Clairvest sells interest in solid waste management company Arrowhead

• The buyer was Waste Connections
• Clairvest invested in Arrowhead in June 2020
• On a constant currency basis, the sale proceeds to Clairvest represent a multiple of capital invested of 12.3x and an IRR of 128 percent

Canadian private equity firm Clairvest Group has sold its interest in Arrowhead Environmental Partners, a non-hazardous solid waste management company that provides waste-by-rail disposal services to US markets. The buyer was Waste Connections.

No financial terms were disclosed.

Clairvest invested in Arrowhead in June 2020, partnering with waste management executives William Gay, James Francesco and Robert Berns. Over a three-year period, the company invested heavily in its transportation and disposal infrastructure and grew revenue by about 15x.

With the deal’s closing, Clairvest’s portion of sale proceeds was about $36 million. On a constant currency basis, the sale proceeds to the firm represent a multiple of capital invested of 12.3x and an IRR of 128 percent.

“In 2020, we made a strategic and well-reasoned decision to invest in an earlier staged company and it played out well. The outstanding result is primarily due to our management partners who leveraged their significant industry and waste-by-rail experience to execute the company’s strategy we all agreed on three years ago. We are thrilled to have been a part of Arrowhead’s success and look forward to seeing the continued growth trajectory of the business,” said Michael Castellarin, managing director at Clairvest, in a statement.

Based in Toronto, Clairvest is a mid-market private equity firm with C$4.3 billion of capital under management.

Vedder Price acted as legal advisor to Arrowhead.