Clairvest launches Clairvest Equity Partners VII fund with US $1B initial close

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By Ted Liu

Clairvest Group Inc. (TSX: CVG) has held an initial closing for Clairvest Equity Partners VII (CEP VII) with US $1 billion in committed capital.

Clairvest committed US $300 million to CEP VII co-investment vehicle alongside approximately US $700 million from third-party investors. CEP VII has a hard cap of US $1.2 billion.

In April 2019, Clairvest held a first and final closing for Clairvest Equity Partners VI at US $850 million, the fund’s hard cap. Clairvest committed US $230 million to alongside US $620 million from third party investors.

CEP VI was predominately backed by institutional investors from US and Europe. VI’s Canadian LPs, including Northleaf Capital Partners, Canadian Medical Protective Association, RBC, and private investors, collectively committed 30% of the total third party commitment amount.

Clairvest Equity Partners VII will be led by Kenneth Rotman and Daniel Cheng with support of Jeffrey Parr, Michael Wagman and James Miller.

photo credit: Clairvest

News Release

Clairvest Completes First Close of Clairvest Equity Partners VII at Target Fund Size of US$1 Billion

Toronto, Ontario (June 30, 2023) – Clairvest Group Inc. (TSX: CVG, “Clairvest”) today announced it has held a first closing for Clairvest Equity Partners VII (“CEP VII”).

Marketing of CEP VII commenced late April 2023 with a target fund size of US$1.0 billion with a hard cap of US$1.2 billion. Clairvest completed the first closing of CEP VII on June 30 at approximately US$1.0 billion. At the first closing, Clairvest’s commitment to CEP VII is US$300 million alongside ~US$700 million from third-party investors. Consistent with the previous funds, Clairvest will be the single largest investor in CEP VII.

“I am grateful for the unwavering support from our existing investors and am pleased to see the strong investor demand in this volatile market environment. We have remained disciplined in growing our fund size within our capabilities and will continue executing our core investment philosophy of backing owner-operators in our active industry domains,” said Ken Rotman, CEO and Managing Director of Clairvest. “Our achievements over the last three decades are credited to our exceptional team at Clairvest, whom we have continued to build from the bottom up through our apprenticeship model.”

Goodmans LLP acted as fund counsel and Metric Point Capital assisted Clairvest as the placement agent.

CEP VII will be a successor fund to Clairvest Equity Partners VI, a US$850 million investment fund pool which is currently completing its investment program.

Over the last 30 years, Clairvest’s private equity investing generated a gross multiple of capital of 4.2 times, resulting in a 25% pooled gross IRR on its 41 realized and substantially realized investments.