When confronted with one of the most challenging market environments in decades, CG Capital Markets teams demonstrated remarkable drive and creativity supporting companies and investors through persistent headwinds.
Canaccord Genuity Capital Markets
CG Capital Markets is differentiated by our ability to get things done in difficult markets. We
are steadfastly committed to supporting key growth sectors of the global economy, and driven
to help entrepreneurs and innovators to advance their strategic and financial objectives.
$17.5 billion
proceeds raised in fiscal 2023
Rising financing costs, heightened volatility in
financial markets and broader economic uncertainties
contributed to a decline in initial public and secondary
offerings during fiscal 2023.
359
transactions in fiscal 2023
Notwithstanding the dramatic reduction in transaction
activity that persisted throughout the fiscal year, we
continued to defend and build upon our strong market
position among the league table leaders in each of
our geographies.
Global Capital Markets Revenue
(C$ millions, fiscal years ended March 31)
The reduced revenue contribution from our global capital markets division reflects the challenging backdrop that persisted through the 12-month period and led to reduced activity levels in our core sectors and verticals, consistent with broader industry trends.
Fiscal 2023 was a challenging year across our industry, and the small-cap and growth-oriented sectors and investors that we serve were particularly impacted.
Capital Markets Revenue by Geography
(Fiscal years ended March 31)
Capital Markets Revenue by Activity
(Fiscal years ended March 31)
The broad market decline in new issue activity that had been widely anticipated following two years of unprecedented highs was the primary driver of the 73% year-over-year reduction in fiscal 2023 investment banking revenue.
The diversification away from higher-risk growth assets negatively impacted demand for new issues in several of our core sectors. Unsurprisingly, the metals and mining sector was strongest for our underwriting activities, accounting for 51% of our investment banking revenues, primarily within our Australian, Canadian and UK businesses.
M&A activities remained robust throughout most of the fiscal year and helped offset the impact of subdued new issue and agency trading activity.
While advisory activity in our core sectors remained strong in the first half of the fiscal year, we experienced a more difficult environment for completions in the second half. Full-year advisory revenue declined by 26% when compared to the record set in the previous year. The technology and consumer sectors were most active in this segment, reflecting our investments in expanding our US and European capabilities in these sectors, and the benefit of increasing collaboration between these teams.
Despite the dramatic reduction in industry-wide activity levels, we did not retrench from our commitment to fully supporting growth companies and investors.
CG trading and specialty desks remained steady, supporting liquidity and seamlessly supporting clients in all our geographies through bouts of increased volatility. Our sales and research teams mobilized to create thousands of touchpoints for our clients through conferences, corporate access roadshows, and timely and informative market analysis and updates.
Although several transactions continue to be delayed as companies await a more stable environment, our clients remain highly engaged.
In an environment of rising interest rates, supply chain pressures and inflation, the demand for capital among small and growth-oriented companies remains high. We are cautiously optimistic that our investing clients will become more active in supporting higher quality new issues in time. And finally, while we are not expecting the IPO market to reopen quickly, history tells us that there can be a strong bounce-back when it does, and CG is very well positioned to recapture our historic leadership in this segment.
(1) Australia wealth management revenue was previously recorded as part of Canaccord Genuity Capital Markets Australia. Commencing in Q3/20, it is disclosed as a separate operating segment.