CPS Capital wraps up debut mid-market fund at C$100m

Toronto-based CPS Capital has closed CPS Partners Fund with C$100 million in committed capital, ahead of a C$75 million target.

Toronto-based CPS Capital has closed CPS Partners Fund with C$100 million in committed capital, ahead of a C$75 million target. The fund will make majority investments in up to seven lower mid-market businesses located across North America. It has already made three platform acquisitions: Cloudli, PharmaSmart International and HiQo Solutions.


CPS Capital closes $100 million first committed capital fund

TORONTO, Aug. 18, 2021 /CNW/ – CPS Capital (“CPS” or “the firm”) announced the final closing of CPS Partners Fund LP with commitments totaling C$100 million. New family office and individual limited partners joined strategic anchor investors and long-time limited partners to commit capital in significant excess of the fund’s target. CPS Partners Fund was launched by CPS in 2020, with an original target fundraise of $75 million.

CPS Capital invests in high-quality small and medium-sized businesses across North America. CPS Partners Fund follows three single-asset funds raised by CPS.

“Ever since we began investing in 2013, we immediately saw the benefits and value available in the SMB space,” said Jeff Tung, founding Partner of CPS. “Even as most other asset classes have seen significant price inflation in the last few years, the microcap space continues to be a buyer’s market. Our team’s strong focus on developing deeper relationships with Founders and contributing operational excellence will allow us to continue to capitalize on these opportunities.”

“From the outset, Mike, Jeff and I were confident that investors would see the same opportunities that we see in the microcap space, but we are truly humbled by the overwhelming support and demand throughout the process” said Jason Fenn, CPS Partner. “We have been tremendously fortunate to attract very sophisticated and top tier LPs who have diverse backgrounds and experiences. Our investors are a dynamic and engaged group that bring a wealth of experience across many industries. The strength of our investors has added an additional strategic advantage when analyzing potential acquisition opportunities and working with management teams to build and transform our portfolio companies to incorporate best/industry leading practices.”

CPS plans to make majority investments in five to seven platform assets over the life of the fund. The firm has already made its first three platform acquisitions from the fund in Cloudli (formerly babyTel), a Montreal-based unified communications company serving SMBs across North America; PharmaSmart International, a leading provider of health kiosks based in Rochester, New York; and HiQo Solutions, a Georgia-based provider of specialty outsourced development, IoT, and data analytics services.

About CPS Capital

Founded in 2013, CPS Capital is a lower-middle market private equity firm based in Toronto, Canada. CPS looks to generate attractive returns by identifying promising investment opportunities in historically overlooked segments of the Canadian and US SMB landscape. The firm partners with driven entrepreneurs and management teams who have built promising companies that demonstrate potential for substantial growth. CPS is differentiated by the long-term, hands-on approach it takes to its investments, leveraging the deep operating experience of its principals.