PE Opportunities and Trade in the Spotlight at CVCA Invest Canada

Written By Kevin Zhou

Opportunities for private equity (PE) investment were front-and-centre at CVCA Invest Canada ’25 in Calgary from May 27 to 29. The event is Canada’s biggest showcase of PE and venture capital and Bennett Jones was a Platinum Sponsor of this year’s sold-out gathering.

The conference brought together private equity’s most influential leaders and senior-level investors, who shared their strategic insights on where opportunities lie for PE in an uncertain economy.

Here are the key takeaways for private equity from the panel discussions at CVCA Invest Canada ’25.

PE Investment in Defence

The growing need for defence spending is creating new opportunities for PE in Western countries and Canada is no exception. The current NATO target for defence spending is 2 percent of GDP and could increase to as much as 5 percent. Canada presently spends about 1.37 percent of its annual economic output on defence.

Panelists emphasized that Canada should evolve its private equity and venture capital investment models to support some national defence-related sectors, including cybersecurity, energy security and AI, which are now considered priority areas under national security frameworks. This would involve enhancing R&D incentives, strengthening domestic manufacturing capabilities, and improving talent mobility. An improved climate for investment can both support national security and help PE funds capitalize on increased defence spending.

Energy and Renewables

Panelists discussed the role of PE in the energy transition, where the renewable energy sector will continue to gain traction. Existing energy infrastructure will need to be maintained and partially replaced with the shift to lower-carbon sources of power.

The rise of data centres is leading to an exponential increase in electricity demand and opportunities for investment. Recent announcements of new data centres across Canada bolster this trend and many see the country as a potential leader in building out AI infrastructure. Alberta has an opportunity to capitalize with its abundant natural gas reserves and carbon sequestration capacity.

Succession Planning and Private Equity

There are opportunities for private equity as businesses plan for succession and brace for the “silver tsunami” of aging ownership in Canada. Many organizations face uncertain futures, including SMEs without heirs or formal plans to transition ownership to the next generation. While this trend presents risks to economic continuity, it also opens the door for private equity funds to acquire and grow these organizations. Some panelists noted that policy and private equity efforts should focus on facilitating transitions from founders and ensuring that business remain operational and growth-oriented.

A Bright Spot in Services

Global trade has historically shown resilience and creativity, despite the ups and downs that volatility can bring. The growth of the Canadian services sector—notably cybersecurity and AI—was highlighted as a bright spot. Services are less constrained by borders and offer new opportunities for domestic firms to scale globally. Canada’s exporters and policy makers were encouraged to take a long-term view on trade.

Trade Diversification is Essential

Trade diversification is necessary not only to expand market access but also to mitigate supply chain risks. Canada has a strong track record of securing free trade agreements with international partners, and these markets should now be developed more aggressively. Current US-Canada tensions should be seen as an opportunity to make the Canadian economy more self-reliant and dynamic.

Diversified trade in Canada means eliminating internal trade barriers to allow for the free movement of goods and labour within the country. This issue is at the top of the agenda for Canadian leaders. Shortly after the conference at the first minister’s meeting in Saskatoon, Prime Minister Carney and provincial premiers focused on how to make greater interprovincial trade a reality.

At Invest Canada ’25, the CVCA extended a special thanks to Bennett Jones’ Gary Solway, the association’s retiring Corporate Secretary, who has served the CVCA since 2001.

To discuss opportunities in any of these areas please contact Kevin Zhou or a member of Bennett Jones Private Equity & Investment Funds team.

Bennett Jones Private Equity & Investment Funds Practice

The Bennett Jones Private Equity & Investment Funds group is a leader in Canada. Our clients include sophisticated financial sponsors who are looking to balance risk with expected return and who require tailored advice from the initiation of the investment phase to exit. Bennett Jones represents all sides in private equity transactions, with particular depth acting for both US and Canadian sponsors.

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