The Canadian buyout industry saw a slowdown in line with the global slowdown for buyouts in the first quarter, Canada’s Venture Capital and Private Equity Association (CVCA) said Tuesday.

The CVCA and Thomson Reuters released first quarter investment and fundraising data for the buyout industry showing that there were 18 completed and pending buyout transactions in Canada in Q1, compared to 22 transactions in Q4 2008 and 33 deals in the same quarter last year.

Also, 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, they said.

“It is not surprising that the buyout industry’s investment and fundraising levels have subsided in the first quarter,” sys 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.”

“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” added Smith, “As a result, Canada’s buyout industry is well-placed to meet the financing needs of Canadian businesses in 2009.”

IE