Novacap announces the closing on two new funds totalling $565 million to be invested in SME

Novacap, one of Canada’s leading private equity and venture capital firms, is proud to announce the closing on two new sectoral funds: Novacap Industries III, L.P. ($400 million) and Novacap Technologies III, L.P. ($165 million). The creation of these funds marks the largest private equity initiative in Quebec to date. The funds are part of the Novacap I (1981) and Novacap II (2000) fund series, which have invested over $300 million in the acquisition and development of over 50 companies. 

Novacap Industries III
Novacap Industries III will acquire majority interests in industrial or consumer product manufacturers and service companies with revenues of $40 M to $300 M. “We are very proud of having closed this third fund, which attests to how much faith our sponsors have in our team,” stated Jean-Pierre Chartrand, President of Novacap Industries. “This capital will enable us to build solid partnerships with other entrepreneurs so they can accelerate the growth of their businesses.

Novacap Industries has contributed to the success of many companies, including: 

• Rosmar Packaging Group Inc. – a leader in the cardboard printing industry;
• Les Aliments Multibar Inc. – the largest cereal bar manufacturer in North America;
• Knowlton Packaging Inc. – a leader in  personal hygiene products manufacturing;
• MAAX Inc. – Canada’s largest manufacturer of bathroom appliances and fixtures; 
• Metro Canada Logistics Inc. – a leading provider of warehousing services, transport, and custom solutions for the management of the supply chain in North America.

Novacap Technologies III
Novacap Technologies III will acquire major interests in Information Technology and Communication (ITC) firms with revenues of $10 M to $200 M. “Having invested heavily in the ITC field over the years, we’ve developed a unique expertise in acquiring and developing tech firms. Closing this fund will give us the financial resources required to continue helping innovative entrepreneurs build world-class companies,” added Marc Beauchamp, President of Novacap Technologies.

Novacap Technologies has contributed to the success of many tech firms, including:

• InnoMediaLogic (IML) Inc. – designs, makes and sells network cards to support multimedia communication applications;
• Teleglobe Canada Inc. – a global leader in overseas communications services;
• Octasic Inc. – designs, markets and supports integrated circuits for communication equipment providers; 
• ViXS – a leading developer of advanced video processing semiconductors.
   

Sponsors
Novacap is supported by some of the largest financial institutions in Canada, the United States and Europe. Novacap’s funding is provided by institutional investors, banks, insurance companies, pension funds, fund of funds, well-to-do families and individuals, as well as Novacap’s general partners. “The Caisse has been encouraging Novacap since its inception in 1981. We are therefore proud to partner once again with Novacap, for a total investment of $110 million in these two sectoral funds,” stated Normand Provost, Senior Vice-President, Private Equity of the Caisse de dépôt et placement du Québec. “These funds are totally consistent with our Quebec business partnership and development strategy since the majority of Novacap’s investments to date have been in Quebec businesses. This business relationship has been positive for the companies funded by Novacap, the Caisse and its depositors.”

Novacap – a true financial partner
“Novacap’s partners have extensive experience in operations, R&D, sales and marketing, financing, mergers and acquisitions, corporate growth and strategic development,” explained Jacques Foisy, Chief Financial Officer and General Partner of Novacap. “Our aim is to work closely with entrepreneurs to strengthen the foundation of their businesses, consolidate their industry, and foster the development of their technologies, operations and markets. Novacap is far more than an investor; it’s a partner that takes an active part in growing and building the value of the business.”

Well positioned to ensure the succession of Canadian SME
According to the Canadian Federation of Independent Business, 41% of Canadian small- and medium-size businesses may sell their business within the next five years.  Since 45% of Canada’s GDP comes from SME, the succession of these businesses will have major impacts on job creation and economic outlooks in the country. “Because of our solid expertise and considerable financial resources, we are very well positioned to play a leading role in the succession planning of Canadian SME owners,” added Jacques Foisy.

About Novacap
With over $750 million in assets under management, Novacap is one of Canada’s leading private equity and venture capital firms. Since 1981, its partnership strategy has helped over 50 companies accelerate growth and maximize value. Novacap is one of North America’s top private equity firms, with first-quartile returns in North America. For further information, visit www.novacap.ca.