Toronto-based TorQuest Partners has collected C$530 million (€388 million; $504 million) for its Fund III, according to a source with knowledge of the situation.
The firm is targeting C$550 for the fund, which has a C$650 million hard-cap. Fund III will invest using the same strategy as TorQuest’s previous funds, targeting investments of between C$20 million and C$80 million primarily in Canadian mid-market companies with enterprise values between $40 million and $250 million.
TorQuest declined to comment on fundraising. The firm held a first close for the fund on C$372 million last July.
Greenhill and Company is acting as placement agent for Fund III, which has received commitments from limited partners including the Bank of Nova Scotia, the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan, according to Private Equity International’s Research & Analytics division. TorQuest’s other LPs include both US-based and foreign institutional investors.
TorQuest closed its second fund on C$550 million in 2006. Fund II has investments in eight companies, including specialty chemicals company Pinova Holdings, fuel management services business 4Refuel and insurance business SCM. The firm has enough uninvested capital in Fund II to continue making add-on acquisitions for its platform investments.
TorQuest’s Fund I collected C$183 million in 2002 and generated a 62 percent internal rate of return and 2.9x return multiple, according to the firm’s website.
TorQuest has completed 13 platform investments and 46 total acquisitions since its founding in 2002 and manages more than C$1 billion of equity capital.