Organized jointly with the Desjardins Centre for Business Finance Innovation
Sponsors: TMX Group and Québec Bourse Inc.
Capital markets are experiencing changes that are fundamentally affecting the nature of corporate financing. While many of these trends are felt worldwide, they have their echo in Quebec and Canada. For instance, the market for initial public offerings (IPO), which used the premier financing mean for fast growth enterprises and the preferred exit strategy for private equity holders, has been in the doldrums for several years. Hence, investment opportunities for public capital markets’ investors are shrinking. In contrast, private capital markets are experiencing growth as many firms tap into private equity funds or the exempt market to raise capital. Ample liquidities, the governance and management approaches put forward by funds in the firms in which they invest, a long-term value creation perspective and the inconveniences, perceived or real, attributed to public markets underlie such trends. Moreover, in the case of Québec, the presence of large labour or cooperative funds further enhances private capital markets. Within that context, several questions can be put forward:
- What are the issues arising from the migration from public to private capital markets for corporate financing?
- What are the implications for long-term value and wealth creation as firms increasingly resort to private capital markets over public capital markets?
- What are the other trends underlying the evolution of capital markets and what impact will they have on firms, their owners, investors at large and governments?
- Do stock markets still have a role to play in financing new businesses? Under what conditions?
- Toward what kind of corporate financing model are we moving toward?
This CIRANO seminar aims to address and discuss these questions. The first half of the seminar will provide a state of the art overview of current trends in Canadian capital markets, from the perspective of academics having looked at such issues. A roundtable discussion between academic and business experts will take place in the second half of the seminar.
When: October 25, 2016, 2 :00PM – 5 :00PM
1130, Sherbrooke Street West, 14th floor
Montréal, Québec (Canada) H3A 2M8
Consult the speakers' presentations:
"What is Holding Us Back? Barries to SME Growth", Douglas Cumming
"Are the Canadian Public Markets Broken?", J. Ari Pandes
"Private Equity Funds and Value Creation Mirage or Real", Denis Schweizer
"Vers une analyse intégrée des marchés financiers québécois", Bryan Campbell, Michel Magnan
"Le financement des entreprises au Québec : Une question... de fonds !", Nicolas G. Chevalier