Top 7 Toronto Private Equity Firms You Should Know

You’ve come to the perfect place if you want to learn everything there is to know about private equity in Canada. We will discuss the top private equity firms Toronto has, their services, wages, and cultures in this article. For software Engineers/Developers and Founders who want to move to Canada, this article will help you understand a few thing about equity

A private equity firm is a type of investment firm that receives money from investors and then reinvests it in several ways to maximize returns. Wealthy investors, such as professional investors, HNIs, institutional investors, and others, are among the private equity organizations’ investors. Several tactics, such as venture capital, stock buybacks, and others, are used by these businesses to gain equity ownership in companies. 

SERVICES OFFERED BY TORONTO PRIVATE EQUITY FIRMS

• Creating and Organizing Financial Resources:

No amount of money provided to enterprises will be sufficient unless leading private equity firms assist them in their formation and discuss their organizational structures.

• Accounting for funds:

Private equity firms assist their client companies with fund formation and management, as well as fund accounting.

• Global PE tech services:

PE isn’t just a local phenomenon; it’s become a global phenomenon. Leading Toronto private equity firms provide a global view through global private equity technology services to help organizations get a handle on the situation.

• Administration of the funds:

Private equity businesses in Canada aren’t just a source of capital. They also provide a wide range of complementary services. Canadian private equity firms provide fund administration services to their portfolio companies as an essential auxiliary, assisting them to move from point A to B.

• Transferring secretarial and agency functions:

Aside from the varying deal sizes, Toronto Private Equity firms also provide switching agency and corporate secretarial functions to companies that are linked to PE firms.

• Additional services:

In addition to the foregoing, leading Toronto private equity firms also provide additional services such as global holding, wealth management, foreign exchange, and stocks lending.

All of these services are offered to private companies to help them move quickly from where they are now to where they want to be in the future. Additionally, these services can be utilized by a wide range of monetary institutions, both big and little.

CULTURE OF PRIVATE EQUITY IN CANADA

Canada and the United States have quite distinct work cultures. Most private equity funds in Canada are modest and medium-sized, with fewer mega-funds than in the United States, which has a far smaller private equity industry.

You should expect to put in anywhere from 70 to 100 hours per week, depending on the company and the amount of money you’re responsible for. Work-life harmony will therefore never be possible for the average person.

But if you stay in private equity in Toronto, Canada for 2-4 years, you will advance up the ladder and work fewer hours than your colleagues.

SALARY SCALE IN TORONTO PRIVATE EQUITY FIRMS

It should come as no surprise that the pay in the private equity industry is very high. Top Toronto private equity firms have a straightforward structure. Income for first-year private equity employees is as shown below, and as you go up the ladder, your salary will rise accordingly —

• It is possible to earn $150,000 a year in Canada’s private equity sector if you join the pension funds.

• At this point in your career, you can expect to earn $200,000 a year if you join a mid-cap private equity company. Investing in a mid-cap fund versus a pension fund has distinct advantages and disadvantages. Yes, the annual salary difference is $50,000.

It’s evident from the statistics provided above that your take-home pay will be significantly influenced by your choice of private equity funds. Remember that your pay is directly correlated to the number of hours you put in. Additionally, the number of hours worked is strongly influenced by the available cash.

TOP 7 TORONTO PRIVATE EQUITY FIRMS

A private equity business invests with a long-term investment strategy in mind, usually five to seven years. Let’s take a closer look at the private equity firms Toronto list, Canada.

1. The Altas Group, Inc.

Toronto, Canada, is home to Altas Partners, which was established in 2012. Foundations, public pension funds, endowments, family offices, and other investment banks’ money are all under the management of this firm. Altas Partners specializes in equity investments of $250 million and up to $1 billion. High-quality firms with attractive cash flows, returns on re-invested capital, market leadership, and limited danger of obsolescence are what the company invests in, according to the statement.

An investment firm that focuses on long-term profits through the active ownership of high-quality firms is called Altas on its website.

2. The Birch Hill Equity Partners

This Toronto-based private equity business was founded in 1994 and manages more than $3 billion in funds. Between $30 million to $600 million, the mid-market enterprises are targeted. The company has made over 60 investments in its 26-year span, with 52 of them being actualized.

For example, the corporation says, “We work with growth-oriented companies in Canada and the United States to establish top worldwide enterprises in a variety of industries.” one of the top private equity firms in Canada.

3. Georgian Partners

Georgian Partners was created in Toronto in 2008 and is headquartered there. The corporation likes to invest in the fields of business software, information systems, and artificial intelligence, respectively. It invests in Canadian and American enterprise software startups with a monthly recurring income of at least $500,000 and seeks investments ranging from $20 million to $50 million. Some of the Georgian Partners’ clients include Top Hat, Shopify, FreshBooks, and Ritual, all of which are Canadian businesses.

Data-driven insights can help CEOs handle the most pressing issues they confront as they build their firms, according to the company.

4. Asset Management of Brookfield

Brookfield was established in 1899 as an alternative asset management firm. Real estate, renewable energy, infrastructure, and private equity are some of the company’s main areas of interest. Toronto, New York City, London, Rio de Janeiro, and Sydney are all locations where it has offices. The firm manages $575 billion in assets and operates in over 30 countries around the world.

Investors should expect that the corporation would focus on “active operational enhancements” to boost investment performance.

5. Onex

At the heart of Onex is an investment management company created in 1984. Onex shareholder capital is part of the $37 billion in assets managed by the corporation. Its shareholders, high-net-worth individuals (HNIs), and investment firms rely on it to handle their money. Onex Partners and ONCAP are the company’s two private equity platforms.

6. Torquest Partners: 

In 2002, this Toronto-based private equity firm was established. Consumer products, chemicals, industrial products and services, and financial services are the primary industries in which it invests. Middle market firms are Torquest’s specialty, and they work closely with management to help them grow.

7. A.R.C Financial Corp., Inc.

To put it simply, ARC Financial claims to be Canada’s leading energy-focused private equity firm. The ARC Energy Funds have raised CAD$6.0 billion since the company was founded in 1989. As of this writing, the organization has invested in more than 180 businesses. They are committed to offering comprehensive investment research and corporate advisory services.

This is what ARC Financial Corp. states: “ARC Financial Corp. is a long-term investment associate that significantly supports to value creation.”

FAQ

1. How much of the portfolio is made up of private equity?

Endowment funds often devote between 20% and 40% of their portfolios to private equity, while wealthy people typically allocate more than 20% of their holdings to private equity.

2. In private equity, what are the “performance fees”?

Some funds charge a fee based on how well they perform. A percentage of the fund’s profits is paid to the investment manager as an incentive fee. To put it another way, GAV (also known as G-NAV) is the fund’s value before performance fees but after all other expenditures.

3. Do PE businesses pay well?

Yes, given the circumstances. Depending on the size of the company and your performance, you may expect to earn between $150K and $300K per year in pay and bonuses. This is because these companies have access to a variety of revenue streams, some of which are specific to their sector.

4. What is the salary of the CEO of a private equity firm?

The average income for a Managing Director, Private Equity Investments is $226,440, with a normal range of $153,653 to $260,940.

5. Is Canada’s private equity industry regulated?

In Canada, private equity firms and their managers are not subject to a specific regulatory authority.

CONCLUSION

There is always a degree of uncertainty in Toronto private equity firms. However, only a select fraction of the world’s most prestigious corporations are unaffected. Since the beginning, if you want to stay in Canada, you should aim to join the big companies, or the alternative is to leave and work in the US private equity sector. If such is the case, the only prerequisite would be a highly regarded US university degree.

Cover image: Swaritadvisors