2003 was full of challenges for Canadian private equity professionals, being the third consecutive year of a down-cycle in global markets – though more hopeful signs of a transition were evident in the final months. In addition, the national pool expanded in the past year due to successful fundraising initiatives.

The Goodman and Carr LLP-McKinsey & Company Private Equity Activity Survey 2003, conducted by Macdonald & Associates, found private equity capital under management in Canada totaled $48.6 billion, up from $40.5 billion in 2002. While part of this increase is linked to changes in the survey sample, another key factor was new capital inflows – particularly in the buyout sector, which has seen considerable evolution in recent years. Of the $48.6 billion captured by the survey, 47 percent (or $22.5 billion) was situated in the venture capital industry.

Private Equity Canada 2003 consists of two volumes:

	Volume 1, produced by Goodman and Carr LLP, provides an in-depth review of key market facts. It describes the main characteristics of Canada’s private equity market, the preferences of its participants, and the market activity over the past year.
	Volume 2, produced by McKinsey & Company, draws on the authors’ and McKinsey’s extensive experience in serving institutions and other private equity market participants – as well as McKinsey’s proprietary research – to offer a perspective on the Canadian private equity market and the approaches many GPs and LPs are taking to generate returns in this market.

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