Canadian specialty finance firm Crown Capital Partners has up-sized Crown Capital Power LP with $43 million in commitments, bringing total capital to $58 million.
The resources were provided by existing institutional investors as well as Crown, which grew its overall commitment to $25 million.
Launched last year, the fund invests in integrated energy platforms (IEP) that supply electric and thermal energy to mid- to large-scale consumers, such as industrial and commercial businesses, recreational facilities and condominiums.
Crown said the new capital will support additional projects identified by the fund’s expanded network of operator partners in and outside of the Ontario market.
Crown Capital Completes $43 million Upsizing of Crown Capital Power LP
CALGARY, March 4, 2019– Crown Capital Partners Inc. (“Crown” or the “Corporation”) (TSX: CRWN), a capital partner to entrepreneurs and growth businesses, today announced that it has completed an upsizing of approximately $43 million for Crown Capital Power Limited Partnership (“Crown Power Fund” or “the Fund”), increasing the Fund’s total capital to approximately $58 million. Crown has increased its commitment to the Fund by $10 million, bringing its total commitment to $25 million.
Launched in June 2018, Crown Power Fund is a private fund that intends to provide investors with attractive, utility-like income through the direct ownership of Integrated Energy Platforms (“IEPs”). IEPs are on-site generation assets that provide electric and thermal energy under long-term contracts to mid- to large-scale energy consumers, such as industrial and commercial businesses, recreational facilities, and condominiums, offering these customers more energy efficient, more reliable and less expensive energy than comparable services from public utilities. The proceeds of this financing will be used to develop additional projects identified by the Fund’s operator partners.
“This is a significant milestone for Crown Power Fund and reflects the advantages of seeding new funds with Crown’s capital for future growth and scale with third-party funds,” said Chris Johnson, President and CEO of Crown. “Our operating partners are building deep pipelines of new projects that they can execute on with the expanded capital base.”
Mr. Johnson added: “We had strong participation from our existing institutional investors, two of which are anchors both in our power fund and special situations fund. We see a tremendous opportunity to generate highly attractive risk-adjusted returns for these investors by building a portfolio of long-term contracts that deliver attractive utility-like monthly recurring cash flows.”
In addition to this fundraising, Crown has been expanding the network of experienced operators that are managing the sales, installation and servicing of the IEPs. Crown Power currently has three operators in the Ontario market, and expects to add several new partners in the coming quarters in additional markets outside of Ontario.
About Crown Capital Partners (TSX:CRWN)
Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.