Canadian private equity firm Wellington Financial LP has reached a second close on its fourth partnership. Wellington Financial Fund IV has to date raised a total of C$190 million. The Toronto, Ontario-based Wellington, which did a total of C$78 million in transactions in 2012, is a specialty finance firm that provides venture debt and growth capital to technology and traditional businesses located across Canada and the United States.
Wellington Financial LP, a privately-held specialty finance firm providing growth capital to U.S. and Canadian-based companies, announced today the second closing of Wellington Financial Fund IV.
Wellington’s 2006-vintage Fund III was capitalized with $150 million of re-circulating institutional equity commitments. That fund led over $300 million of financings via 52 loans over its life. Fund III limited partners earned a profit in every fiscal quarter during that six- year period, enjoying a GAAP internal rate of return in excess of 9.0%, net of all fees and expenses. On September 5, 2012, Wellington announced that the first close of Fund IV had attracted $177.5 million of re-circulating equity commitments from leading Canadian institutional investors, pension plans and family offices.
The new Fund IV has now raised $190 million of re-circulating equity via the addition of both a new institution and family office. “Our firm received tremendous support from the institutional limited partner universe in 2012,” said Mark McQueen, Wellington Financial’s President and Chief Executive Officer. “We led $78 million of transactions last year, a majority of which were for U.S.-based, venture capital-backed innovation companies. Since we began doing business in the U.S. in late 2009, our capital has helped American entrepreneurs preserve and/or create more than 3,700 U.S. jobs.”
Portfolio company exits in 2012 included BelAir Networks (acquired by Ericsson), Clairmail (acquired by Monitise plc), Ember (acquired by Silicon Labs) and Pivot (acquired by CME Group).
“Wellington’s impressive track record speaks to the market opportunity that we satisfy as well as the consistently attractive returns earned by our LPs over the past 12 consecutive years across three different funds,” added Ken Rotman, Wellington’s Chairman.
Wellington Financial LP has earned its LPs top quartile 3-, 5- and 10-year absolute and risk-adjusted returns since the firm’s inception in 2000. Fund IV will continue to follow the same proven business model by financing private and public companies with a demonstrated customer following, talented management, proven growth opportunities and committed institutional investors.
About Wellington Financial LP
Wellington Financial LP is a privately-held specialty finance firm providing term, venture and amortizing loans up to $30 million. Wellington Financial LP is currently managing a $600 million investment program with offices in Toronto, Canada, and Santa Monica, California. Wellington Financial LP is managed by a partnership controlled by fund management and Clairvest Group Inc. (CVG:TSX), who jointly have contributed a large financial stake to the Fund. LPs include several of Canada’s largest institutional investors, pension funds, family offices and crown corporations.