Fasken has authored the Chambers Private Equity 2025 Canada Guide, where we highlight the most critical legal and strategic issues shaping private equity M&A in Canada.
The full guide is available here. This bulletin provides a snapshot of our insights, including:
Overview
- 2024 was a robust year for private equity (PE) investment in Canada, with the highest investment levels in the last seven years.
- PE exits rebounded in 2024 after a down year in 2023, with 86 exits all from M&A activity (including secondary buyouts) and no initial public offerings (IPOs).
- 2025 has started strong for deal activity, but headwinds from trade negotiations and interest and inflation uncertainty could stress deal volumes for the remainder of the year.
Deal Activity & Structure
- A defining theme of 2024 was mega privatisation deals, with aggregate deal value exceeding C$15 billion and being the highest on record.
- The Canadian market nonetheless remains dominated by mid-market deals in the C$25M–100M range, with Québec and Ontario leading in deal volume and value.
- Secondary buyouts generated 70.6% of exit value with C$4.7 billion realised over 22 exits.
- Earn-outs and contingent consideration remain common and have often become increasingly creative, particularly in competitive auctions.
Legal & Regulatory Developments
- Foreign Investment – Canadian regulators have been applying greater scrutiny of foreign acquisitions, particularly in relation to critical minerals and energy.
- Competition/Antitrust – Amendments to Canada’s Competition Act in 2025 expanded private rights of action (e.g., abuse of dominance, deceptive marketing and greenwashing), potentially heightening litigation risk in certain areas.
- Indigenous Groups – Recent regulatory and political developments are combining to create unique opportunities and business models in Canada involving Indigenous groups, including transaction and business structures involving PE/indigenous co-ownership.
Fasken has extensive experience advising on all aspects of private equity, capital markets, and M&A in Canada. We would be pleased to discuss any aspect of our guide or your business with you.
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