Private Equity
Edmonton-based insurance services provider SCM Insurance Services has acquired Affirmative Risk Management (ARM), a Little Rock, Arkansas-based claims settlements company. Terms weren't disclosed. ARM is focused on third-party administration to the Lloyd’s of London marketplace with a specialization in trucking-cargo and liability claims. SCM, which entered the United States last year with its buy of Nixon & Co Inc, said the deal supports further expansion in that market. Founded in 1986, SCM has been backed since 2010 by Canadian private equity firm TorQuest Partners. Last August, TorQuest sold a portion of its stake, facilitating a majority investment by Warburg Pincus.
3 min read · 18 July 2018
WeWork Property Advisors LLC (WPA), a joint venture of Rhône Capital and WeWork Cos Inc, has acquired about 50 percent of the interest in a Rhône affiliate that holds the U.S. private equity firm's preferred investment in Canadian retailer Hudson’s Bay Co ((TSX: HBC). WPA paid about $326 million (US$248 million) for the interest. Rhône said the deal was contemplated last year when it agreed to invest about $632 million (US$500 million) in HBC. SoftBank-backed WeWork, a U.S. co-working space provider, at the same time agreed to buy HBC's Lord & Taylor building for US$850 million.
4 min read · 17 July 2018
Caesars Entertainment Corp (Nasdaq: CZR) has closed its buy of Centaur Holdings LLC, an Indianapolis, Indiana owner and operator of the Hoosier Park Racing and Casino and the Indiana Grand Racing and Casino. The deal, announced last year, reflected a purchase price of US$1.7 billion. It provided exits to Canadian private equity firm Clairvest Group and Canadian hedge fund manager West Face Capital, which jointly invested in 2010. Clairvest said Clairvest Equity Partners IV received sale proceeds of about US$415 million at closing and is entitled to US$22 million in deferred consideration. This represents a more than 14x multiple on the fund's investment (C$).
3 min read · 17 July 2018
Canadian specialty finance firm Crown Capital Partners said its special situations fund, Crown Capital Partner Funding (CCPF), has secured an additional $75 million in committed capital from institutional and other sources. The fund now oversees $300 million. CCPF initially closed in 2015 with a $300 million target. Crown said the fund's investment period has been extended to 2019, and its maximum size increased to $500 million. CCPF provides senior and subordinated loans to special situations financings originated and managed by Crown. It currently has about $207 million invested in 13 mid-market companies.
2 min read · 16 July 2018
Caisse de dépôt et placement du Québec has made a $250 million preferred investment in Avison Young, a Toronto-based provider of commercial real estate services. The proceeds will be used for Avison's growth plan, backing investments in acquisitions and the recruitment of professionals that support the expansion of the company's global footprint and service-line capabilities. They will also be used to rebuy shares held by Parallel49 Equity. Parallel49 was formed in 2015 when Tricor Pacific Capital rebranded its fifth fund. Tricor made the initial investment in Avison in 2011. Avison reports growing an initial base of 11 offices in Canada to 84 offices across North America and Europe in just under 10 years.
5 min read · 16 July 2018
Canadian private-markets investor Northleaf Capital Partners has promoted three professionals in its private equity and private credit teams. Brad Blowes was promoted to vice president, private equity. Blowes, who joined Northleaf in 2014 from CommonWealth Fund Services, will help launch the firm's New York office. Serge Koniski was also promoted to director, private equity, operating from the London office. Koniski joined Northleaf in 2012 from Bank of America Merrill Lynch. Additionally, Spencer Ross, who joined Northleaf two years ago from Catalyst Capital Group, was promoted to vice president, private credit. He will be based in the firm's Toronto headquarters.
2 min read · 16 July 2018
Fengate Real Asset Investments has appointed Omar Khalifa as a director, serving with the firm's private equity team. He will be responsible for originating, evaluating and executing private equity deal opportunities in Canada and internationally. Khalifa joins Fengate from the private markets group of OPTrust, where he worked for 10 years, most recently as a director. He served in the Canadian pension fund manager's London and Toronto offices. Toronto-based Fengate launched its private equity business in 2017.
1 min read · 16 July 2018
Vertex Resource Group Ltd (TSX-V: VTX) has acquired Three Star Trucking Ltd, an Alida, Saskatchewan-based oilfield trucking business. The acquisition reflected a purchase price of $8.9 million, consisting of cash, share issues and promissory notes. Vertex, a Sherwood Park, Alberta-based environmental and industrial services provider, said the deal adds 270 pieces of equipment to the company's fleet and strengthens its service lines in Saskatchewan and the United States. Vertex in 2017 closed an $85.8 million qualifying transaction to go public with the backing of Canadian energy private equity firm 32 Degrees Capital.
3 min read · 16 July 2018
U.S. private equity firm Southfield Capital has acquired shopper marketing solutions provider Match Marketing Group Inc, according to a report by Adweek. Terms weren't disclosed. The seller is Canadian private equity firm Beringer Capital, which has backed the Norwalk, Connecticut- and Toronto-based Match since 2011. The company will continue to be led by President and CEO Michael Dill, Adweek said. Adweek, a New York-based news source for marketing, media and advertising professionals, is a portfolio company of Beringer. The investor acquired it in 2016 from Mediabistro Holdings LLC.
1 min read · 16 July 2018
Toronto-based RL Solutions has agreed to combine with London, U.K.-based Datix Ltd to create a single provider of healthcare quality and patient safety software. No financial terms were released for the deal, which is expected to close in the next few weeks. The combined company will be led by Datix CEO Seyed Mortazavi and have more than 3,000 clients in 19 countries. RL Solutions was founded in 1997 by CEO Sanjay Malaviya. Malaviya will become executive chairman of the new entity's board. Earlier this year, Datix secured an investment from TA Associates. The U.S. private equity firm now holds a stake alongside Five Arrows Principal Investments.
4 min read · 16 July 2018
