Private Equity
Canada plans to have its infrastructure bank, a key initiative set up to facilitate private financing for infrastructure projects, open for business by the end of the year, Reuters reported, citing Finance Minister Bill Morneau, who delivered his federal budget this week. However, Morneau's budget contained few other new details on the new agency, which the Liberal government committed to set up last year to provide access to $35 billion to help fund major projects that might not otherwise get built. It plans to supplement public investment with funding from private investors, such as pension and sovereign wealth funds.
2 min read · 23 March 2017
Retailer Sears Canada Inc (TSX: SCC) has entered into a credit agreement with KKR Capital Markets LLC, an affiliate of Kohlberg Kravis Roberts & Co, and GACP Finance Co LLC for a five-year secured term loan of up to US$300 million. The loan, to be used for general corporate purposes, will be available in two tranches. The first tranche of US$125 million was drawn in full this week. One of Sears Canada's largest shareholders in ESL Investments, the U.S. hedge fund manager led by Edward Lampert.
2 min read · 23 March 2017
An affiliate of Canadian private equity firm Stern Partners has acquired the business and assets of Jean Machine, a Toronto-based denim and fashion retailer. No financial terms were released. With the deal, the company, which sells from some 30 stores, will continue to operate independently. Jean Machine reportedly filed for bankruptcy earlier this year. Ronald Stern, president of Stern Partners, said the investor "is confident in the underlying business" and believes that "with Jean Machine's liquidity issues behind it, the business is well-positioned for success." In January, Stern Partners acquired LGBTQ TV network OUTtv.
3 min read · 22 March 2017
Canadian miner Royal Nickel Corp is teaming up with private equity firm Waterton Global Resource Management to buy, develop and operate undervalued nickel assets, Reuters reported. The venture will have US$35 million to acquire nickel mines and projects, said the companies, and Waterton will pay US$22.5 million for a 50-percent stake in Royal Nickel's Dumont nickel project in Québec, which the partnership will own. The venture, which has earmarked US$5 million to advance development at Dumont, is currently eyeing four to 11 targets that are relatively low-cost and do not need major capital to develop.
2 min read · 22 March 2017
Fleet Complete has acquired BigRoad, a Waterloo provider of hours-of-service and regulatory compliance solutions. No financial terms were disclosed. Fleet Complete, a Toronto provider of fleet, asset and mobile workforce management software, said the deal will help it to capture the largest share of the truck driver market. Founded in 2000, Fleet Complete expanded into Europe in 2015 and Australia in 2016, and currently serves more than 8,000 companies worldwide. It is majority owned by U.S. private equity firm Madison Dearborn Partners. Madison acquired the business in September 2014.
4 min read · 22 March 2017
U.S. private investment firm Starwood Capital Group slightly raised its offer to buy Canada's Milestone Apartments Real Estate Investment Trust, weeks after proxy advisory firm ISS recommended unitholders to vote against the $1.7 billion deal, Reuters reported. Starwood raised its offer from US$16.15 per Milestone unit to US$16.25. Institutional unitholders, who make up 16 percent of Milestone's voting units, will vote in favour of the new offer, Milestone said. Milestone, which went public in Toronto in 2013, owns and manages apartment properties across the U.S. Southeast and Southwest.
1 min read · 22 March 2017
Canada Goose Holdings Inc (TSX, NYSE: GOOS), a portfolio company of Bain Capital, has closed its initial public offering in Canada and the United States. Canada Goose raised about $390 million in gross proceeds, which includes the full exercise of an over-allotment purchase option granted to underwriters. Announced earlier this year, the IPO included a secondary sale by Bain. With its close, the U.S. private equity firm remains the company's majority shareholder. Toronto-based Canada Goose is a designer and maker of luxury outdoor apparel. The public sale reportedly valued it at about $1.8 billion.
3 min read · 22 March 2017
Fengate Real Asset Investments has closed a new private equity fund, LPF Equities Fund, capitalized at $100 million. The fund will draw on the firm's background in infrastructure and real estate to target investments in mid-market operating businesses and platforms in a range of North American industries, Fengate said. The fund has already made its debut investment, backing Cricket Energy Group of Companies, a Concord, Ontario provider of residential and commercial energy services and solutions. No financial terms were disclosed. Earlier this week, Toronto-based Fengate appointed Justin Catalano to head its newly created private equity group.
3 min read · 22 March 2017
Source Energy Services Ltd, a provider of frac sand and logistical services to the oil and gas industry, has postponed its initial public offering on the Toronto Stock Exchange. Source, which recently priced the IPO to raise $300 million, said the delay was a result of "current adverse capital market conditions." Calgary-based Source has been backed by Canadian private equity firm TriWest Capital Partners since 2013. Earlier this month, Bloomberg reported STEP Energy Services Ltd, a Calgary oilfield service provider backed by ARC Financial Corp, had also postponed its IPO.
2 min read · 22 March 2017
A Wall Street hedge fund and a Canadian pension plan have settled a legal dispute over the value of investments, Reuters reported. In 2015, Public Sector Pension Investment Board (PSP Investments) sued Saba Capital Management LP and its founder, Boaz Weinstein, in New York state court, arguing that the hedge fund manager had marked down some assets after the pension asked for its US$500 million investment back earlier in the year. The move, PSP argued, essentially allowed Saba to keep more money than it should have.
2 min read · 21 March 2017
