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Novacap TMT IV LP beats target in final close, raises $375 mln

Canadian private equity firm Novacap has closed its fourth technology, media and telecommunications fund, Novacap TMT IV LP, raising $375 million. The fund surpassed its target of $350 million, and is more than twice the size of the $180 million Fund III, closed in 2007. Fund IV was backed by a range of institutional investors, including Teralys Capital, Caisse de dépôt et placement du Québec, Investissement Québec, Export Development Canada, Business Development Bank of Canada and several Canadian and Québec pension funds. Last December, peHUB Canada interviewed Novacap president and managing partner Pascal Tremblay about the fund and technology buyout opportunities in North America. Founded in 1981, Novacap is based in Longueuil, Québec.

PRESS RELEASE

NOVACAP Closes Fourth Private Equity Fund at $375 Million

Leading Montreal-based private equity firm launches

Canada’s largest fund dedicated to technology, media and telecommunications

Montreal (Quebec), May 14, 2014 – Montreal-based private equity firm NOVACAP is pleased to announce today that it has raised $375 Million to form Canada’s most important equity fund in the technology, media and telecommunications sector (TMT), NOVACAP TMT IV. Backed by leading financial institutions, state owned business (SOB), Canadian pension funds, banks, and family offices, this new fund aims at financing small and medium-sized companies with high growth potential.

“After the success and momentum of the Novacap Technologies III fund, we are proud to launch NOVACAP TMT IV, which aims at filling a void one of the fastest growing sectors in developed countries in recent years: the TMT sector. The projected investments will enable the targeted companies to benefit from NOVACAP’s seasoned professional team for active support, deep operational expertise and long-term capital, in order to help them as they strive to reach their full potential on provincial, national and international levels, and contribute to grow Canada’s strong reputation abroad,” said Pascal Tremblay, President of NOVACAP.

Many important financial partners are involved in this unique project, including: Teralys, Caisse de dépôt et placement du Québec, Investissement Québec, Export Development Canada, Business Development Bank of Canada, several Canadian and Quebec pension funds, and many other large investors from the financial sectors.

“We are proud to support and partner with NOVACAP in this new TMT IV fund, said Mr. Jacques Bernier, Managing Partner at Teralys. This fund, with its unprecedented size in Canada was raised in record time, and will enable growth in Quebec’s high potential companies. The importance of this fund and its success clearly demonstrate the dynamism of our industry in Quebec.

This partnership is in line with Teralys’ mandate and philosophy that we share with our partners, Investissement Québec, Caisse de dépôt et placement du Québec et le Fonds de solidarité FTQ.”

About Novacap

Novacap is one of Canada’s leading private equity firms. Since 1981, its distinct partnership approach based on operational expertise has helped more than 50 companies accelerate their growth and maximize their value. Novacap ranks among the top private equity firms in North America. The results of Novacap I and Novacap II rank Novacap in the first quartile of the funds classified by Thomson Venture Economics. For more information, please consult: www.novacap.ca.

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