Novacap initial closes Novacap Financial Services I fund at $260M

Novacap Fund Management Inc. has held an initial close for a new sector fund, Novacap Financial Services I, with commitments of CDN $260 million, a strong start toward its target of CDN $500 million.

Novacap did not disclose the names of limited partners investors. It expects to hold the second close in Q2 2020.

The fund will be managed by Marcel Larochelle, as Managing Partner, as well as Rajiv Bahl and Alain Miquelon as Senior Partners.

Novacap Financial Services I aims to invest in mid-market companies established in North America, with a focus on Canada, with strong growth potential. Four segments are of particular interest: specialty insurance and distribution; asset and wealth management; alternative lending; and financial infrastructure.

The Fund will make equity investments in order to support companies with their organic growth initiatives and to drive strategic acquisitions.

photo credit: Novacap

News Release

NOVACAP officially launches its new financial services fund

Novacap is the first private equity firm in Canada to launch a fund dedicated to financial services.

MONTREAL, Dec. 3, 2019 /CNW Telbec/ – Novacap, one of Canada’s leading private equity firms, announced the introduction of a new sector fund and its first closing. Novacap Financial Services I (the “Fund”) gathered initial commitments of C$260 million, a strong start toward its target of C$500 million. A second group of institutional investors is expected to close in Q1 2020.

Driven by strong demand from new and existing investors, the Fund will be managed by three seasoned executives: Marcel Larochelle, as Managing Partner, as well as Rajiv Bahl and Alain Miquelon as Senior Partners. With a dedicated investment team, they will fully leverage Novacap’s infrastructure and apply Novacap’s proven investment methodology.

Novacap Financial Services I aims to invest in mid-market companies established in North America, with a focus on Canada, with strong growth potential. Four segments are of particular interest: 1-specialty insurance and distribution, 2-asset and wealth management, 3-alternative lending and 4-financial infrastructure. The Fund will make equity investments in order to support companies with their organic growth initiatives and to drive strategic acquisitions.

The Fund is backed by commitments from corporate and public pension funds, financial institutions, family offices and high net-worth individuals. “We are extremely pleased with the strong support received from our investors for this first close.” said Mr. Marcel Larochelle, Managing Partner of Novacap Financial Services, “This is very timely, as we are currently pursuing some very attractive investment opportunities for the Fund.”

“It is a historical event as we are the first private equity firm in Canada to launch a fund dedicated to financial services businesses” said Mr. Pascal Tremblay, President and CEO of Novacap, “The Financial Services fund addresses a significant need in the Canadian market that we have observed over the past few years. I am very proud of the team that we have assembled, who made this possible.”

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.