Canadian venture capital and private equity funds disclosed $2.56 billion of new investments and $1.48 billion of new capital in the first quarter.
The Canadian Venture Capital and Private Equity Association (CVCA) and Thomson Reuters report that VC investment activity rose 55% to $460 million compared to the same period last year.
In contrast to investment activity, Canada VC fundraising activity in the first quarter of 2013 lagged activity of one year ago, when a significant number of major partnerships were closed. New capital committed to a dozen Canadian funds totaled $381 million in this period, down 44% from the same time in 2012.
In private equity, the number of disclosed investments totaled $2.1 billion for first quarter, which was in line with the amount reported in last year’s quarter. The key change for the period was a 47% decline in the number of deals, which was reflective of a handful of major transactions during the period.
“While the level of deal activity in Q1 was a bit disappointing, it is important to note, it follows a record year for domestic deal transaction activity in 2012,” says Peter van der Velden, president of the CVCA and managing general partner of Lumira Capital Corp.
Canadian buyout, mezzanine and other PE fund-raising activity in Q1, 2013 mimicked activity in 2012, with a total of $1.1 billion of new capital being committed to ten partnerships and other funds.