Canadian private equity firm Novacap has closed its debut financial services fund, raising C$417 million from institutions, family offices and high-net worth investors. Trans-Canada Capital was the lead investor. Novacap Financial Services I will invest in mid-sized North American companies operating in financial infrastructure, specialty insurance and distribution, asset and wealth management, alternative lending and other sectors.
MONTREAL, Sept. 30, 2021 /CNW/ – Novacap, a leading North American private equity firm, today announced the final closing of the firm’s very first fund dedicated entirely to financial services. The fund raised an astounding C$417 million from institutional investors, family offices and high net worth investors. Trans-Canada Capital, one of the country’s leading investment management firms, acted as the lead investor.
Novacap’s Financial Services’ team applies Novacap’s time tested investment and partnership approach to help companies in various sectors of the financial services industry accelerate growth and create value. The fund focuses on mid-sized North American companies, primarily in Canada, operating in a range of sectors including financial infrastructure, specialty insurance and distribution, asset and wealth management, and alternative lending.
Novacap is proud to have deployed such a specialized fund-the first of its kind in Canada
The Fund has already started delivering on its strategy, through investments in four platform companies: Accurate group, a real estate technology services leader, AGA, a group benefits advisory and third-party administration firm, GroupAssur, a P&C MGA specializing in custom commercial insurance products and Optiom, a provider of vehicle replacement coverage. To date, the Fund has made seven add-on investments to execute on its growth strategy within these portfolio companies.
“Driven by a strong demand from Canadian entrepreneurs looking for growth capital and specialized expertise in the financial services industry, Novacap is proud to have deployed such a specialized fund, dedicated entirely to the financial services sector— the first of its kind in Canada,” said Marcel Larochelle, Managing Partner of Novacap Financial Services. “We are highly confident in this focused strategy and our ability to help our entrepreneurs realize the full potential of our portfolio companies by helping them execute their growth plan”.
Founded in 1981, Novacap is a leading North American private equity firm with more than C$8B of AUM that has invested in more than 100 platform companies and completed more than 150 add-on acquisitions. Applying its sector-focused approach since 2007 in TMT, Industries and now Financial Services, Novacap’s deep domain expertise can accelerate company growth and create long-term value. With experienced, dedicated investment and operations teams as well as substantial funding, Novacap has the resources and knowledge to build world-class businesses. Novacap has offices in Brossard, Québec and Toronto, Ontario. For more information, please visit www.novacap.ca.