TORONTO - CVCA- Canada’s Venture Capital and Private Equity Association together with research partner, Thomson Reuters, released Q1 2009 investment and fundraising data for the buyout industry that point to a slowdown in activity in Canada, comparable to the global slowdown in the buyout industry in the quarter.

“It is not surprising that the buyout industry’s investment and fundraising levels have subsided in the first quarter,” said Gregory Smith, President of the CVCA. “The worldwide economic turmoil that began in Q4, 2008 continued in Q1 2009 and our industry, in common with most economic sectors, has not been immune from its effects.”

There were 18 completed and pending buyout transactions in Canada in Q1 2009, 10 of which had a disclosed value of $0.6 billion, compared to 22 such transaction in Canada in Q4 2008 also 10 of which had a disclosed value of $0.6 billion. In Q1 2008, there were 33 completed and pending deals 9 of which had a disclosed value of $2.4 billion.

Foreign investors have similarly retrenched their investments in Canada in Q1 2009 as they contributed $529 million, down approximately 75% from just over $2 billion in Q1 2008.

After three very strong fundraising years from 2006 to 2008 when the buyout industry raised close to $20 billion, fundraising paused during the first quarter.

“The fundraising record of the last three years combined with the relative strength of Canadian financial institutions have resulted in Canada’s buyout industry still having considerable capital available for deployment” said Mr. Smith, “As a result, Canada’s buyout industry is well-placed to meet the financing needs of Canadian businesses in 2009.”