Private Equity Deals in Canada Surge to Record $56 Billion Amid Economic Uncertainty
Private equity activity in Canada has reached unprecedented levels, with deals totaling $56.5 billion in the first three quarters of the year. The Canadian Venture Capital and Private Equity Association reports 483 transactions, fueled by four major privatizations including Garda World Security Corp.'s $14-billion deal and CI Financial's $12.1-billion acquisition by an Abu Dhabi sovereign wealth fund.
The surge comes as Canada's economy shows signs of slowing, with potential recession risks from U.S. tariffs. Companies increasingly favor private equity over volatile public markets, despite the Toronto Stock Exchange's 24% year-to-date outperformance against the S&P 500's 17% gain. This marks a dramatic reversal from 2022-2023's record-low deal volumes of $14.7 billion and $10 billion respectively.
