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ARTICLE · 03 MARCH 2004

Private Equity Investment in Canada

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Canada has become an attractive source of investment opportunities for foreign private equity investors, particularly US investors. In addition to two large transactions led by KKR (the acquisition of Shoppers Drug Mart and the telephone directories business of BCE), there have been a significant number of private equity transactions in the $15-50 million dollar range in recent years. The Canadian private equity market is attractive for a variety of reasons including:

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This article is co-authored by Sean Farrell, Pollyanna Lord, Adam C. Maerov

Introduction  

Canada has become an attractive source of investment opportunities for foreign private equity investors, particularly US investors. In addition to two large transactions led by KKR (the acquisition of Shoppers Drug Mart and the telephone directories business of BCE), there have been a significant number of private equity transactions in the $15-50 million dollar range in recent years. The Canadian private equity market is attractive for a variety of reasons including:

  • Favourable Market Conditions.
    • The market is under-served. 
  • Economic Performance.
    • The Canadian economy has performed well relative to the US economy in recent years (eg, Canada’s inflation rate has been marginally lower than, and its economic growth has outpaced, that of the US). 
  • Jurisdictional Risk and Compatibility.

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