The View From Up North: Who Represented 2015's Biggest Capital Market Deals?

It’s time we look back at the previous year in the Canadian capital markets to determine who provided counsel on the juiciest Canadian debt and equity raises.

Canada View From Up North It’s that time again. The time when we look back at the previous year in the Canadian capital markets to determine who provided counsel on the juiciest Canadian debt and equity raises. Thanks to our friends at the Legal Post who compile this terrific data every year.

As always, we’re interested not only in the overall market, but also how the incumbent Seven Sisters fared against the carpet-bagging Internationals.

Without further ado…

The Legal Post reports that Canadian firms in 2015 provided counsel to 385 Issuer deals for a total value of $133.6 billion. Comparing that to 2014, there were a lot more deals in 2014 (488), but the total value of deals was slightly less ($130.1 billion). Thus, it appears Canadian firms were less busy, but worked on a higher dollar value per deal, viz., in 2015, the average deal was $34.7 million. In 2014, the average deal was just $26.7 million.

Here are some superlatives:

2015 Top Counsel to Issuers (by total deal value):  Norton Rose, who advised issuers on a total of $30.7 billion worth of deals.

2015 Top Counsel to Underwriters (by total deal value): McCarthys, who advised underwriters on a total of $19.7 billion worth of deals.

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2015 Top Counsel to Issuers (by number of deals): It’s a tie! Osler and Blakes each advised on 42 deals.

2015 Top Counsel to Underwriters (by number of deals): Stikeman, who advised on 63 deals.

2015 Top Non-Bay Street Firm: Props to Calgary firm Burnet, Duckworth who pulled in a total of 25 deals (both issuer and underwriter) without a Bay Street presence. Well done.

2015’s Biggest Equity Deal: Blakes represented the issuer and Osler represented the underwriter for Element Financial Corp.’s $2.8 billion equity raise.

2015’s Biggest Debt Deal: McCarthys represented TD Bank for a $2.7 billion debt raise. Simpson Thatcher also assisted on the issuer side. Morrison & Foerster represented the underwriter.

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Now let’s take a look at the Seven Sisters vs. The Internationals. This year we’re going to include Gowlings, who will soon finalize its merger with international firm, Wragge Lawrence.

2015 Issuers’ Counsel (Seven Sisters vs. Internationals)

Total Deal Value (millions) Rank by Deal Value Total Number of Deals Rank by Number of Deals
Norton Rose 30,678.23 1 37 4
Osler 25,619.54 2 42 1
McCarthys 19,344.73 3 38 3
Blakes 15,882.74 4 42 1
Torys 11,662.37 5 34 5
Stikeman 8,268.70 6 29 6
Davies 2,437.55 10 6 15
Goodmans 1,746.97 13 13 9
Dentons 1,113.41 15 6 15
Gowlings 95.2 22 3 19
Baker & McKenzie 8 32 1 30
DLA Piper 3.5 35 2 21

Thoughts: As mentioned above, Norton Rose has worked its way to the top of this table. In 2014 (see below), Norton Rose was second in this category.  As you’ll notice, it goes Norton Rose, followed by all seven of the Seven Sisters, then the remaining Internationals. Thus, although Norton Rose has done really well here, the remaining Internationals still have a long way to go to catch the incumbent Seven Sisters (like from here to Mars).

2015 Underwriters’ Counsel (Seven Sisters vs. Internationals)

Total Deal Value (millions) Rank by Deal Value Total Number of Deals Rank by Number of Deals
McCarthys 19,679.89 1 49 2
Stikeman 16,052.84 2 63 1
Osler 13,424.43 3 27 4
Blakes 10,501.15 4 44 3
Norton Rose 7,877.27 5 15 7
Torys 7,482.01 6 22 5
Goodmans 4,259.26 7 11 9
Dentons 2,746.77 9 8 12
Davies 1,129.65 12 8 12
Baker & McKenzie 83.14 19 3 19
Gowlings 71 20 4 17
DLA Piper 2.04 28 4 17

Thoughts: McCarthys is the king of this table for the second year in a row. Not surprisingly, the Seven Sisters dominated this category. I am surprised to see DLA Piper did way worse in 2015 than it did in 2014 as Davis LLP. At least in 2014, Davis LLP had an okay showing with 12 total deals. In 2015, with the supposed benefit of the DLA brand, DLA/Davis advised on only 6 deals for an aggregate of $5.54 million. I don’t think DLA will be tweeting those stats with pride.

Now, I don’t know what DLA’s Canadian strategy is, but I have to think getting a piece of the lucrative capital markets work is part of that plan. They have a long, long way to go (like from here to Uranus) to reach a competitive spot in this high-value, high-prestige practice area. Put differently, I doubt Norton Rose lawyers are waking in a sweat worrying about DLA pilfering their clients.

With respect to the Seven Sisters, we might have to recategorize Davies Ward as a Seven Step-Sister. For a firm that some think is the best business firm in Canada, it’s definitely bringing up the rear for the Seven Sisters. In 2014, it did 19 deals (issuer and underwriter). In 2015, it did only 14 deals. Goodmans had the next fewest for the Sisters with 24 deals.

Maybe Davies lawyers just have to work harder? I joke, it’s a play on the “Slavies” thing.

Here are the 2014 tables for your review and comparison. Please feel free to parse the data in any way that makes you happy.

2014 Issuers’ Counsel (Seven Sisters vs. Internationals)

Total Deal Value (millions) Rank by Deal Value Total Number of Deals Rank by Number of Deals
McCarthys 22,496.09 1 42 3
Norton Rose 18,829.25 2 31 5
Blakes 17,286.13 3 52 1
Osler 15,870.21 4 43 2
Torys 10,437.41 5 30 6
Stikeman 9,209.78 6 41 4
Davies 5,650.46 7 11 13
Goodmans 3,890.80 9 21 8
Dentons 1,049.89 16 7 16
Davis (now DLA Piper) 681.66 17 8 15
Baker & McKenzie 623.5 18 2 31
Gowlings 266.58 23 6 18

2014 Underwriters’ Counsel (Seven Sisters vs. Internationals)

Total Deal Value (millions) Rank by Deal Value Total Number of Deals Rank by Number of Deals
McCarthys 16,300.24 1 64 1
Stikeman 14,106.56 2 62 2
Blakes 11,383.25 3 54 3
Osler 8,149.22 5 23 6
Dentons 6,878.18 6 25 5
Torys 5,861.10 7 29 4
Goodmans 3,524.91 8 12 15
Norton Rose 3,395.00 9 17 10
Davies 664.12 16 8 17
Gowlings 48.39 22 3 20
Baker & McKenzie 29.57 23 4 18
Davis (now DLA Piper) 1.85 28 4 18

That’s the View From Up North: Have a great deal-making week.


Steve Dykstra is a Canadian-trained lawyer and legal recruiter. He is the President of Steven Dykstra Law Professional Corporation, a boutique corporate/commercial law firm located in the greater Toronto area. You can contact Steve at steve@stevendykstralaw.ca. You can also read his blog at stevendykstra.wordpress.com, follow him on Twitter (@Law_Think), or connect on LinkedIn (ca.linkedin.com/in/stevedykstra/).