Vancouver-based Bond Capital has been named to Preqin‘s global list of most consistent performing mezzanine fund managers.
Bond, a provider of mezzanine debt, financing and equity to businesses in Western Canada and Northwestern United States, was cited in a league table compiled from data contained in the forthcoming 2015 Preqin Alternative Assets Performance Monitor.
Bond and two other firms, France’s IFE Mezzanine and U.K.-based MezzVest, achieved a top score of 1.33, which Preqin calculates using IRR and multiple data collected from its PE funds database. The best possible score is 1.00.
Preqin arrived at this year’s performance rankings by examining the data of pre-2013 vintage funds. Eligible fund managers must be active, meaning they have raised at least three funds of a similar strategy, and have either recently raised a fund or are currently raising one.
Preqin told peHUB Canada that Bond was compared against a peer group of nearly 100 mezzanine firms managing about 200 funds.
Bond Managing Director Corry Silbernagel declined to comment on the report, except to say “we’re very flattered.”
Consistent outperformance may help to explain why the firm was selected in May 2015 to oversee the $85 million private equity fund of Beedie Capital Partners. Beedie, which is led by real estate developer Ryan Beedie, picked Bond to “effectively create Canada’s largest merchant bank.”
In the addition to the Beedie pool, Bond currently has six funds under management, the values of which are not disclosed. It completed its most recent partnership, Bond Capital Mezzanine Fund III LP, in 2012 and has subsequently raised a co-investment vehicle. Investors in these funds are primarily family offices and high net worth investors.
Bond operates as a one-stop shop for specialty loans and structured equity. Its deals, which engage companies focused on expansion, succession or equity-withdrawal strategies, utilize mezzanine and related debt facilities. Direct investments range from $2 million to $30 million.
During its 13 years of investment activity in North America’s private equity market, Bond has tended to keep a low profile. It rarely issues news releases and as a rule does not publish details about its portfolio.
Some Canadian deals in which Bond has partnered have been disclosed. For example, in 2013, it partnered with U.S. private equity firm Mill City Capital in the take-private acquisition of Bonnett’s Energy Corp, a downhole services provider. Bond committed equity and debt to the $115 million transaction.
Last December, Mill City and XALTA Capital Partners formed a new oilfield services business, Command Fishing and Pipe Recovery, through a merger of a Bonnett’s division with two other entities. Bond also invested in that syndicated deal.
Bond was founded in 2002 by Managing Partner Davis Vaitkunas. He was joined in 2005 by Silbernagel and Jim Elliott, the firm’s managing director and CFO.
Photo of investor winning race courtesy of Shutterstock
Photo of Corry Silbernagel, Davis Vaitkunas and Jim Elliott courtesy of Bond Capital