Over the past two decades, private equity firms have increasingly acquired companies across various sectors that provide critical services during emergencies, marking a shift in Canada’s so-called disaster economy. This encompasses businesses such as disaster restoration, emergency medical transport, surgical centres, and funeral homes—industries that Canadians rely on when they are most vulnerable.

This wave of consolidation has led to concerns about rising costs and declining service quality. As disasters become more frequent and severe due to climate change, and as Canada’s population ages, demand for these services is expected to grow significantly. In 2024, weather-related damages in Canada reached a record $8.5 billion, according to the Insurance Bureau of Canada. Simultaneously, healthcare expenses are projected to increase by $93 billion over the next decade driven in part by an aging population, based on research from the Conference Board of Canada.

Private equity firms view this expansion as a recession-resistant opportunity, investing heavily to gain control over these essential sectors. For instance, the disaster restoration industry, once dominated by local family-owned businesses, has experienced extensive consolidation since 2007, when TorQuest Partners first began acquiring companies nationwide. Since 2018, private equity has deployed more than US$6 billion into disaster restoration alone.

This consolidation has enabled large private equity-backed companies to influence pricing, often limiting competition and securing close relationships with insurance providers. Many firms carry significant debt from acquisition deals, compelling them to increase prices and implement cost-cutting measures. Such cutbacks can include reduced safety protocols and lower wages, which critics argue may compromise service standards.

As a consequence, Canadians have faced substantial insurance premium increases; home insurance costs have risen by 90 percent in Alberta and 84 percent in Ontario over the last ten years. Despite these shifts, private equity ownership frequently remains opaque because acquired firms retain their familiar branding and rarely publicize their new corporate affiliations. Customers usually are not billed directly, as many services are paid for by insurance companies or government programs, making it less visible how these changes affect final costs.

Beyond restoration, private equity investment has expanded into Canada’s medevac services and healthcare facilities. Studies from the United States indicate that private equity-owned medevac providers tend to charge higher fees and raise prices more aggressively than non-private equity competitors, raising concerns about similar trends emerging in Canada. One private equity firm, Kensington Capital Partners, now owns 53 for-profit surgical centres through its subsidiary Clearpoint Health Network, operating in six provinces.

The funeral home sector has also seen increased private equity involvement. In 2024, Canada’s largest funeral home was acquired by Birch Hill Equity Partners Management Inc. via its affiliate Viridian Acquisition Inc., reinforcing a continuing pattern of consolidation in this sensitive area.

As private equity firms continue to expand their footprint in the disaster economy, the result is a market where consumers have fewer alternatives during crises. Experts warn that this concentration diminishes the competitive pressures that once kept prices in check and maintained higher service standards, effectively monetizing Canadians’ vulnerability when disaster strikes.