Canadian specialty finance firm Crown Capital Partners has increased the size of its fourth special situations debt fund to $125 million. Crown Capital Fund IV, which initially closed last September, received an additional commitment of $25 million. The fund is expected to receive further commitments as new deal opportunities are identified. As reported by PE Hub Canada in June 2015, the recently listed Crown Capital is pursuing a two-track fundraising process that includes public sources. Total funds raised support the firm’s program for investing debt and quasi-equity in mid-market companies.
Photo: (left) Chris Johnson, president and CEO of Crown Capital Partners.
Crown Capital Partners Announces Upsizing of Crown Capital Fund IV, LP
CALGARY, July 15, 2016 /CNW/ – Crown Capital Partners Inc. (“Crown” or “the Corporation”) (TSX: CRN), which provides growth capital to successful mid-market companies, today announced it has completed a $25 million closing for Crown Capital Fund IV, LP. (“Crown IV LP” or the “Fund”), bringing the current total capital committed to the Fund to $125 million. To date, $50 million has been invested in three transactions.
Crown IV LP invests in Special Situations Financing transactions originated and managed by Crown. These consist of senior and subordinated loans with terms ranging from six months to five years, and are structured to limit ownership dilution and provide the borrower client with the ability to focus on growing their business. Crown IV LP has a maximum size of $300 million, with additional closings expected up until September 2018 as financing opportunities are identified. Crown has committed to invest up to $50 million in Crown IV LP and currently holds a 40% interest in the Fund.
“We appreciate the continued strong support of our limited partners,” said Chris Johnson, Crown’s President & CEO. “In addition to further commitments from most of our current investors, we added two new investors on this closing as we continue expanding our limited partner relationships. Looking ahead to the second half of 2016, the conditions for our alternative financing solutions remain strong, which is reflected in a robust pipeline, including several transactions at various stages. We are confident we will achieve our annual capital deployment targets in 2016.”
Crown (TSX: CRN) is a specialty finance company focused on providing capital to successful Canadian and select U.S. companies that are unwilling or unable to obtain suitable financing from traditional capital providers such as banks and private equity funds. Crown also manages capital pools, including some in which Crown has a direct ownership interest. Crown originates, structures and provides tailored special situation and long-term financing solutions to a diversified group of private and public mid-market companies in the form of loans, royalties and other structures with minimal or no ownership dilution.
This news release contains certain “forward looking statements” and certain “forward looking information” as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the deployment of capital in special situations transactions. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown’s periodic filings with Canadian securities regulators. See Crown’s most recent Annual Information Form for a detailed discussion of the risk factors affecting Crown. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
Photo courtesy of Crown Capital Partners