2013 REPORT - Best year since 2007 for venture capital invested in Québec, as
activity in the buyout and private equity market remain at high levels
MONTREAL, Feb. 27, 2014 /CNW Telbec/ - A total of $588 million was invested in
Québec's venture capital (VC) market in 2013, up 46% from 2012 and the
highest amount since 2007. Dollars invested in the buyout and private equity
(PE) market remained at a high level, substantially above those recorded in
2011, 2010 and 2009. These observations are drawn from the 2013 annual report
on activity in the VC market and the buyout and PE market in Québec, compiled
by Thomson Reuters and released today by Réseau Capital.
Venture capital in Québec reaches its highest level in six years
Investment activity on the North American market was more dynamic in 2013. The
Canadian market saw 31% growth with $2 billion in activity, while the U.S.
market showed a more modest 7% advance, at $29.4 billion. But the Québec
market, with $588 million invested - up 46% - took top spot with its highest
level since 2007, the record year in the previous market cycle. Québec
transactions accounted for a higher proportion of all dollars invested in
Canada, at 30%.
"It is worth noting that U.S. and overseas funds played a decisive role in
Québec in 2013, injecting $195 million, which is 84% more than in the
previous year," says Jack Chadirdjian, President and CEO, Réseau Capital.
"This clearly shows Québec's ability to attract new capital from abroad to
support development of our local companies."
The size of VC financing rounds also rose significantly in Québec, going from
average investments of $2.7 million per company in 2012 to $3.9 million in
2013. Various companies at later stages of development, such as Enerkem,
iBwave Solutions, Distech Controls and Beyond the Rack, contributed heavily to
this trend, picking up substantial investments. The non-technology ($208
million) and clean technology ($200 million) sectors were in the forefront of
VC investment growth in Québec in 2013, accounting for 36% and 34%
respectively of the amounts invested, a trend also seen elsewhere in the
country. The information technology and life sciences sectors, meanwhile,
lagged in comparison to 2012.
Buyout and private equity market remains vigorous
Despite a 20% decline in the buyout and PE market compared to 2012, an
exceptionally active year in Québec, investments totalled $3.6 billion, well
above the levels recorded in 2011, 2010 and 2009. Control-stake acquisitions,
growth investments and other PE transactions in Québec numbered 120 in 2013,
almost the same as in 2012.
"While large-cap transactions remain the market's driving force, in particular
with the $1.1-billion investment in ArcelorMittal Mines Canada and $1.1
billion in Atrium Innovations, small and medium-sized enterprises account for
nearly two-thirds of transactions, with disclosed values of $10 million or
less," Mr. Chadirdjian says, adding: "Although these transactions account for
only 7% of all investments recorded in this market, we are seeing a major
trend, indicating how important this market is in stimulating and supporting
the growth and innovation projects of Québec SMEs."
Québec also accounted for the largest number of Canadian buyout-PE
transactions in 2013, at 37%, and it brought in 29% of the dollars invested,
behind Ontario, which posted slightly less than half the total. Canadian
fundraising activity in buyouts, mezzanine investments and other types of PE
transactions broke all earlier records at $16.1 billion, more than triple the
$4.9 billion committed in 2012. The previous record year dates back to 2006.
About Réseau Capital
Réseau Capital, founded in 1989, is the only private-equity association that
brings together all stakeholders involved in the Québec investment chain. Its
mission is to contribute to the development and efficient operation of the
private-equity industry, which plays a major role in the development and
financing of businesses in Québec. Réseau Capital has more than 425 members
representing private-equity, tax-advantaged and public investment companies,
as well as banks and insurance companies, accounting and law firms, angel
investors, and many professionals working in the field.
SOURCE Réseau Capital
Source: Jack Chadirdjian President and CEO Réseau Capital
For information: Josée Massicotte 514388-0169 firstname.lastname@example.org
Valérie Gonzalo 514 626-6976 email@example.com
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-0- Feb/27/2014 13:00 GMT
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