Optimism prevails among Canadian institutional investors for 2021

Torys partner Guy Berman was interviewed by The Globe and Mail to discuss Torys’ PE Pulse 2021 survey findings.

The second annual survey features responses from over 100 Canadian private equity and pension fund leaders who have shared insight on the current climate of the private equity sector.

A key trend highlighted in the report is Canadian institutional investors’ growing appetite to invest more in tech companies—such as Airbnb, DoorDash or Nuvei—before they go public. Speaking on this trend, Guy told The Globe that the buoyancy of the tech sector throughout the pandemic, has cemented investors’ confidence.

“During the pandemic, the tech sector showed enormous resiliency, with strong performance from both public and private companies,” Guy said.

“For investors, that experience strengthens conviction on this theme.”

Read: PE Pulse 2021

But while technology remains the sector of choice for dealmaking opportunities, other industries such as industry/agriculture, entertainment, personal services are gaining interest from Canadian institutional investors.

Guy also spoke about the strength of Canadian institutional investors’ investment strategies and noted that over the years, they have built robust relationships with tech entrepreneurs and fund managers, and engage in co-investment opportunities which have lower fees and the potential to be highly profitable.

The Globe reported that although investment strategies are strong, the survey found that 82% of respondents were still concerned about overpaying on acquisitions and cited our publication, noting that “although our survey results reflect the resilience and optimism in Canadian private equity, the pandemic crisis is not over yet, and most respondents identified it as the top challenge for 2021.”