Canadian specialty finance firm Crown Capital Partners has increased the size of its fourth special situations fund to $175 million. Crown Capital Fund IV, which initially closed in September 2015, received an additional commitment of $50 million. It has a maximum limit of $300 million, which may be reached through additional closings expected up until September 2018. As reported by PE Hub Canada in 2015, Crown Capital is pursuing a two-track fundraising process that includes public sources. To date, Fund IV has invested $110 million of debt and quasi-equity in six deals. This includes the $15 million invested last month in Source Energy Services.
Crown Capital Partners Announces $50 Million Upsizing of Crown Capital Fund IV, LP
CALGARY, Jan. 18, 2017 /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 $50 million closing for Crown Capital Fund IV, LP. (“Crown IV LP” or the “Fund”), bringing the current total capital committed to the Fund to $175 million. To date, $110 million has been invested by the Fund in six transactions.
“This upsizing deepens our relationships with our institutional limited partners and is a clear testament to the quality of our growing portfolio,” said Chris Johnson, Crown’s President & CEO. “We continue to deliver on our key milestones. We have completed three transactions since November 2016, adding $60 million of new investments into Crown IV LP. With this additional capital and our recently-completed $35 million credit facility, we have significantly increased Crown’s funding capacity, which we will use to capitalize on the demand for customized financing solutions in Canada’s middle market.”
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, through its wholly-owned subsidiary Crown Capital Funding Corporation, increased its capital commitment to the Fund by $11.25 million to $61.25 million. Crown’s increased commitment to CCF IV LP will be funded, in part, by its recently completed $35 million credit facility. After this closing, Crown holds a 35% interest in the Fund.
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.
For further information: Craig Armitage, Investor Relations, email@example.com, (416) 347-8954
Photo courtesy of Reuters/Christinne Muschi