Private Equity Q1 2026
Q1 2026 Private Equity Heat Map
| Region | # of Deals | Average Deal | $M |
|---|---|---|---|
| Alberta | 10 | $ 10.2 million | $ 71.2 |
| British Columbia | 17 | $ 19.3 million | $ 135.3 |
| Manitoba | 3 | $ 1.0 million | $ 2.0 |
| New Brunswick | 1 | $ 0.0 million | $ 0.0 |
| Newfoundland and Labrador | 2 | $ 3.5 million | $ 7.0 |
| Nova Scotia | 0 | $ 0.0 million | $ 0.0 |
| Northwest Territories | 0 | $ 0.0 million | $ 0.0 |
| Nunavut | 0 | $ 0.0 million | $ 0.0 |
| Ontario | 15 | $ 4.3 million | $ 52.1 |
| Prince Edward Island | 0 | $ 0.0 million | $ 0.0 |
| Quebec | 90 | $ 43.8 million | $ 3,587.7 |
| Saskatchewan | 0 | $ 0.0 million | $ 0.0 |
| Yukon | 0 | $ 0.0 million | $ 0.0 |
Private equity investment reached $3.86B across 138 deals in Q1 2026, with activity increasingly concentrated in fewer regions. Quebec was the most active province, accounting for 90 deals and $3.59B, or 93% of total capital deployed. More than a quarter of these investments originated in the city of Montreal.
British Columbia was the second most active province, with $135M across 17 deals, while activity in Ontario saw only $52M across 15 deals.
Q1 2026 Private Equity Investment Activity: Quarter over Quarter
Following a record year driven by 9 mega deals in 2025, invested capital declined 12.5% quarter over quarter in Q1 2026, while deal count increased 11.3%. This shift reflects a reduced influence from mega-deals ($500M+). Average deal size was $27.9M, in line with Q1 2024 ($26.77M), indicating a moderation from the mega-deal driven activity observed over the past year.
A notable transaction this quarter was the privatization of HCM provider Dayforce. While the company was originally based in Toronto and continues to maintain a significant presence in Canada, its headquarters moved to Minneapolis following its 2012 acquisition by Ceridian to align with Ceridian’s headquarters. As a result, the transaction falls outside the scope of Canadian private equity activity captured in this report.
Q1 2026 Private Equity Investment Activity: Stage Breakdown
Buyout and add-on transactions remained central to private equity activity in Q1 2026, with nearly $571M invested across 28 deals, representing just over one-fifth of total transactions.
Minority investments, including growth and follow-on rounds, accounted for 31.2% of total capital, with nearly $1.2B invested across 32 deals. Their share of overall activity remained consistent with levels observed in prior quarters.
Q1 2026 Private Equity Investment Activity: Sector Breakdown
The Oil, Gas & Power and Mining & Resources sectors accounted for 55% of total capital deployed in the quarter, largely driven by two mega-deals closed in these sectors.
Industrial & Manufacturing and ICT remained the most active sectors by deal count, representing 30% and 16% of total transactions, respectively. This was followed by Agri-Forestry, Consumer & Retail, and Life Sciences, each accounting for approximately 8% of deal activity.
Q1 2026 Private Equity Investment Activity: Activity by Deal Size
With only two mega-deals closing in Q1 2026, nearly half of total capital was deployed in transactions below $500M. These deals represented 98% of disclosed transactions, with 85% of activity below $25M.
One of the two mega-deals closed this quarter was a $677M investment made in Nemaska Lithium, a Bécancour, Quebec-based producer of high-quality lithium hydroxide, from a syndicate composed of Investissement Québec and international investors.
Q1 2026 Top Disclosed Canadian PE Deals
| Company | Region | Disclosed Firms | Industry | Stage | $M |
|---|---|---|---|---|---|
| Nemaska Lithium inc. | QC | Investissement Québec, Rio Tinto | Diversified Metals & Mining | Follow-On | $ 678.8 |
| Velan Inc. | QC | Birch Hill Equity Partners Management Inc. | Machinery & Equipment | Buyout | $ 204.0 |
| Stay22 | QC | Summit Partners | Internet Software & Services | Growth | $ 167.0 |
| Groupe Somavrac (9554-3245 Québec inc.) | QC | Investissement Québec, Fonds de solidarité FTQ, Instar Asset Management Inc. | Transportation Services | Buyout | $ 156.9 |
| Champion Iron Limited | QC | La Caisse (formerly: Caisse de dépôt et placement du Québec (CDPQ)) | Steel | Other | $ 136.5 |
| SherWeb Inc. | QC | Investissement Québec | Computer Hardware & Services | Growth | $ 125.0 |
| Innovair Solutions inc. | QC | Fonds de solidarité FTQ | Manufacturing | Debt | $ 80.0 |
| Fit Foods | BC | Westcap Mgt. Ltd. | Functional Foods | Buyout | $ 31.3 |
| Carbotech International | QC | Fonds de solidarité FTQ, Fonds de solidarité FTQ | Machinery & Equipment | Debt | $ 5.0 |
| Groupe BPDL inc. | QC | Fonds régionaux de solidarité FTQ | Construction Materials | Follow-On | $ 3.3 |
Q1 2026 Top 10 Canadian Cities/Administrative Centres
- Montreal, QC24 DEALS$ 1,659.1M
- Calgary, AB10 DEALS$ 71.2M
- Toronto, ON10 DEALS$ 33.6M
- Coquitlam, BC7 DEALS$ 0.0M
- Quebec City, QC6 DEALS$ 34.8M
- Vancouver, BC6 DEALS$ 11.5M
- Trois-Rivières, QC3 DEALS$ 161.7M
- Winnipeg, MB3 DEALS$ 2.0M
- Bécancour,2 DEALS$ 680.4M
- Sherbrooke, QC2 DEALS$ 133.5M
Q1 2026 PE Deals with US & International PE Participation
Q1 2026 PE Exits
Exit activity remained constrained in the private equity market in Q1 2026, with no PE-backed IPOs recorded. M&A exits were the primary source of liquidity, generating $560M in proceeds across 11 transactions, followed by three exits via secondary buyout.
Q1 2026 Most Active PE Investors
Q1 2026 Most Active Private Equity Investors: Buyout & Add-ons
| Investor | # Rounds | Size |
|---|---|---|
| Fondaction | 2 | $ 67.7 |
Q1 2026 Most Active Private Equity Investors: Minority Investments
| Investor | # Rounds | Size |
|---|---|---|
| BDC Capital Inc. | 10 | $ 21.2 |
| ARC Financial Corp. | 3 | $ 57.5 |
| Fonds de solidarité FTQ | 3 | $ 4.3 |
| Investissement Québec | 2 | $ 803.8 |
| Desjardins Capital | 2 | $ 98.1 |
| Novacap Management Inc. | 2 | $ 28.5 |
| BMO Capital Partners | 2 | $ 5.2 |
| Fonds régionaux de solidarité FTQ | 2 | $ 4.9 |
Q1 2026 Participating Data Contributors
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The CVCA thanks the following firms who participated in its Q1 2026 survey:
Methodology
All data presented in this report is sourced from the CVCA Intelligence database and verified quarterly in collaboration with industry participants. For a detailed overview of our methodology, including definitions, inclusions, and data collection practices, please refer to our FAQ page.
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