On August 21, 2001, Clairvest Group Inc., a Toronto-based merchant bank, closed the Clairvest Equity Partners Limited Partnership, an investment fund formed by Clairvest to raise capital for private equity investing. Clairvest raised $164 million from a number of institutional investors including the Canada Pension Plan Investment Board who contributed $50 million to the fund and also invested approximately $17 million directly in Clairvest through the subscription for non-voting equity shares. Other investors in the fund include large Canadian pension funds and insurance and investment companies.
Clairvest Group Inc. has committed to co-invest $55 million dollars of its own capital along-side the fund bringing the total capital pool to $219 million. Clairvest will receive a management fee for managing the fund and ultimately, a share in its profits. Investments made by the fund and Clairvest will be completed pro-rata 75-25 in proportion to their capital commitments to the $219 million capital pool.
The fund will focus on mature firms in all sectors that require capital to fuel growth through acquisition and will also take significant equity positions in undervalued companies. Eight to 12 North American companies will receive $15 to $25 million from the capital pool to support their expansion strategies.
Clairvest Group Inc. was represented by a team from Goodmans LLP, led by David Matlow and including Mitch Sherman, Carrie Smit and Jon Northup (tax) and Matt Angus and Miro Oballa (corporate). Clairvest was also represented by in-house counsel Heather Crawford and was advised on US legal matters by Jay G. Milkes of Reboul, MacMurray, Hewitt, Maynard & Kristol in New York. Canada Pension Plan Investment Board was represented by Vice President and General Counsel Jane Beatty, and a team from Osler, Hoskin & Harcourt LLP comprised of Deborah Alexander, Chris Portner and John Groenewegen. The fund’s lead investor was represented by Frank Guarascio and Peter Gilchrist of Blake, Cassels & Graydon LLP.