Clairvest closes Fund IV on $467m

The Canadian mid-market firm is the single largest investor in the fund, which came in over its $400m target.

Toronto-based Clairvest Group has closed its fourth fund on $467 million, surpassing its $400 million target.

The firm has also increased its commitment to Clairvest Equity Partners IV from $100 million to $125 million, alongside the $342 million from limited partners. The commitment makes Clairvest the single largest investor in the fund. Clairvest was also the single largest investor in its third fund – which closed on $300 million in 2006 after receiving a $75 million commitment from the firm – and its second fund, which collected $219 million in 2001.

“We are delighted to have a renewed commitment by many of our existing fund investors as well as to welcome several new investors to CEP IV,” Clairvest co-chief executive officer Ken Rotman said in a statement. “[O]ur decision to increase the fund size of CEP IV is tied to our optimism about the opportunities we see.”

Private equity-sponsored mergers & acquisition activity is on the rise in Canada, following a flurry of deals that closed in late 2010. Still, the $3.4 billion of deals that closed last year came in far below the high of $39 billion set in 2007, according to analysis from KPMG’s Corporate Finance group.

NovaFund Advisors acted as placement agent to market the fund outside of Canada.

Founded in 1987, Clairvest invests in mid-market companies in a variety of sectors, primarily in North America. The firm has over $800 million of equity capital under management.