Q4 | Torys Quarterly • Fall 2021
Canadian Sector Report

Industries in Canada are transforming rapidly, and investors and sector participants are moving on new opportunities and avenues for growth. Read our analysis in the latest Torys Quarterly.


Financial Services and Investors

Canada’s financial services are meeting the challenges of regulatory oversight and bringing fresh opportunities to investors, which is stirring M&A. For institutional and other investors, emerging emphasis on longer-term assets, such as real estate and infrastructure, are generating creative approaches to investment.

Activity in the financial services—in face of large capital coffers and low borrowing rates—means there is increasing competition for assets in the space and valuations are soaring.
— Trends in financial services: M&A and capital markets

Energy and Resources

Rising commodity prices and a confluence of economic factors are driving growth in the energy sector. At the same time, climate change is steering energy and resource players in new directions as they leverage new technologies and opportunities.

Many of Canada’s largest energy sector participants have committed to substantial carbon reduction targets. . .this will require the funding of large-scale CCUS projects, electrification and fuel substitution projects, and significant investment in emerging clean technologies.
— Oil and gas: Green shoots take hold in the Canadian oil patch

Retail, Transportation and Technology

After the disruption of the pandemic, the economic recovery for some hangs in the balance. Another result of the pandemic is that the role of technology is becoming ever more critical to companies in retail and other areas where a digital presence is paramount for success. We are seeing the pull from all industries to integrate tech into their businesses resulting in exponential growth and transformation.

M&A activity in the EV space has surged; vehicle manufacturers and transit authorities will need significant financing to fully develop the required technologies and infrastructure solutions.
— Key forces driving change in the North American transportation sector

Life Sciences

The life sciences are experiencing a surge in growth. Players in the space will want to keep an eye on this fast-paced evolution while being mindful of the highly regulated nature of this sector.

Canadian scientific innovation has been world class and now with the increased access to capital, Canada is well poised to attract the top talent in the industry to lead its companies and bring cutting edge products to market.
— Life Sciences: Accelerated growth in Canada’s life sciences industry

Real Estate

Opportunities are increasing for investment in real estate in Canada. An aging population, a critical need for more infrastructure to support sectors like the life sciences, and heightened interest from investors in assets with long-term, stable returns are all driving activity in the sector.

The real estate industry has been transformed, and fund sponsors and investors are attuned to emerging opportunities, from prop tech, clean buildings, the changing dynamic of our work and personal spaces to supply chain and logistics considerations.
— Real estate and open-ended funds: latest trends

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