Canada

Caisse de dépôt to invest in BNP Paribas-backed Innocap

Caisse de dépôt et placement du Québec has agreed to invest in Innocap Investment Management Inc, a Montréal-based provider of managed account solutions. No financial terms were released for the equity and debt deal, which is expected to close in the first quarter of 2018. It will see the Caisse and company management join BNP Paribas Capital Partners, the private equity arm of France's BNP Paribas SA, as shareholders, replacing National Bank of Canada, which sold its stake. BNP Paribas acquired a 25 percent interest in Innocap in 2007, when the business was a National Bank affiliate. Founded in 1996, Innocap manages US$5.7 billion in assets.

Fiera Comox taps former Caisse exec Patrick Lynch as PE partner

Fiera Comox, a private equity and agriculture investment affiliate of Fiera Capital Corp, has hired Patrick Lynch as a partner, private equity. Prior to joining the firm, Lynch was head of funds and partnerships at Caisse de dépôt et placement du Québec. Before then, he served in a similar role at Mubadala Development Co, an Abu Dhabi sovereign wealth fund. Lynch will now be responsible for all aspects of Fiera Comox's private equity strategy, which will be launched in 2018. Montréal-based Fiera Comox was formed last year by the principals of Comox Equity Partners and Fiera Capital, a Canadian asset manager.

Oaktree’s Neo raises $200 mln from IPO, begins TSX trading

Neo Performance Materials Inc, an advanced materials supplier, has closed its initial public offering in Canada. The company raised gross proceeds of more than $200 million, all of which will go to its majority owner, U.S. distressed investor Oaktree Capital Management. The amount raised may increase to $230 million if the offering's greenshoe option is fully exercised. Toronto-based Neo Performance, which emerged from bankruptcy last year, will commence trading today on the Toronto Stock Exchange under the symbol "NEO". The company originally priced its IPO to raise as much as $345 million.

CPPIB buys stake in Hong Kong logistics vehicle for $320 mln

Canada Pension Plan Investment Board (CPPIB) has acquired an interest in Goodman Hong Kong Logistics Partnership (GHKLP), owner of a portfolio of modern warehouse properties in Hong Kong. CPPIB paid about $320 million for the stake in GHKLP, which as of September 2017 had investments valued at about $4.7 billion in 13 assets, including a 50 percent interest in Goodman Interlink, which is co-owned with CPPIB. CPPIB said the deal gives it more exposure to the "fast growing logistics sector."

Northleaf Capital wraps up private credit fund at $670 mln

Northleaf Capital Partners has closed its private credit fund at more than US$670 million in committed capital. Northleaf Private Credit I, which was backed by new and existing institutional investors, is focused on investing in senior, unitranche, second lien, mezzanine and subordinated loans in North America and Europe, primarily in support of private equity-backed companies. More than 30 percent of the fund has already been invested in ten loans. Toronto-based Northleaf said the fund's close brings total commitments managed across the firm's private equity, infrastructure and private credit platform to more than US$10 billion.

KKR, Caisse-backed Sedgwick to buy Cunningham Lindsey

Sedgwick Claims Management Services Inc has agreed to acquire Cunningham Lindsey, a Tampa, Florida-based loss adjusting and claims management company. No financial terms were released. Memphis, Tennessee-based Sedgwick said the deal will enhance its market position as a risk and benefit solutions provider and broaden its global footprint. Sedgwick is majority owned by U.S. private equity firm KKR. Last year, Caisse de dépôt et placement du Québec invested US$500 million in the company, joining KKR and minority investor Stone Point Capital. Cunningham is being sold by CVC Capital Partners.

Blackstone acquires secure data classification provider Titus

U.S. private equity firm Blackstone Group has acquired a majority interest in Titus Inc, a Canadian provider of secure data classification and categorization solutions. No financial terms were disclosed; however, the Globe and Mail reported that Blackstone paid $100 million for the stake. Founded in 2005 by Tim Upton, Stephane Charbonneau and Charlie Pulfer, Ottawa-headquartered Titus provides its software solutions to over 950 enterprise customers, and millions of users, in more than 70 countries. Upton, the company's CEO, said the partnership with Blackstone will allow Titus to expand its geographic reach and accelerate its innovation strategy.

Carlton wins investment from HIG Growth, plans rebranding

Carlton Group has received an undisclosed investment from HIG Growth Partners, an affiliate of U.S. private equity firm HIG Capital. Based in Toronto, Carlton delivers software-as-a-service (SaaS) solutions to the global employee recognition, performance, loyalty and reward management industries. It plans to rebrand under the name Carlton One Engagement as it prepares to launch several new initiatives, Carlton Founder and CEO Rob Purdy said. The partnership with HIG Growth will support the new strategy and help accelerate the company's growth plans, which will include strategic acquisitions.

Ardian gets bids for French engineering group Fives: Reuters

Buyout group Ardian has received binding bids for its stake in Fives, which may value the French engineering group at about US$1.8 billion, Reuters reported. Canadian pension fund Caisse de dépôt et placement du Québec and private equity firm TowerBrook have both handed in offers for the minority stake, the sources said. The winner of the auction, which is being organised by BNP Paribas, is expected to tie up with Bpifrance or the Peugeot family’s investment arm FFP, both of which have offered to act as co-investors. Fives designs and supplies machines and ready-to-work factories for the metals, automotive, aerospace, logistics and energy industries.

Rhône's Steven Langman joins HBC board with deal close

U.S. private equity firm Rhône Capital has closed its $632 million (US$500 million) equity investment in Canadian retailer Hudson’s Bay Co (TSX: HBC). As a result, Rhône Managing Director M. Steven Langman joined the company's board. The deal, which is linked with HBC's US$850 million sale of the Lord & Taylor Fifth Avenue building, will allow the company to repay outstanding borrowings and strengthen its balance sheet. HBC recently addressed opposition to the Rhône investment from shareholder Land & Buildings, a U.S. activist hedge fund. Langman has served with Rhône since 1996.