Cortec’s new $1.1 bln fund to target Canadian mid-market deals

U.S. private equity firm Cortec has closed its latest fund, Cortec Fund VI LP, at a hard cap of US$1.1 billion. The fund, which invests in mid-market specialty healthcare, consumer and engineered products, and value-added distribution and service businesses, has targeted Canada for potential opportunities. Canadian companies that currently reside in Cortec’s portfolio include Canadian Hospital Specialties, which the New York-based investor acquired from Hammond, Kennedy, Whitney & Co in 2013.


Cortec Completes Raise Of Cortec Fund VI

(New York, NY) – Cortec Group (“Cortec”), a New York-based private equity firm which invests in U.S. and Canadian middle-market specialty healthcare, consumer and engineered products, and value-added distribution and service businesses, announced that on May 21, 2015, Cortec Group Fund VI, L.P. and its affiliated funds (“Cortec Fund VI”) held a final closing on $1.1 billion.

“We are very pleased to announce that after approximately two months of fundraising-related meetings we completed the Cortec Fund VI raise, hitting our hard cap,” said Dave Schnadig, a Managing Partner at Cortec. “We are appreciative of the support from our existing investors and enthusiastic about the addition of several well-respected new institutions to our latest limited partnership,” added Jeff Lipsitz, a Cortec Managing Partner. “To experience the firm’s evolution from its first institutional capital pool of $27 million in 1990 to our current level is extremely gratifying,” said Scott Schafler, a Cortec founder and Managing Partner. The senior Cortec team, which includes Partners Jon Stein, Gene Nesbeda and Jeff Shannon, has worked together for many years and remains intact for Cortec Fund VI.

Cortec focuses on investing in three types of opportunities:

Entrepreneurs leading high growth companies who are looking for an experienced teammate to help them implement systems, processes and controls, and hire personnel to build the foundation for sustainable future expansion;
Business owners seeking to transition out of their companies who want a value-added partner to manage the process while maintaining the culture and goodwill of the business with employees, customers and suppliers; and
Carve-outs of corporate divisions which lack a complete leadership team, cohesive business strategy and/or face other challenges requiring change or improvement.
“Based on various third-party indices, under the leadership of its current Managing Partners, Cortec has delivered consistently attractive returns to its investors,” noted Mike Najjar, who was promoted to Managing Partner coincident with the final closing of Cortec Fund VI.

“We believe our success in working with business owners who want a partner that brings a combination of real-world business experience and private equity knowledge is unrivaled in the middle market,” said Jeff Lipsitz. Dave Schnadig added, “In fact, a number of our former and current portfolio company CEOs and senior executives believe so strongly in our strategy that they invested nearly $20 million in Cortec Fund VI.”

As with its prior three funds, Cortec Fund VI will focus on platform investments with revenues of more than $25 million and $5-30 million in trailing EBITDA.

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