Highlights In Canadian Capital Provider Directory
We all know that 2008 was a tough for capital raising, and in terms of IPOs, it was theworst year in history with just a handful of companies managed to get their IPO out of theway.Canada is the last country that has fallen into recession thanks to its strong economy,surplus and the prolonged resources boom. It is still the world’s largest resourceseconomy despite the fact Australia is also fast catching up.In our research, we have seen many changes in the Canadian capital raising industry,there has been a fundamental shift for many capital providers.1.
Significant Decline in leveraged buy outs2.
Significant Decline in Management Buy Outs3.
Fundamental Shift towards Natural Energy and Resources4.
Shift towards renewable technologies and energies5.
Shift towards financial services6.
Changes in exit strategies7.
Changes in Investment mandate and sizeThe above are the main changes we have observed during the research. The credit crisishas caused a major impact to the venture capital and private equity markets, Canada,however, was relatively unaffected compared to US and UK markets, its lendingpractices and financial systems were more stringent than the other markets.There resources boom which ended in the 2
half of 2008 was another major impact tothe Canadian capital providers market, a large number of firms have changed theirinvestment mandate and made shifts towards energy and resources, this strategy,unfortunately did not work for many of them since mid 2008 when the commodities pricecollapsed.Another trend is shift towards renewable and environmental technologies, this wasinitially started because of the high oil price which has prompted a renewed interest inalternative energy and resources. As Canada is also a major uranium producing country,it also has a large number of uranium specialist funds and institutions which haveinvested in uranium projects worldwide.In terms of renewable energy, Canada is a global leader in a number of areas, especiallywaste management technologies and processes. It also leads in the world with a numberof geothermal rocks applications and energy storage solutions.Canadian institutions have also been very active in 2008 in other sectors – in 2008, anumber of investments have been made in the biotechnology sectors, the renewed interest