Canadian mid-market private equity firm Birch Hill Equity Partners has closed its fifth fund, Birch Hill Equity Partners V LP, at $1.3 billion in committed capital. The oversubscribed fund, backed by a mix of North American and European institutional investors and family offices, surpassed the $1.04 billion raised by Fund IV in 2011. As reported by PE Hub Canada in 2014, Birch Hill was expecting to raise close to the same amount for Fund V as its predecessor. The Toronto-based firm said it will probably make investments ranging from $30 million to $600 million, across 10 to 12 companies within Fund V. Birch Hill reports having delivered an 18 percent cumulative average rate of earnings growth over the past 20 years.
Birch Hill Closes Fund V at $1.3 billion
TORONTO, January 25, 2016 − Birch Hill Equity Partners is pleased to announce it has closed its fifth private equity fund, raising $1.3 billion from a broad base of international investors. The fund was oversubscribed and surpassed its target size by 30 per cent, reflecting strong interest from existing and new investors. Birch Hill will continue to invest in leading Canadian mid-sized companies in a variety of market segments.
Together with co-investors, Birch Hill expects to make investments ranging from $30 million to $600 million, across 10 to 12 companies within Fund V. These investments will support those companies in making many more acquisitions themselves as well as driving organic growth. Over the past 20 years, Birch Hill portfolio companies have delivered an 18% cumulative average rate of earnings growth.
“The ongoing support we have received from our investors demonstrates their strong interest to continue to help us build great Canadian companies,” said Birch Hill partner Steve Dent.
The fund’s investors are a mix of institutions and family offices primarily from Canada, Europe and the United States. Birch Hill’s track record of consistently generating returns by sustained company building was a key factor in raising Fund V.
“Birch Hill has been a great partner for us at Hi-Pro Feeds over the past four years,” said Dean Prevost, CEO of Hi-Pro Feeds. “The Birch Hill team has worked very closely with us as we restructured and repositioned our company for growth.”
Birch Hill’s team of 25 investment professionals work together as an active partner with top management. With $3 billion in capital under management, 20 partner companies and 36 fully realized investments since 1994, Birch Hill is focused on long-term value creation in the Canadian mid-market. For more information about Birch Hill Equity Partners, please visit www.birchhillequity.com.
Partner and COO
Birch Hill Equity Partners Management Inc.
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