Unveiling a historic year, driven by mega and equity funds' surge
In 2023, Canadian investment funds marked a remarkable year in fundraising, amassing a total of $213.05bn.
This achievement was detailed in Canada's first comprehensive investment fund fundraising report by CPE Analytics, highlighting the sector's robust financial activity. The report, released on Newswire Canada, provides an insightful overview of the landscape of investment funds in Canada.
A key highlight of 2023 was the significant role played by mega fund fundraising. Out of 2,869 investment funds, 411 funds, which represent 14 percent of the total, raised $500m or more each. These funds collectively contributed $174.22bn, accounting for an impressive 82 percent of the total fundraising amount.
Additionally, an elite group of 31 funds, or 1 percent of the total, succeeded in raising $1bn or more each, amassing a combined total of $73.84bn. This amount represents 35 percent of the entire fundraising amount for the year.
In stark contrast, approximately 21 percent of the funds, each raising $1m or less, managed to gather a total of only $194m.
The fundraising landscape was dominated by equity funds, with 1,280 such funds raising a substantial $83.55bn. These funds led all other types in both volume and average fundraising, with an average of $65m per fund or $62m per closing.
Money market funds, though fewer in number, excelled in terms of average fundraising size per fund. The 57 money market funds raised a total of $22.58bn, leading all funds in average fundraising per fund with $396m, or $337m per closing.
Geographical analysis of the fundraising efforts revealed a significant concentration in Ontario and the City of Toronto. Ontario-based funds, numbering 1,893, raised an aggregate of $154.99bn. The City of Toronto-based funds, numbering 1,658, led the way with a collective fundraising amount of $149.8bn.
Other regions such as Quebec, Manitoba, British Columbia, and Alberta also contributed notable amounts to the total fundraising.
Investor demographics highlighted a strong preference for local investment, with most of the money coming from Canadian investors, particularly from Ontario.
Ontario investors contributed $129.19 billion, accounting for 61 percent of the total fundraising. Quebec, Alberta, and Manitoba followed with substantial investments of their own.
In the arena of mega fundraising, BlackRock Asset Management Canada Limited stood out as a frontrunner, successfully raising $33.8bn across 7 funds. SLGI Asset Management Inc. (Sun Life) and other prominent fund managers also made significant contributions in this category.
