CPE News (10/4/2021) – SeaFort Capital Inc. has launched SeaFort Capital Fund II, with $110 million of initial committed capital. First closing exceeded target and SeaFort Fund II is on pace to achieve its final target of $160 million.
SeaFort Fund II marks the first time that eligible investors are able to join SeaFort’s founding investors, which include members of the Sobey and McCain families.
In addition to a $40 million lead commitment from SeaFort’s founding investors, SeaFort Fund II has secured commitments from Export Development Canada (EDC), the Canadian Imperial Bank of Commerce (CIBC), BMO Capital Partners, and several other prominent investors, including successful entrepreneurs and families from across Canada. Jessiman Family Investments Inc. (JFI) is a significant limited partner investor in SeaFort Fund II. JFI will be represented on the SeaFort Fund II limited partner advisory committee by Peter Jessiman, who will serve as Chairman.
SeaFort Fund II is a growth-focused buyout fund that intends to make majority investments in Canadian lower-mid-market businesses operating in core industrial and business services sectors. The new fund is designed to allow SeaFort to hold investments for a longer period than most established private equity firms, which means that SeaFort can maintain its established patient approach.
Founded in 2012 by the Sobey and McCain families and a small group of private investors, SeaFort has grown significantly, demonstrating a gross internal rate of return (IRR) on its investments of 28% and a multiple of invested capital of 3.5x through the end of 2020.
SeaFort Fund II will maintain SeaFort’s established strategy with a focus on businesses with EBITDA between $2 million and $15 million that operate in industrial or business services sectors, including equipment service, niche manufacturing and value-added distribution.
photo credit: SeaFort Capital
News Release
SeaFort Capital Announces the Creation of SeaFort Fund II
/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES/
HALIFAX, NS, Oct. 4, 2021 /CNW/ – SeaFort Capital Inc. (“SeaFort”) has launched SeaFort Capital Fund II (“SeaFort Fund II”), with $110 million of initial committed capital. First closing exceeded target and SeaFort Fund II is on pace to achieve its final target of $160 million in committed capital. SeaFort Fund II is a growth-focused buyout fund that intends to make majority investments in Canadian lower-mid-market businesses operating in core industrial and business services sectors. The new fund is designed to allow SeaFort to hold investments for a longer period than most established private equity firms, which means that SeaFort can maintain its established patient approach.
SeaFort Fund II marks the first time that eligible investors are able to join SeaFort’s founding investors, which include members of the Sobey and McCain families. In addition to a $40 million lead commitment from SeaFort’s founding investors, SeaFort Fund II has secured commitments from Export Development Canada (“EDC”), the Canadian Imperial Bank of Commerce, BMO Capital Partners, and several other prominent investors, including successful entrepreneurs and families from across Canada. Jessiman Family Investments Inc. (“JFI”) is a significant limited partner investor in SeaFort Fund II. JFI will be represented on the SeaFort Fund II limited partner advisory committee by Peter Jessiman, who will serve as Chairman.
Rob Normandeau, SeaFort’s Managing Partner and President commented: “We are thrilled to be partnering with such a strong group of investors to establish SeaFort Fund II. This is a major milestone for SeaFort. We have identified and will continue to identify mid-sized Canadian businesses that provide compelling investment opportunities. We are enthusiastic about continuing to partner with top managers to grow best-in-class Canadian businesses while delivering strong returns for our investors.”
Scott McCain said: “I am proud to be a founding SeaFort investor and pleased to extend my commitment to the new fund. Moving forward, SeaFort will continue to demonstrate its Atlantic Canadian values and will invest in businesses across the country to help them grow for the benefit of all stakeholders”. Rob Sobey added: “The new investors in SeaFort Fund II form an impressive group of successful business owners, families and institutions from across Canada. They will be a source of not only capital, but also advice, expertise and relationship support to Rob Normandeau and team as they make and manage investments.”
“We see SeaFort Capital as a strategic partner for EDC that will enhance opportunities for mid-market companies both in Atlantic Canada and across the country,” said Dan Mancuso, Senior Vice-President of Financing and Investments at EDC. “We look forward to collaborating with SeaFort Capital and seeing the positive impact in scaling mid-market companies through the launch of SeaFort Fund II.”
SeaFort launched almost a decade ago and since its inception has grown significantly, demonstrating a gross internal rate of return on its investments of 28% and a multiple of invested capital of 3.5x through the end of 2020*. SeaFort Fund II will maintain SeaFort’s established strategy with a focus on businesses with EBITDA between $2 million and $15 million that operate in industrial or business services sectors, including equipment service, niche manufacturing and value-added distribution.
Torys LLP acted as counsel for SeaFort Fund II and Stewart McKelvey LLP acted as counsel for SeaFort in connection with the formation of SeaFort Fund II.
About SeaFort Capital
Founded in 2012, SeaFort is a private equity firm based in Halifax, Nova Scotia. SeaFort partners with talented managers to build value by growing and improving Canadian lower-mid-market businesses. SeaFort is currently investing SeaFort Fund II. To learn more about SeaFort, please visit www.seafortcapital.com.
No securities regulatory authority has approved or disapproved the contents of this press release. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of SeaFort Fund II in any jurisdiction where such offer, solicitation or sale would be unlawful. SeaFort Fund II is offered only to eligible investors in accordance with prospectus exemptions under applicable securities laws.
This press release contains “forward-looking information” within the meaning of applicable Canadian. securities legislation. Forward-looking information includes, but is not limited to, information with respect to the operations, investment strategy and processes of SeaFort or SeaFort Fund II, as well as SeaFort Fund II’s ability to identify and conclude transactions with acquisition targets and complete subsequent liquidity events. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of SeaFort Fund II to be materially different from those expressed or implied by such forward-looking information, including risks associated with the private equity industry such as economic and market conditions, the ability to raise sufficient capital, the ability to identify and conclude acquisitions of suitable investment opportunities and complete liquidity events on favourable terms as well those risks discussed in the private placement memorandum of SeaFort Fund II.
*Gross IRR represents the interim annualized return before fees, expenses and carried interest. Net returns are not calculable for individual investments. If calculable, net returns would have been lower given the effect of fees expenses and carried interest.
SOURCE SeaFort Capital Inc.
For further information: Media Contacts: Rob Normandeau, Managing Partner & President, rnormandeau@seafortcapital.com