Crown Capital divests control of mid-market lending arm

Crown Capital Partners has divested a controlling interest in Crown Private Credit Partners, a Canadian mid-market lending firm.

Crown Capital Partners has divested a controlling interest in Crown Private Credit Partners, a Canadian mid-market lending firm. No financial terms were disclosed. The buyers consist of Canadian Western Bank, Concentra Bank, Mount Logan Capital as well as Crown Capital executives Chris Johnson, Brent Hughes and Tim Oldfield. CPCP also assumed management of flagship private debt fund Crown Capital Partner Funding, which is in the realization stage.

PRESS RELEASE

CALGARY, AB, July 14, 2021 /CNW/ – Crown Private Credit Partners Inc. (“CPCP” or the “Company”) today announced the divestiture of a controlling interest in the Company by Crown Capital Partners Inc. (“CCPI”). The new purchasing ownership group consists of Canadian Western Bank (“CWB”), Concentra Bank (“Concentra”), Mount Logan Capital Inc. (“MLC”) as well as Chris Johnson, Brent Hughes and Tim Oldfield. CCPI has retained a 12.5% minority interest in the Company.
CPCP also announced that it has assumed management of CCPI’s flagship private debt fund, Crown Capital Partner Funding L.P. (the “Fund”), which is in the realization stage of its investing lifecycle. The Fund has generated gross returns since inception of approximately 15% and returns are expected to strengthen as equity positions are realized.

“This transaction supports our continued focus to build a private credit business that seizes on long-term trends to deliver exceptional results for investor clients across risk spectrums and market cycles,” said Brent Hughes, Managing Director and Chief Compliance Officer of CPCP. “With our highly experienced team, excellent long-term track record across multiple economic cycles, and added bench strength from the Company’s new shareholder group, CPCP will continue providing borrowers with exceptional results-based execution and its investor clients with outstanding investment opportunities within a growing industry.”

CPCP will deploy internally generated capital as well as raise new third-party funds focused on lending to successful mid-market Canadian enterprises, particularly for mergers and acquisitions. With two chartered banks as shareholders, CPCP anticipates expanding beyond its roots to offer lower-cost, more traditional lending solutions.

“We are pleased to grow our long-standing relationship of nearly 30 years with CPCP’s team,” says Daryl MacLellan, Senior Vice President, Specialty Finance of CWB. “This transaction further enhances our reach in the mid-market commercial space throughout Canada.”

“We are very pleased to be extending the relationship with CPCP’s team that we started several years ago, and joining the other shareholders on this strategic initiative for our bank,” said Don Coulter, President & CEO of Concentra Bank. “As Concentra scales its mid-market commercial lending business, CPCP’s established presence in the market will be a significant asset to us.”

“We are thrilled to become shareholders of CPCP and expand Mount Logan’s Canadian presence,” said Ted Goldthorpe, CEO and Chairman of MLC. “With Crown, we expect to co-develop new and highly attractive investment opportunities for Canadian investors.”

About Crown Private Credit Partners Inc.
CPCP is a leading private credit manager focused on private debt opportunities across the credit spectrum. CPCP has offices in Calgary and Toronto. www.CrownPrivateCredit.ca.