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Seminar: Corporate Financing on Capital Markets - Evolution or Revolution?

CIRANO

Tuesday 25 Oct 2016
From 2PM To 5PM

CIRANO Seminar 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 aimed to address and discuss these questions. The first half of the seminar provided 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 took place in the second half of the seminar.

 

Seminar Program

Location


1130 Rue Sherbrooke O #1400, Montréal, QC H3A 2M8, Canada