The number of private equity deals executed in Canada fell sharply in this year’s first half,
according to data from industry tracker PitchBook.
The data shows that only 27 private equity deals closed during June this year, down 47% from
51 deals carried out in June 2021.
Private capital invested also reached a record low in this year’s first quarter at $1.4 billion, down
46% compared to $2.6 billion invested during the same period a year ago, according to the
Canadian Venture Capital & Private Equity Association.
The decline is being blamed on a slowdown in the economy prompted by rising interest rates
and inflation.
Analysts say the slump in private markets is likely to further weigh on Canada's economy and
markets as capital is harder to obtain or being withheld.
Private capital usually comes from institutional investors such as pension funds and insurance
companies. But those players are now de-risking their portfolios and hoarding cash as markets
fall further into a bear market, defined as a decline in stocks of 20% or more from recent highs.
Related Stories
