Novacap Industries V closes at $940M hard cap

Novacap Management Inc. has closed its latest private equity fund, Novacap Industries V, at its hard cap with total commitments of CDN $940 million.

The fund launched formal marketing in late 2018, with an initial target of CDN $650 million and the goal of globally expanding its limited partner (LP) base. The fund surpassed its target size by nearly 45%, driven by strong demand from new and existing investors.

Novacap did not disclose its LPs. Export Development Canada (EDC) is one of the largest LPs, committing between $50-100 million to the fund.

Novacap Industries V aims to invest in companies with strong growth potential in the industrial and manufacturing sectors as well as in service and distribution. Novacap Industries V will maintain its current strategy of investing in North American mid-market manufacturing companies, food processors, business-service providers and distributors with the ability to become North American leaders in their respective fields.

Novacap Industries V will be led by partners, Jacques Foisy, Michel Côté, Domenic Mancini, Frédérick Perrault, Marc Paiement, Michel Toutant and Jean-Francois Routhier.

The Credit Suisse Private Fund Group acted as the exclusive fund placement agent and Davies Ward Phillips & Vineberg acted as fund counsel.

photo credit: Novacap

News Release

Novacap Closes Industries Fund at C$940 Million

MONTREAL, Nov. 21, 2019 /CNW Telbec/ – Novacap, one of Canada’s leading private equity firms, announced it closed its latest private equity fund, Novacap Industries V (the “Fund”), at its hard cap with total commitments of C$940 million. The Fund surpassed its target size by nearly 45%, driven by strong demand from new and existing investors.

Novacap Industries V aims to invest in companies with strong growth potential in the industrial and manufacturing sectors as well as in service and distribution. The Fund will maintain its current strategy of investing in North American mid-market manufacturing companies, food processors, business-service providers and distributors with the ability to become North American leaders in their respective fields. The Fund expects to make equity investments in order to support companies with organic growth initiatives and to drive strategic acquisitions.

The Fund launched formal marketing in late 2018, with an initial target of C$650 million and the goal of globally expanding its limited partner base. The outcome exceeded expectations thanks to commitments from pension funds, financial institutions, insurance companies, family offices and high net-worth individuals across North America, Europe and Asia. “We are proud to have been able to close the 5th generation Novacap Industries fund with a truly global limited partner base,” said Mr. Jacques Foisy, Chairman of the Board and Managing Partner of Novacap Industries, “The success of the fundraise will allow us to continue to grow and develop businesses in Canada and beyond.”

Novacap Industries V will be led by its partners, Jacques Foisy, Michel Côté, Domenic Mancini, Frédérick Perrault, Marc Paiement, Michel Toutant and Jean-Francois Routhier.

The Credit Suisse Private Fund Group acted as the exclusive placement agent and Davies Ward Phillips & Vineberg acted as fund counsel for Novacap Industries V.

About NOVACAP

Founded in 1981, Novacap is a leading Canadian private equity firm with $3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well-positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 38 years, Novacap has invested in more than 90 companies and completed more than 130 add-on acquisitions. The company has offices in Toronto, Ontario and Brossard, Quebec. For more information, please visit www.novacap.ca.

SOURCE Novacap Management Inc.

For further information:
Alexandra Troubetzkoy, Communications and Marketing Director, NOVACAP, T: 450 651-5000 ext.291, atroubetzkoy@novacap.ca

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.