Canadian private equity firm Clairvest Group has sold its interest in Wellington Financial, a Toronto-based specialty finance firm, to the Canadian Imperial Bank of Commerce (CIBC). No financial terms were disclosed for the deal, which includes the loan assets of Wellington Financial Fund V, which raised $300 million in 2015. Wellington was launched in 2000 by Clairvest and Mark McQueen, the firm’s president and CEO, to provide growth-oriented debt to Canadian and U.S. technology companies, many of them venture-backed. Wellington’s team will join the newly created CIBC Innovation Banking, which provides strategic advice and funding to innovative clients across North America.
Photo: Mark McQueen, president and CEO, Wellington Financial LP.
Clairvest Announces Sale of Wellington Financial
TORONTO, Jan. 08, 2018 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX:CVG) (“Clairvest”) today announced that it has sold its interest in Wellington Financial’s G.P. and the loan assets of Wellington Financial Fund V L.P. (“Wellington Financial”) to CIBC, a leading Canadian-based financial institution with 11 million clients and a market capitalization in excess of $50 billion.
Wellington Financial is a privately-held provider of growth capital to the innovation economy that Clairvest launched with Mark McQueen, Wellington’s President & CEO, in 2000. Since its inception, Wellington has become a leader in its sector across five institutionally-backed funds. Wellington provides venture loans to technology and life science companies across Canada and the United States. Wellington has grown to finance over one hundred North American-based growth companies from its Toronto base and its additional presence in Menlo Park, Santa Monica and New York City. Recently, UK-based Preqin named Wellington as one of the “Most Consistent Top Performing” Debt Fund Managers in the world. Since inception, Wellington delivered unlevered net returns in excess of 11.0% to its institutional, fixed income investors (after fees, credit provisions and upside sharing).
“Our partnership with Mark McQueen and his team has exceeded our hopes. We have built a great business for our institutional investors as well as our team, while delivering true value to our portfolio companies. It has been a privilege to be affiliated with the Wellington team and their success,” said Ken Rotman, CEO of Clairvest. “In the 18 years since we co-founded Wellington, we have watched with great pride as the team defined its market and took a leading role with outstanding metrics. We support Management’s desire to move to new heights with the capabilities and support of CIBC, and wish them continued success.”
“On behalf of the Wellington Financial management team, we thank Ken Rotman and his colleagues at Clairvest for what has been defining support and guidance over the past 18 years,” said Mark McQueen, President & CEO of Wellington Financial. “We are proud of our track record of 18 consecutive profitable years, the opportunity we’ve had to finance so many talented entrepreneurs, and are excited to continue to be a valuable contributor in the venture space for many years to come,” added Mr. McQueen. “Over almost 20 years, through the dot-com bust, the global financial crisis and the recent tech boom, our business relationship with Clairvest has personified its partnership approach to investing.”
The sale of Clairvest’s interest in Wellington Financial is expected to increase Clairvest’s book value by approximately $1.15 per share calculated based on the fair value of Clairvest’s investment in Wellington Financial as at September 30, 2017. Clairvest will continue to participate in its pro rata share of any profits realized from warrants previously granted to Wellington’s institutional funds.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
Photo courtesy of Wellington Financial