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Home > Canada > CHART OF THE DAY: Plunging private equity deal flow in Canada

CHART OF THE DAY: Plunging private equity deal flow in Canada

Oct. 13, 2020 by Anthony DeCandido

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The economic distress from the coronavirus pandemic is hitting the Canadian private equity market hard. The number of deals reached in Canada this year through Oct. 6 fell to 194, which at that pace would represent a 60% decline from 2019, according to PitchBook. The value of the deals plunged as well, falling to $26.8 billion. This represents a $53.2 billion decrease, or 66%, from 2019, indicating that many investment managers have suspended or canceled previously agreed-upon deals.

Source: PitchBook

The COVID-19 pandemic has brought significant economic hardship for many industry verticals, particularly those in real estate and retail. It’s in those sectors, as well as others, that the support of a private equity partner may bring additional liquidity, operations and network support, and the needed expertise to struggling companies. Once volatility and COVID-19 concerns subside, corporates will continue to need to recapitalize and strategically access the capital markets, and private equity can help.

For more information on how the coronavirus is affecting midsize businesses, please visit the RSM Coronavirus Resource Center.

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Filed Under: Canada, Coronavirus, Financial Services Tagged With: coronavirus, Covid-19, private equity

About Anthony DeCandido

@adecandido1

Anthony is a Partner at RSM US LLP with over thirteen years of experience at the firm. He serves as the Connecticut Financial Services Leader and his client responsibilities includes private equity funds, including those with multiple co-investment vehicle arrangements, hedge funds, fund-of-funds, real estate investment companies and asset lending businesses.

In January 2018, Anthony was selected as a senior analyst in RSM’s cutting edge Industry Eminence Program, which positions its senior analysts to understand, forecast and communicate economic, business and technology trends shaping the industries RSM serves. These senior analysts advise clients on conditions impacting middle market leaders. Anthony’s focus is on the financial services industry.

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