Imperial Capital Group is only weeks away from wrapping up a seventh mid-market fund at its $650 million hard cap. Imperial Capital Acquisition Fund VII, launched in December, has already raised or hard-circled commitments above its $500 million target, Managing Partners Jeff Rosenthal and Justin MacCormack told PE Hub Canada. They expect to see a final close at $650 million in April. If this happens, the fund will be the largest in the Toronto private equity firm’s three-decade history, exceeding by 30 percent the $500 million secured by Fund VI in 2017.
3 min read · 15 March 2019
Canadian specialty finance firm Crown Capital Partners has provided an additional $5 million to Triple Five Intercontinental Group Ltd, a Calgary-based explorer, developer and producer of petroleum and natural gas. The financing adds to a $15 million loan provided last year. Triple Five is currently generating about 5,100 barrels of oil-equivalent production per day from eight Alberta wells, of which about 81 percent is natural gas and 19 percent is natural gas liquids. It will use the deal's proceeds to support growth initiatives. Crown is investing from its $300 million special situations fund, Crown Capital Partner Funding.
2 min read · 15 March 2019
Lightspeed POS (TSX: LSPD), a Montréal-based point-of-sale solution for retailers, restaurants and e-commerce businesses, has closed its initial public offering on the Toronto Stock Exchange. Lightspeed sold 17.25 million subordinate voting shares at $16 per unit for gross proceeds of $276 million, including the offering's greenshoe option. Founded in 2005 by CEO Dax Dasilva, Lightspeed raised more than $400 million from venture capital firms, according to Refinitiv data. At the time of the IPO, its investors included Caisse de dépôt et placement du Québec, Inovia Capital and Investissement Québec.
2 min read · 15 March 2019
Wattpad, a Toronto-based multi-platform entertainment company for original stories, has secured undisclosed financing from Times Bridge, the investment arm of Indian media business The Times Group. The investment forms part of a strategic partnership intended to expand Wattpad's operations in India. Working with Times Bridge, Wattpad will grow its Indian community of readers and writers, establish new partnerships, and create opportunities to turn stories into books, TV shows, films and digital projects. Led by CEO Allen Lau, Wattpad has raised more than $150 million from a range of Canadian and global venture capital firms.
4 min read · 14 March 2019
Toronto-based pharmacy and healthcare services provider Centric Health Corp (TSX: CHH) has closed a convertible preferred shares financing, raising proceeds of $12 million. The investor was Ewing Morris & Co Investment Partners, a Canadian boutique investment firm. The transaction will give Ewing Morris a 12.2 percent interest in the company and the right to nominate a board director. Centric Health, established in 2001 and led by President and CEO David Murphy, said the proceeds will be used to repay senior debt.
5 min read · 14 March 2019
Innovative Chemical Products Group (ICP) has acquired Benefect, a Hamilton, Ontario-based producer of disinfectant and cleaning supplies for the environmental remediation industry. No financial terms were released. Founded in 1997 by CEO S. Samuel De Ath, Benefect developed its disinfectant products using botanical technology. ICP, an Andover, Massachusetts-based maker of coatings, adhesives and sealants, said the acquisition adds to its portfolio of brands for the building and construction industry. ICP was formed in 2015 with U.S.-based Audax Private Equity's merger of California Products Corp and Nicoat.
3 min read · 14 March 2019
Aeponyx, a Montréal-based fabless micro-optical switch semiconductor chips designer and maker, has raised $7.9 million in a Series A financing. The round was led by Pangaea Ventures, a Canadian advanced materials venture capital firm. It was joined by Fonds Innovexport and Ecofuel Fund, which backed the company's $4.3 million seed financing in 2017, and other investors. Aeponyx will use the funds raised to ramp up commercial production of its planar micro-optical switch chips, which are based on technology that combines silicon photonics with micro-electro-mechanical systems. Founded in 2011, Aeponyx is led by CEO Philippe Babin.
3 min read · 14 March 2019
Canadian mid-market private equity firm TorQuest Partners has acquired Prepac Manufacturing Ltd, a Delta, British Columbia-based designer and maker of affordable, ready-to-assemble home furniture. No financial terms were disclosed. Founded in 1979 by Steve Simpson, Prepac sells its products exclusively through major online furniture retailers in North America. The company will continue to be run by senior management led by President Jim Mathison, all of whom partnered in the deal. Simpson will retain a significant interest and sit on the board. Prepac is the eighth platform investment of TorQuest Partners Fund IV, which raised $925 million in 2016.
3 min read · 14 March 2019
Toronto-based enterprise software company CryptoNumerics has raised about $3.4 million (US$2.5 million) in a seed-stage financing. The round was led by 11.2 Capital, a U.S. venture capital firm. It was joined by fellow U.S. investors Lux Capital and Silicon Valley Data Capital. Shelley Zhuang, an 11.2 Capital managing partner, will join the board. Founded last year and led by CEO Monica Holboke, CryptoNumerics helps organizations to use data to gain insights while overcoming privacy and data residency issues. Along with the round, CryptoNumerics announced the launch of its CN-Protect software, which uses artificial intelligence to create privacy-protected data sets.
3 min read · 13 March 2019
The pace of deal activity in Canada's private equity (PE) market slowed in dollar terms in 2018, according to a report by the Canadian Venture Capital and Private Equity Association (CVCA). Disclosed PE deployments to some 543 deals totalled $22.3 billion last year, down 15 percent from $26.4 billion invested in 2017. Dollar values in 2018 were 62 percent higher, however, compared to 2016 values. PE investment activity showed signs of recovery in Q4 2018, when values reached nearly $6 billion in all, or triple the amount on a quarter-over-quarter basis. More than one-fifth of PE deals done in Canada in 2018 were located in industrial and manufacturing sectors, while IT sectors accounted for a 16 percent share.
5 min read · 13 March 2019
