At McCarthy Tétrault, Shevaun McGrath leads on private equity and gender equity

Shevaun McGrath is one of the most recognizable names in Canadian private equity law, but her influence extends far beyond the deal table. As co-head of private equity and national leader of strategic initiatives at McCarthy Tétrault, McGrath has become a central figure in reshaping both legal practice and leadership inside one of the country’s most prominent firms.

“My practice started out as a more general M&A securities practice,” McGrath says. “[It’s] often the case with junior lawyers acting for various... public and private companies in the area of M&A and securities generally.” The pivot to private equity came a few years in, she adds, “in the first six or seven years of my practice,” driven by a string of buyout transactions for Canadian pension funds. “There were a few things that I liked about that practice and dynamic... the sophistication of the clients and the creativeness that was going into structuring various transactions.”

That ability to build long-term, deeply informed client relationships has become one of the defining features of her practice. “These were clients that were serial acquirers or disposers of businesses... that allowed me to know and understand my clients better than in the context of transactions just being a one-off experience,” she says. “That is rewarding for me... understanding not just the legal bits of the deal, but also the business motivations of my clients.”

Her relationship with Vista Equity Partners began with a high-stakes transaction – a multibillion-dollar take-private of DH Corporation. “It had a number of complex issues,” she says. “We did full regulatory filings under the Competition Act and the Investment Canada Act, and there were public debentures, so we had... the securities element to that as well.” That deal sparked an ongoing collaboration. “I had never worked with Vista before... and led that deal to closing... I continued to work with Vista on their transactions here in Canada,” she says. “That deal, in particular, kicked off that relationship.”

Earlier in her career, McGrath took on one of the most formative mandates in Canadian financial history: the restructuring of the asset-backed commercial paper market during the 2007–08 financial crisis. “That was a very bespoke transaction,” she says. “We were going back to basic principles of law... there was no precedent for that type of transaction in restructuring an entire market.” The complexity was massive. “It also took two years to close,” she adds. “We spent a lot of time ... figuring out solutions to get it across the line.”

Now, as co-lead of the firm’s private equity group, McGrath has a front-row seat to the pressure points shaping the industry. “Private equity sponsors have faced some headwinds in terms of the ability to fundraise,” she says. “The valuations for target companies across industries are relatively elevated, and that makes it difficult to make sure you make a good deal.”

Still, transactions are happening. “There is some pressure on sponsors to... dispose of their companies in a reasonable period of time,” she says. “The other interesting dynamic... is that our clients are dealmakers... always trying to find a way to unleash value... and have been very creative in doing so.”

That resilience hasn’t gone unnoticed, particularly as fundraising becomes more selective and capital deployment more cautious. “Well-known, established sponsors... have... experienced continued support from their investors,” McGrath says.

Beyond the commercial strategy, McGrath has used her platform to push for systemic changes in gender representation. “In finance generally, and certainly in law, there remains... an aversion, whether it’s the part of women or whether it’s... environmental... in terms of setting people up for success,” she says. The numbers speak volumes. “Out of law school... our hiring classes [are] 50/50, women and men. And then... as you head up the chain, it’s still a much... imbalanced atmosphere for women.”

Rather than accept that as the status quo, she insists on creating real pathways for progress. “I always felt as though I had mentors who cared that I was learning... and made it a really rewarding experience,” she says. “That applies equally to men and women... I don’t like reading articles that suggest that women should leave private practice because it’s a hopeless cause.”

McGrath’s leadership extends well beyond her client-facing responsibilities. As a member of McCarthys’ board, she played a central role in the firm’s CEO search last year. “This last summer... I sat on the board when we selected our new CEO, Sunil Kapur,” she says. “The process... was rather intense... a lot of time and effort goes in... the board runs a CEO selection process... we also consider external people... then we have interviews with each of the partners.” After months of interviews and evaluation, Kapur emerged as the board’s recommendation.

Soon after, Kapur invited her to join his senior leadership team – a decision she did not see coming. “He sent me a note... it was a coffee invite... and then he asked me to join, which I hadn’t anticipated,” she says. But the fit made sense. “I really support and like Sunil as a human... and thought this would be a tremendous opportunity... to look at our firm from a macro perspective.”

McGrath continues to maintain her private equity practice while overseeing major internal portfolios. “One is our clients and markets team,” she says. “We hired a new chief client officer... and I had a fabulous workshop this past week with our team across the country.” She also coordinates national strategy with regional managing partners and works closely with external strategic advisors. She can get involved in projects that interest her.

Despite everything else on her plate, McGrath doesn’t let mentorship slip through the cracks. “I certainly make a point of delivering the message we discussed to our various team members,” she says. “If you look at the people at our firm... you will see... a disproportionate number of women who... have their own practices, their own client relationships, their own strategic importance to the success of this firm.”

As for her message to the next generation of lawyers? McGrath doesn’t sugarcoat it. “This is a difficult job. It’s not an easy career,” she says. “But if you approach it with curiosity... it can be a very, very rewarding career.”

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