Remarkable growth in the Canadian buyout market led to record levels of private equity investment last year, according to a report.
Canada’s Venture Capital and Private Equity Association(CVCA)and research partner Thomson Financial say the total value of disclosed investments into companies made by buyout funds—which include pension funds—amounted to US$10.9 billion, more than double the $4.5 billion reported in 2005.
“There is clearly no shortage of attractive investment opportunities in the Canadian buyout sector,” says Rick Nathan, the president of CVCA.
Of the total $10.9 billion in reported buyout investment, approximately $3 billion was invested by Canadian-based funds(27%), with $4.1 billion invested by U.S.-based funds and $3.9 billion from buyout funds based in the rest of the world.
On a global basis, Canadian private equity investors went on a shopping spree. Funds invested $13.4 billion in the global private equity markets in 2006, up sharply from the US$5.4 billion invested in 2005.
However, the CVCA says the exact amount of private equity buyout data can be difficult to determine because financial details aren’t always disclosed and some deals aren’t even reported.
For the story, Private equity: why invest?, click here.
And to read the fifth part of our Alternative Investment Guide, The inner workings of private equity, click here.
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