Private Equity
Penfund wrapped up its sixth mid-market fund, raising $1.15 billion, thanks to a private-debt strategy that resonated with investors. Penfund Capital Fund VI, launched in early 2018, closed in December above its $900 million target, Chairman and Partner John Bradlow and Partner Richard Bradlow told PE Hub Canada. The fund, backed by 40 new and existing limited partners in North America, Europe and Asia, is the largest in the Toronto junior-capital provider’s 40-year history, exceeding by 59 percent the $724 million its predecessor raised in 2016. The close brings assets managed by Penfund to $1.8 billion.
3 min read · 09 January 2019
Onex Corp has promoted Jonathan Mueller to managing director. Mueller is responsible for the Canadian private equity firm's activity in Europe's automation, aerospace and transportation industries and supports origination efforts in the German-speaking region. He has worked on several Onex investments, including KraussMaffei Group, which was sold in 2016 to China National Chemical Corp for about US$1 billion. Before joining Onex in 2011, Mueller was an associate at Boston Consulting Group.
2 min read · 09 January 2019
The Ontario Municipal Employees Retirement System (OMERS) has acquired the residual rights to receive royalty payments on sales of Kadcyla, a HER2-positive breast cancer therapy, for US$65 million. The seller was ImmunoGen Inc (Nasdaq: IMGN), a Waltham, Massachusetts-based developer of antibody-drug conjugates for the treatment of cancer. ImmunoGen played a role in the generation and early development of Kadcyla. As a result of the deal, OMERS now owns 100 percent of the company’s rights to receive Kadcyla royalties.
3 min read · 08 January 2019
BP Energy Partners (BPEP) has acquired a controlling interest in Cryopeak LNG Solutions Corp, a Richmond, British Columbia-based distributor of liquified natural gas (LNG). No financial terms were disclosed. Founded in 2012 by CEO Calum McClure, a former Teekay Corp executive, Cryopeak provides fuel for power generation, heat and pipeline supply to industrial customers and utilities in Canada and the United States. Along with acquiring the company, BPEP, a U.S. energy private equity firm, said it will commit additional capital to Cryopeak to support its continued growth in North America.
3 min read · 08 January 2019
Chicago-based insurance brokerage Hub International Ltd has acquired TRG Group Benefits and Pensions Inc, a Vancouver-based employee benefits advisory business. Terms weren't disclosed. Rob Taylor, managing director of TRG, will join Hub as executive vice president, employee benefits. Hub said the deal brings its acquisitions of Canadian employee benefits and pension brokerages to 13 since 2018. The company currently has 170 local offices. Last year, Canadian long-term private equity firm Altas Partners acquired a significant minority stake in Hub, joining existing owner Hellman & Friedman.
4 min read · 08 January 2019
Alignvest Student Housing Real Estate Investment Trust (ASH REIT) has agreed to acquire The Annex, an off-campus purpose-built student accommodation (PBSA) property in Ottawa. No financial terms were disclosed. The nine-storey, 503-bed Annex, which opened last year as part of the University of Ottawa's residence portfolio, will be ASH REIT's third acquisition and its second in Ottawa. It will increase the fund's asset base to more than $200 million. ASH REIT, which raised $65 million in mid-2018, is managed by Alignvest Student Housing, an affiliate of Canadian alternative investment manager Alignvest Management Corp.
3 min read · 08 January 2019
M/C Partners has acquired Toronto-based Carbon60 Networks Inc and Vancouver-based Gossamer Threads Inc, both managed cloud services providers. Terms weren't disclosed for the deal, which will see the companies combined under the name Carbon60 Networks. John Witte, Carbon60's current CEO, will lead the new Canadian business. Alex Krohn, founder and CEO of Gossamer Threads, will assume the role of CTO. M/C's investment will provide liquidity for selling shareholders. Carbon60 has been backed since 2014 by Canadian mid-market private equity firm Roynat Equity Partners. M/C, a U.S. communications and IT services private equity firm, will also provide capital to support the new Carbon60's organic growth and strategic acquisitions.
4 min read · 08 January 2019
Fertin Pharma A/S has acquired Tab Labs Inc, a Langley, British Columbia-based contract manufacturer of sugar-free tablets and chewing gum. No financial terms were disclosed. Fertin, a Vejle, Denmark-based maker of medicated chewing gum and other nutraceutical products, said the acquisition will help give it a foothold in North America's dietary supplements market. It will also create opportunities in Canada for the company's edible cannabinoid products. Swedish private equity firm EQT acquired a majority stake in Fertin last year.
2 min read · 07 January 2019
Calgary-based oil and gas companies Blackbird Energy Inc (TSX-V: BBI) and Pipestone Oil Corp have completed their merger, creating Pipestone Energy Corp. The deal, announced in October, included $310 million in equity and debt financings. Pipestone Oil was an affiliate of Canadian Non-Operated Resources LP (CNOR), which is backed by U.S. energy private equity firm Riverstone Holdings and other investors. CNOR will own about 54.7 percent of Pipestone Energy shares, with former Blackbird shareholders holding the rest. Pipestone Energy, led by President and CEO Paul Wanklyn, is expected to begin trading this week on the TSX Venture Exchange under the symbol PIPE.
8 min read · 07 January 2019
Sagard Holdings, an affiliate of Canada’s Power Corp, has launched Sagard Healthcare Royalty Partners (SHRP), a life sciences royalty investment platform. Focused on investing in pharmaceutical intellectual property, Toronto-based SHRP will be led by Partner David MacNaughtan, formerly a senior principal in the credit investments group of Canadian Pension Plan Investment Board (CPPIB). Before joining CPPIB in 2010, MacNaughtan was co-head of the Royalty Monetization Fund of DRI Capital, a Canadian healthcare private equity firm. SHRP plans to raise a fund in the “several-hundred-million” range, MacNaughtan told the Globe and Mail.
3 min read · 07 January 2019
