Prominent investors at the SuperReturn conference in Berlin raised concerns that investors are paying too much in acquisitions to get rid of excess cash on hand. Executives at Hamilton Lane and Canadian pension giant PSP Investments—which has US$153 billion in assets—expressed particular concern. (Reuters)
Talking point: Several investors drew parallels to the frenzied private-equity buying that preceded the 2008 financial crisis. Concerns about an economic downturn aren’t limited to the private-equity industry, as several of Canada’s leading VCs told my colleague Jessica earlier this year. For Canadian companies, the buying frenzy isn’t necessarily a bad thing, at least in the short term. Several private-equity firms have recently made major investments in Canadian companies including $115 million in Toronto-based fintech company Vena. Earlier this week, a U.S.-based private-equity firm bought a division of Montreal-based Cogeco Communications for US$720 million.