What Is Private Equity, and Why Is It Booming in Canada?

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Private equity isn’t just a buzzword thrown around on Bay Street — it’s a powerful investment model that’s reshaping how Canadians build wealth, fund businesses, and diversify portfolios.

At Rabideau Law, we help clients cut through the complexity and launch investment structures designed for long-term success. Whether you’re an entrepreneur raising capital or an investor seeking returns beyond the stock market, understanding private equity is the first step.

What Is Private Equity?

Private equity refers to capital investments made directly into private companies — companies that are not publicly traded on a stock exchange. Investors provide funds in exchange for ownership, often through structured vehicles like limited partnerships (LPs) or mutual fund trusts (MFTs).

These investments are typically:

  • Illiquid (not easily sold)
  • Long-term
  • Higher risk, higher reward

Why Is Private Equity Booming in Canada?

1. Low Interest Rates & Market Volatility

Traditional investments (like bonds or index funds) haven’t been yielding high returns. Private equity offers a compelling alternative — one where investors have more control and upside.

2. Tax-Efficient Structures

Canadian law supports tax-efficient entities like LPs and MFTs. Investors can defer taxes or reduce exposure through customized structures — something we regularly advise on at Rabideau Law.

3. Innovation & Startups

Canada’s startup ecosystem is thriving. From tech to real estate, private equity is fueling the next generation of growth.

4. Institutional Momentum

Pension funds, family offices, and HNWIs are allocating more to private equity than ever before. This trend is trickling down to emerging fund managers and experienced entrepreneurs alike.

How Can You Participate?

To get involved, you need more than capital — you need the right legal structure to protect your interests, attract investors, and stay compliant with tax and securities laws.

The most popular structure? The LP/GP model — which we’ll explore in detail in our next blog.

How Rabideau Law Can Help

We’ve helped clients across Canada structure:

  • Private equity funds
  • Real estate syndications
  • Mutual fund trusts
  • Cross-border investment vehicle

Let us help you build the foundation — from setting up the GP to drafting your Limited Partnership Agreement to registering your Mutual Fund Trust with CRA.

Book a consultation today. Let’s turn your vision into a fund.