What is the state of private equity in 2015? Torys’ annual Private Equity in Focus covers how 2014 M&A activity involving private equity has set the stage for this year’s transactions at three levels of focus: in the markets, in the deals and in the terms.
In the Markets - dynamics in the Canadian markets and their effect on private equity.
Private equity funds seized upon favourable market dynamics to exit investments, and also adjusted their investment tactics to address current market conditions. In-house expertise, industry specialization and a strong diligence focus are some of the themes emerging from 2014. Click here to read In the Markets.
In the Deals - current approaches dealmakers are using to seize new opportunities.
Industry participants are broadening the scope of the private equity space, from investment in sectors that have not historically been areas of focus, such as oil and gas, to taking a fresh look at familiar sectors. They are also exploring risk-sharing structures in response to high prices for good businesses. Click here to read In the Deals.
In the Terms - deal terms and what they say about the current M&A environment.
Current M&A deal terms show the continuing influence of a seller’s market in Canada—changes in indemnity terms and the growing use of representations and warranties insurance are just two examples illustrating this trend. Click here to read In the Terms.
This combination of trends is evolving as recent market turns, such as depressed oil and gas prices and a weak Canadian dollar, are yielding new opportunities for private equity. These opportunities, together with the adaptive strategies that PE sponsors in Canada continue to implement, are likely to make for another interesting year ahead in the Canadian private equity market.
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