VC $128

REPARE THERAPEUTICS INC. QUÉBECVERSANT VENTURE MANAGEMENT, LLC, MPM CAPITAL, BDC CAPITAL INC., CELGENE EUROPEAN INVESTMENT CO. LLC, FONDS DE SOLIDARITÉ FTQ, FONDS RÉGIONAUX DE SOLIDARITÉ FTQ

LIFE SCIENCES EARLY STAGE VC $91

VISION CRITICAL COMMUNICATIONS INC. BC GEORGIAN PARTNERS INC., W CAPITAL PARTNERS ICT SECONDARY VC $76

MILESTONE PHARMACEUTICALS INC. QUÉBEC

NOVO HOLDINGS A/S, BDC CAPITAL INC., FONDS DE SOLIDARITÉ FTQ, FORBION CAPITAL PARTNERS, TEKLA CAPITAL MANAGEMENT, DOMAIN ASSOCIATES, PAPPAS CAPITAL, AND GO CAPITAL

LIFE SCIENCES LATER STAGE VC $71

VISIER INC. BC ADAMS STREET PARTNERS, LLC, FOUNDATION CAPITAL, SORENSON CAPITAL PARTNERS, SUMMIT PARTNERS ICT LATER STAGE VC $61

BORROWELL INC. ONTARIO EQUITABLE BANK, FIRSTONTARIO CREDIT UNION, PORTAG3 VENTURES, WHITE STAR CAPITAL INC. ICT EARLY STAGE VC $57

FRESHBOOKS ONTARIO ACCOMPLICE, LLC, GEORGIAN PARTNERS INC., OAK INVESTMENT PARTNERS ICT EARLY STAGE VC $57

AURINIA PHARMACEUTICALS INC. BC ILJIN LIFE SCIENCE CO. LTD., LUMIRA CAPITAL INVESTMENT MANAGEMENT INC. LIFE SCIENCES PIPE $53

BREATHER PRODUCTS INC. QUÉBEC MENLO VENTURES, RRE VENTURES, SLOW VENTURES, VALAR VENTURES MANAGEMENT LLC ICT LATER STAGE VC $53


TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // YTD Q3 2017 #1 toronto

$643M 104 DEALSTotal Deals $ Millions

1. Toronto

2. Montréal

3. Vancouver

4. Kitchener, Waterloo, Cambridge

5. Ottawa

6. Fredericton

7. Halifax

8. Saskatoon

9. Estrie

10. Moncton

104

87

52

28

16

15

10

9

8

8

$643

$568

$390

$121

$113

$9

$40

$10

$18

$4

1

96

8

425

310

7


0

40

80

120

160

200

240

280

320

400

360

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2016201520142013 2016201520142013 2016201520142013 201520142013

$1,

946

$20

8

$14

$6

1

$18

5

2016 YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

234

274

328 331

271

113106

53

78

$48

8

$72

1

$73

6

$55

4

$39

4

$1,

787

$27

1

$1,

06

0 $1,

305

$1,

335

79

40 47 44 296

14 2027

14 $13

2

$17

7

$13

8

47

$27

$42

VC SECTOR BREAKDOWN // 2013-YTD Q3 2017

ICT CleanTechLife Sciences AgriBusiness

$ Millions Invested

# Deals


VC STAGE BREAKDOWN // 2013-YTD Q3 2017

0

30

60

90

120

150

180

210

240

300

270

$0

$160

$320

$480

$640

$800

$960

$1,120

$1,280

$1,440

$1,600

2016201520142013 2016201520142013 2016201520142013

$8

5

$13

5

$15

9

$21

4

$6

57

$1,

139

$8

24

$1,

06

8

$1,

210

$8

93

$1,

569

$1,

504

$1,

404

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

108

138

180177

142

178

219

263

106

178

117

135

93

102

$8

52

141

$15

6

Seed Early Stage Later Stage

$ Millions Invested

# Deals


VC EXITS* // 2013-YTD Q3 2017

M&A IPO** RTO

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES;

** IPO VALUATION

$ Millions Invested

# Deals

$0

$160

$320

$480

$640

$800

$960

$1,120

$1,280

$1,440

$1,600

0

5

10

15

20

25

30

35

40

50

45

2016201520142013 2016201520142013 2016201520142013

$6

83

$50

9

$1,

524

$58

4

$1,

107

$11

7

$19

$6

6

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

28

33

43

32

46

4

0 11

20 0

$41

7

24

3

$34

6

$12

9

$53

7


TOP DISCLOSED VC EXITS // YTD Q3 2017

VC INVESTORS COMPANY SECTOR EXIT TRANSACTION ACQUIRED BY $ MIL.

INOVIA CAPITAL, TERALYS CAPITAL, CLARIDGE, INTERMEDIA PARTNERS, GROUPE DYNAMITE

LUXURY RETREATS INTERNATIONAL INC. ICT M&A AIRBNB $393

CORE INNOVATION CAPITAL TIO NETWORKS CORP. ICT M&A PAYPAL $301

KENSINGTON CAPITAL, WHITECAP VENTURE PARTNERS, RADAR CAPITAL, WELLINGTON FINANCIAL REAL MATTERS INC. ICT IPO NA $157

FONDS DE SOLIDARITÉ FTQ, RHO CANADA VENTURES, SUMMIT PARTNERS, SKYPOINT CAPITAL CORPORATION ACCEDIAN NETWORKS INC. ICT M&A BRIDGE GROWTH

PARTNERS $133

BDC CAPITAL, LUMIRA CAPITAL, CTI CAPITAL ZYMEWORKS INC. LIFE SCIENCES IPO NA $87

KENSINGTON CAPITAL, NORTHLEAF CAPITAL, RECAPHEALTH VENTURES, DIFFERENCE CAPITAL, OMERS VENTURES, TELUS VENTURES, WELLINGTON FINANCIAL

VISION CRITICAL COMMUNICATIONS INC. ICT SECONDARY SALE GEORGIAN PARTNERS, W

CAPITAL $76


MOST ACTIVE VC FIRMS // FUNDS // YTD Q3 2017

MOST ACTIVE PRIVATE INDEPENDENT FIRMS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

REAL VENTURES 45 $396

500 STARTUPS CANADA 26 $11

CYCLE CAPITAL MANAGEMENT (CCM) 12 $112

INOVIA CAPITAL INC. 9 $112

IGAN PARTNERS INC. 9 $26

RELAY VENTURES 8 $82

WESTCAP MGT. LTD. 7 $2

GEORGIAN PARTNERS INC. 6 $206

PORTAG3 VENTURES 6 $122

LUMIRA CAPITAL INVESTMENT MANAGEMENT INC. 6 $74

RHO CANADA VENTURES 6 $47

YALETOWN PARTNERS INC 6 $32

MOST ACTIVE VC DEBT FIRMS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

ESPRESSO CAPITAL LTD. 64 $30

REAL VENTURES 9 $3

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) 4 $1

FIREPOWER CAPITAL 2 $0

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

SIZE OF TOTAL ROUNDS*

(CDN$ MIL)

CAPITAL RÉGIONAL ET COOPÉRATIF DESJARDINS (CRCD) 31 $222

FONDS DE SOLIDARITÉ FTQ 23 $495

OMERS VENTURES MANAGEMENT INC. 9 $177

FONDACTION CSN 8 $11

MOST ACTIVE GOVERNMENT FUNDS # ROUNDSSIZE OF TOTAL

ROUNDS*(CDN$ MIL)

BDC CAPITAL 24 $173

NEW BRUNSWICK INNOVATION FOUNDATION (NBIF) 20 $12

MARS IAF 17 $32

BDC IT VENTURE FUND 11 $128

INVESTISSEMENT QUÉBEC 8 $37

INNOVACORP 8 $17

BDC HEALTHCARE FUND 7 $262

BDC INDUSTRIAL, CLEAN AND ENERGY TECHNOLOGY (ICE) VENTURE FUND 7 $85

* TOTAL ROUND VALUES - INCLUDES ALL PARTICIPATING INVESTORS

# Rounds

Real Ventures

Capital Régional et Coopératif Desjardins (CRCD)

500 Startups Canada

BDC Sector Funds**

BDC Capital


New Brunswick Innovation Foundation (NBIF)

MaRS IAF

Cycle Capital Management (CCM)

BDC IT Venture Fund

OMERS Ventures Management Inc.

iNovia Capital Inc.

iGan Partners Inc.

45

31

26

25

24

23

20

17

12

11

9

9

9

$396

$222

$11

$475

$173

$495

$12

$32

$112

$128

$177

$112

$26

Size of Total Rounds* (Cdn$ mil)

** BDC HEALTHCARE FUND - 7 DEALS, $262M*; BDC IT VENTURE FUND - 11 DEALS, $128M*; BDC ICE FUND - 7 DEALS, $85M*


PRIVATE EQUITYCANADIAN MARKET OVERVIEW

// YTD Q3 2017


PRIVATE EQUITY HIGHLIGHTS // YTD Q3 2017

Q3 was another active quarter for Canadian PE with $7.1B invested over 160 deals. Although lower than the $8.8B invested in the previous quarter, it was a staggering 133% more than the $3.1B invested in the third quarter last year.

This brings the YTD total in 2017 to $20.9B over 447 deals, already surpassing the $13.8B invested over 543 deals in 2016.

Three $1B+ deals this year accounted for 38% of total dollars invested: the $4.8B privatization of Toronto-based DH Corporation, the $2.2B acquisition of Montreal-based Garda World Security Corp. and the $1.1B private placement in Montreal-based Osisko Gold Royalties Ltd. by Caisse de dépôt et placement du Québec (CDPQ) and Fonds de solidarité FTQ.

Deal activity in all small-to-mid market segments have already exceeded last year’s totals:

49 deals between $25M-$100M have surpassed the 2016 total (48) by 2% with a total value of $2.5B

22 deals between $100M-$500M have surpassed the 2016 total (14) by 57% with a total value of $4.5B

7 deals between $500M-$1B have surpassed the 2016 total (4) by 75% with a total value of $4.8B

Almost a quarter (71) of all PE deals went to Montreal-based companies, with 15% (44) invested in Calgary-based companies and 13% (37) to companies located in Montérégie.

Almost a fifth (19%) of PE deals this year have been closed in the industrial & manufacturing sector with ICT companies receiving the second largest share (17%). Both these sectors have been receiving a steadily increasing share of PE deal flow since 2013 when industrial & manufacturing captured only a 14% share and ICT a 10% share. Inversely, the oil and gas sector deal flow share has dropped from 19% in 2013 to a mere 9% YTD 2017.

There have been almost twice the number of PE exits (108) compared to 56 last year.

Secondary buyouts have contributed to more than half (52%) of the $6.1B in total exit value.

Four IPOs included the $445M dual listing of the iconic Canada Goose on TSX/NYSE and the $300M TSX-debut of Jamieson Laboratories Ltd.

Key Findings:


211514

5 3

$412m$10m

$1.5B

$4b

na

$6.7bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

40

$723MManitoba

4Prince Edward

Island

na1

naNew Brunswick

2

$13.4btotal

105 dealstotal #

PRIVATE EQUITY HEAT MAP // BUYOUT & ADD-ON DEALS ONLY // YTD Q3 2017


2425538

19 7

$2.0B$72m

$2.4B

$8.1b

na

$7.6bOntario

BCAlberta

Saskatchewan

Québec

Nova Scotia

78

$734MManitoba

5Prince Edward

Island

na1

naNew Brunswick

2

$20.9btotal 447 dealstotal #

PRIVATE EQUITY HEAT MAP // ALL PE DEALS // YTD Q3 2017


Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

0

20

40

60

80

100

120

140

160

180

200

$2,

530

$2,

933

$1,

846

$4,

120

$6

,277

$5,

250

$7,

80

4

$22

,851

$7,

053

$1,

86

9

$11

,36

7

$2,

60

0

$3,

221

$3,

370

57

81

48

84

64

81

88

101

91

104

117

113

124

146

134

139

$3,

06

8

Q3

$4,

142

Q4

$4,

98

3

Q1 Q2 Q3

111

176

160

$8

,817

$7,

143

2013 2014 2015 2016 2017

QUARTER-OVER-QUARTER PE INVESTMENT ACTIVITY // 2013-YTD Q3 2017

TOTAL:270 DEALS

$11.4B

TOTAL:334 DEALS

$42.2B

TOTAL:425 DEALS

$22.9B

TOTAL:543 DEALS

$13.8B

TOTAL:447 DEALS

$20.9B

$ Millions Invested

# Deals


TOP DISCLOSED CANADIAN PE DEALS // YTD Q3 2017

COMPANY PROVINCE FIRMS INVOLVED IN TRANSACTION SECTOR $ MIL.

DH CORPORATION (D+H) ONTARIO VISTA EQUITY PARTNERS BUSINESS PRODUCTS & SERVICES $4,800

GARDA WORLD SECURITY CORP. QUÉBEC APAX PARTNERS LLP, RHÔNE GROUP LLC OTHERS $2,200

OSISKO GOLD ROYALTIES LTD. QUÉBEC CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ), FONDS DE SOLIDARITÉ FTQ MINING & RESOURCES $1,050

TEEKAY OFFSHORE PARTNERS L.P. BC BROOKFIELD ASSET MANAGEMENT INC., TEEKAY OFFSHORE PARTNERS L.P. OIL & GAS, POWER $938

CANAM GROUP INC. QUÉBEC AMERICAN INDUSTRIAL PARTNERS (AIP), CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC (CDPQ)

INDUSTRIAL & MANUFACTURING $890

ARCTIC GLACIER HOLDINGS INC. MANITOBA H.I.G. CAPITAL, LLC, THE CARLYLE GROUP CONSUMER & RETAIL $723

OLD PSG WIND-DOWN LTD. BC ANTARAS CAPITAL, L.P., FAIRFAX FINANCIAL HOLDINGS LIMITED CONSUMER & RETAIL $575

LUNDIN GOLD INC. BC BLACKSTONE GROUP L.P., ORION RESOURCE PARTNERS (USA) LP MINING & RESOURCES $572

SANDVINE INC. ONTARIO FRANCISCO PARTNERS ICT $562

LOBLAW GAS STATION BUSINESS ONTARIO BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD BUSINESS PARTNERS LP CONSUMER & RETAIL $540


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 $

631

2016201520142013 2016201520142013 2016201520142013 201520142013

$8

49

$9

02

$1,

292

$5,

015

$6

,09

3

$6

,321

$3,

212

$4,

457

$3,

106 $

4,79

7 $6

,60

1

$97

5

2016

$4,

80

0

2016201520142013 2016201520142013

$3,

405

$10

,910

$4,

782

$4,

034

$3,

250

$3,

300

$4,

80

0

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

$14

,927

86

116

183

362

3155 56

48 24 27 3114

110 7 74 3 7 3 3 2N/A2 1 0 1

$1,

403

$2,

80

4

$2,

788

$2,

157

$2,

482

$1,

153

260

4922

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

PE ACTIVITY BY DEAL SIZE // YTD Q3 2017

TOTAL:1007 DEALS

$4.8B

TOTAL:239 DEALS

$11.6B

TOTAL:118 DEALS

$25.1B

TOTAL:18 DEALS

$26.4B

TOTAL:29 DEALS

$20.2B

TOTAL:4 DEALS$23.0B

$ Millions Invested

# Deals


TOP 10 CANADIAN CITIES // ADMINISTRATIVE CENTRES // YTD Q3 2017 #1 montréal

$5B 71 DEALS

4

2 10

6

31

5 7

98

Total Deals $ Millions

1. Montréal

2. Calgary

3. Montérégie

4. Toronto

5. Vancouver

6. Nord-du-Québec / Abitibi-Témis

7. Québec

8. Saguenay-Lac-St-Jean/Côte-Nord

9. Bas-Saint-Laurent

10. Chaudière-Appalaches

71

44

37

32

26

25

16

15

12

12

$5,076

$2,058

$423

$5,116

$2,348

$257

$89

$49

$146

$1,027


84

71

55

44

40

38

26

25

24

12

12

11

5

# Deals $ Millions

Industrial & Manufacturing

ICT

Consumer & Retail

Mining & Resources

Agri-Forestry

Oil & Gas, Power

Business Products & Services

Life Sciences

Automotive & Transportation

CleanTech

Others

Financial

Real Estate

$1,431

$2,234

$2,295

$2,321

$1,103

$2,959

$5,123

$242

$474

$435

$2,265

$46

$16

industrial & manufacturing

PE SECTOR BREAKDOWN // YTD Q3 2017

most active sector

84 deals


PE EXITS* // 2013-YTD Q3 2017 $ Millions Invested

# Deals

* INCLUDES TRANSACTIONS WITH UNDISCLOSED VALUES;

** IPO VALUATION

2016201520142013 2016201520142013 2016201520142013

$2,

932

$8

,243

$2,

88

8

$30

6

$8

45 $29

4

$9

30

$2,

161

$1,

672

YTDQ3 2017

YTDQ3 2017

YTDQ3 2017

3

$9

,876

$11

,437

$11

,537

$6

,476

$2,

106

0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

0

10

20

30

40

50

60

70

80

90

100

110

5 61 4

4744 42

50

96

10 10 74

$3,

167

7

IPO** M&A Secondary Buyouts


TOP CANADIAN PE EXITS // YTD Q3 2017

SELLER COMPANY BUYER $ MIL.

APAX PARTNERS LLC GARDA WORLD SECURITY CORP. RHONE CAPITAL $2,200

H.I.G. CAPITAL, LLC ARCTIC GLACIER HOLDINGS INC. CARLYLE PARTNERS LP $723

MILESTONE PARTNERS LLC PRECISION PARTNERS HOLDING CO. AK STEEL CORP. $457

BAIN CAPITAL CANADA GOOSE, INC. NA - IPO ON TSX & NYSE $445

EDGESTONE CAPITAL PARTNERS, BREGAL CAPITAL, PINE BROOK PARTNERS, SOROS STRATEGIC PARTNERS AURIGEN CAPITAL LIMITED PARTNERRE $375

CCMP CAPITAL ADVISORS LLC JAMIESON LABORATORIES LTD. NA - IPO ON TSX $300

CLAIRVEST GROUP INC. CRS CONTRACTORS RENTAL SUPPLY LIMITED PARTNERSHIP SUNBELT RENTALS OF CANADA INC $275

RIVERSTONE HOLDINGS AND NGP ENERGY CAPITAL MANAGEMENT NORTHERN BLIZZARD RESOURCES INC. WATEROUS ENERGY FUND (WEF) $244

ARC FINANCIAL CORP. UGR BLAIR CREEK LTD. PAINTED PONY PETROLEUM LTD. $224

BROOKFIELD PRIVATE EQUITY NORBORD INC. NA - SALES OF SHARES ON TSX $173

Garda World Security Corp.

bought by RHONE CAPITAL $2,200m#1


MOST ACTIVE PE INVESTORS // YTD Q3 2017

* TOTAL DEAL VALUES – INCLUDES ALL PARTICIPATING INVESTORS

most active PE FIRM

97 DEALSFonds de solidarité FTQ

97

82

23

23

22

15

12

11

10

6

# Deals $ Millions*


Capital Régional et Coopératif Desjardins

Caisse de dépôt et placement du Québec (CDPQ)

Fondaction CSN

Investissement Québec

PFM Capital Inc.

Espresso Capital Ltd.

BDC Capital Inc.

First West Capital

XPND Capital

$3,671

$673

$3,075

$347

$779

$267

$15

$181

$20

$17


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 /CVCACanada

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]

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