Technology-Based Reverberations: The Impact On New Investments And Exits In Canadian Private Equity

Earlier this year, our private equity team  identified the technology sector to be an area gaining increasing momentum throughout 2019 for both Canadian and international investors. In August, we assisted McRock Capital in its $80 million initial closing of its second venture capital fund, dedicated solely to investing in the global trend around the Industrial Internet of Things ("IIOT"). Investors included not only large institutional Canadian entities such as BDC Capital, Export Development Canada and Alberta Enterprise Corporation, but also some significant international players, including Cisco Investments, Shell and Mitsubishi. The impact of technology on the private equity space is evident under three distinct categories: growing investments in technology; exits from certain traditional assets; and the necessity for private equity firms themselves to adopt internal technological practices in order to keep up with fast-changing industries and companies alike.