Peloton Capital Management, a Canadian private equity (PE) firm with a long-term approach to middle-market buyouts in the North American market, launched today.
Founding Managing Partners Steve Faraone and Mike Murray, most recently as Managing Directors at Ontario Teachers’ Pension Plan (OTPP), are launching Peloton in partnership with Stephen Smith, Chairman, CEO, and co-founder of First National Financial Corporation, and benefactor of the Smith School of Business at Queen’s University.
Peloton aims to differentiate itself through its long-term capital and orientation (8 to 12-year investment horizon), deep sector expertise and focus on financial services, health care and consumer markets, and relationships-first philosophy.
Smith, who has taken on the role of Chairman of Peloton, has made an anchor commitment of at least $150 million in the firm’s first middle-market buyout fund. Bank of Montreal, CIBC, Royal Bank of Canada, and TD Bank Group also intend to make commitments to the fund.
Jim Leech, Chancellor of Queen’s University and former CEO of Ontario Teachers’, is taking on the role of Chair of Peloton’s Advisory Board.
photo credit: Peloton Capital
News Release
Private Equity Firm Peloton Capital Management Launches with a Blue-Chip Team, Sector Focus, and Long-Term Investment Approach
TORONTO – November 1, 2018 – Peloton Capital Management, a Canadian private equity (PE) firm with a long-term approach to middle-market buyouts in the North American market, launched today. Unlike many middle-market PE firms that take a short-term (3 to 5 years), generalist approach to investing, Peloton aims to differentiate itself through its long-term capital and orientation (8 to 12-year investment horizon); deep sector expertise and focus on financial services, health care, and consumer markets; and relationships-first philosophy.
Founding Managing Partners Steve Faraone and Mike Murray have extensive PE experience, including their most recent roles as Managing Directors at Ontario Teachers’ Pension Plan (OTPP), one of Canada’s largest pension funds. Faraone and Murray worked together for more than a decade at OTPP where they played key roles in the development of the firm’s direct private equity program, were members of the firm’s investment committee, and held responsibility for three of the firm’s six target industry verticals.
Faraone and Murray are launching Peloton in partnership with Stephen Smith, Chairman, CEO, and co-founder of Canada’s largest non-bank mortgage originator, First National Financial Corporation, and benefactor of the Smith School of Business at Queen’s University. Together, the partners aim to build a leading Canadian alternative asset manager.
Commitments to the Peloton Middle-market Buyout Fund
Smith, who has taken on the role of Chairman of Peloton, has made an anchor commitment of at least C$150MM in the firm’s first middle-market buyout fund. Bank of Montreal, CIBC, Royal Bank of Canada, and TD Bank Group also intend to make commitments to the fund.
“Our vision is to establish Peloton as a leading Canadian private equity firm,” says Smith. “I’ve worked closely with Steve and Mike for almost a decade and am confident in their investment abilities and the potential for generating long-term, sustainable returns.”
Peloton aims to build a concentrated portfolio of 7 – 10 platform investments from its first fund. The fund will focus on well-established, profitable companies that have $10MM to $40MM of EBITDA and present compelling opportunities to build long-term, sustainable value. Individual investments held by the fund will range from $25MM to $75MM.
Faraone and Murray are aligned in the opportunity they see for Peloton, and the approach they will use to drive the firm’s long-term success. “At Peloton’s core is a culture based on the belief that effective collaboration produces better outcomes,” says Faraone. “We will embrace the same relationships-first philosophy that has been the cornerstone of our success throughout each of our careers.”
“We believe there is a need in the North American PE middle-market for a long-term, sector-focused alternative,” says Murray. “While the fundraising market is competitive and there is a lot of capital chasing deals, the opportunity is significant as we are addressing a white space with our unique approach.”
Advisory Board to be Chaired by Jim Leech
Recognizing the important role that Peloton will play in expanding the Canadian PE community, Jim Leech, Chancellor of Queen’s University and former CEO of Ontario Teachers’ Pension Plan, is taking on the role of Chair of Peloton’s Advisory Board.
About Peloton Capital Management
Peloton Capital Management is a private equity (PE) firm that uses a long-term investment philosophy and sector-focused strategy in building a portfolio of North American companies that present compelling opportunities for value creation. Headquartered in Toronto, the company is led by a blue-chip team of partners with extensive private equity experience. For more information please visit: pelotoncapitalmanagement.com.
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