The investment climate is looking rosier, according to a survey by Canada’s Venture Capital & Private Equity Association (CVCA). According to the research, carried out in collaboration with McCarthy Tétrault LLP, there is a greater optimism regarding the investment climate in Canada for both private equity and venture capital.

The Private Capital Pulse Survey highlights the intentions and expectations of CVCA members with regards to the deployment of capital and exit transactions over the next six months.

“We learned that CVCA members intend to focus more capital on new investments in the next six months. Members are also more confident about the exit environment for both venture capital and private equity as compared to past survey results,” said W. Ian Palm, partner at McCarthy Tétrault LLP.

“Clearly, the outlook for the industry is positive. Private equity investment appears to be holding onto the solid impetus developed in 2011. This is good news for our members,” stated Gregory J. Smith, CVCA president and managing partner at Brookfield Financial. “But on the other hand, disappointing results in the first quarter of 2012 for the venture capital market underscore the importance of taking steps to address this formidable challenge. Our members are looking forward to finding creative solutions.”

Among other survey findings were the following:

  • 78% viewed the investment pace over the next six months as more active than or at least consistent with the past six months;
  • less than 15% of respondents felt that now was a worse time to make new private equity or venture capital investments, as compared to six months ago;
  • the Canadian investment climate for private equity and venture capital is significantly better than in Europe, Africa and the Middle East, slightly better than in the U.S., Asia-Pacific and Latin America, and slightly worse than in China and India; and
  • fewer respondents expected that venture capital and private equity investors will have difficulty exiting their investments, as compared to past survey results from November 2011.

Copyright © 2020 Transcontinental Media G.P. Originally published on

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