Canada

Clairvest's Discovery Air to sell fire services business to MAG

Canadian specialty aviation services provider Discovery Air Inc (TSX: DA.A) has agreed to sell its fire services business to MAG Aerospace Corp. The deal, which has a total consideration of about $15.38 million, is expected to close by November. Toronto-based Discovery said the sale will allow it to focus on the strategic growth of its core businesses and reduce debt. Discovery is majority-owned by Canadian private equity firm Clairvest Group. MAG, a Woodbridge, Virginia-based provider of outsourced specialty aviation and intelligence, surveillance and reconnaissance services, is also backed by Clairvest.

World's wealthy saved by private equity in tough 2015: Reuters

The world's wealthiest families saw investment returns judder to a near halt in 2015, lagging expectations for a third straight year despite gains in private equity and real estate, Reuters reported, citing a new report. The average "family office" portfolio returned just 0.3 percent in 2015, the UBS/Campden Wealth Global Family Office Report 2016 showed, down sharply from 6.1 percent in 2014 and 8.5 percent in 2013. "Private equity and real estate once again outperformed most other asset classes, and will have saved many family office executives the indignity of delivering overall portfolio losses to the beneficial owners in the last year," the report said.

Brazil's Petrobras confirms pipeline sale to Brookfield-led group

Brazilian oil company Petróleo Brasileiro SA (Petrobras) has agreed to sell its natural gas pipeline unit, Nova Transportadora do Sudeste (NTS), to a consortium led by Brookfield Asset Management. The deal, reported earlier this week by Reuters, is said to be valued at US$5.2 billion. Petrobras said it will disclose the final terms and conditions after the disinvestment process has been completed and the transaction is approved by statutory authorities. Reuters reported Toronto-based Brookfield is partnering in the acquisition with a Canadian pension fund and Asian sovereign wealth funds CIC and GIC.

Hellman & Friedman's Hub buys Sarjeant Insurance Brokers

Hub International Ltd, a portfolio company of U.S. private equity firm Hellman & Friedman, has acquired the shares of Sarjeant Insurance Brokers Ltd, a Barrie, Ontario-based provider of property and casualty insurance solutions. No financial terms were released. The acquisition follows Hub's buy of Canada's New Dimensions Underwriters Ltd earlier this week. Hub, a Chicago-based insurance brokerage, was acquired by Hellman & Friedman for about US$4.4 billion in late 2013.

Berkshire-backed Aritzia seeks to raise $285 mln from IPO

Canadian women's apparel retailer Aritzia Inc is looking to raise about $285 million from its initial public offering, according to a SEDAR filing. Aritzia, a portfolio company of U.S. private equity firm Berkshire Partners, filed to go public in August. Earlier this month, it amended its prospectus to specify plans to sell 20 million subordinate voting shares for $14 to $16 apiece. Assuming the exercise of the IPO's over-allotment option, total proceeds may exceed $327 million. The Vancouver-based company indicated that all of the proceeds will go to selling shareholders, including Berkshire.

Fengate Capital promotes Pranav Pandya to CFO role

Fengate Capital Management, a Canadian investment firm focused on infrastructure, real estate and private equity opportunities, has promoted Pranav Pandya to chief financial officer. Pandya, who joined Fengate in 2007, was previously its senior vice president, finance. Toronto-based Fengate has been an active investor in 2016. Deals include the firm's partnership in the acquisition of Booth Centennial Healthcare Linen Services in March and its purchase of an ownership stake in an Australian cogeneration plant in April.

Swander Pace Capital closes sixth mid-market fund at $510 mln

U.S. private equity firm Swander Pace Capital, which has its Canadian office in Toronto, has closed its sixth fund, SPC Partners VI LP, at US$510 million. Fund VI, which will sustain the firm's long-standing investment focus on mid-market consumer products companies in North America and the United Kingdom, exceeded its initial target of US$400 million. Swander Pace is an active investor in Canada, counting a number of domestic businesses in its portfolio. They include Voortman Cookies Ltd, a manufacturer of cookies and wafers acquired by the firm last year. Swander Pace's Toronto office, opened in 2009, is led by Principal Valerie Scott.

Pershing Square's Bill Ackman resigns from CP's board

Bill Ackman, head of U.S. hedge fund manager Pershing Square Capital Management, has resigned from the board of directors of Canadian Pacific Railway Ltd (TSX, NYSE: CP). Ackman served on the board since 2012. CP said Ackman played an "instrumental" role in transforming it "from railroading's biggest laggard to one of the industry's very best." Reuters reported last month that Pershing Square had exited its investment in CP, freeing up some US$1.5 billion in cash to make other future investments.

Caisse de dépôt invests $25 mln in global growth of LASIK MD

The Caisse de dépôt et placement du Québec has invested $25 million in LASIK MD, a Canadian provider of laser vision correction services. The Caisse said the investment forms part of a broader financing intended to support LASIK MD's global expansion. The company, which is headquartered in Montréal, currently operates 36 clinics in Canada and one in the United States. The Caisse also said the deal helps finance the acquisition of a minority interest in Vision Group Holdings LLC (VGH), which owns and operates LASIK surgery centres across North America. West Palm Beach, Florida-based VGH is backed by Audax Private Equity, Charlesbank and other investors.

Origami Capital Partners to take control of Trident Exploration

Canadian natural gas production company Trident Exploration Corp has announced a change in ownership as a result of its recent recapitalization. With the deal's close, expected this week, U.S. private equity firm Origami Capital Partners will assume a majority of the company's issued and outstanding common shares. Origami will be represented on Trident's new board by Jeff Young, Darren O’Brien and Julie Klaff. Daryl Gilbert, a managing director of Canadian energy private equity firm JOG Capital, will also join the board. Calgary-based Trident struck an agreement with its primary debt-holders in July to effect a recapitalization and financing.