Novacap wraps up sixth tech buyout fund, raising $1.86bn

Canadian private equity firm Novacap has closed its sixth technology fund, raising $1.865 billion.

Canadian private equity firm Novacap has closed its sixth technology fund, raising $1.865 billion. The fund, which exceeded its $1 billion target, was backed by new and existing investors, including sovereign wealth funds, pension plans, insurers, endowments and foundations, family offices and advisory firms. It will maintain Novacap’s strategy of making control investments in technology and technology-enabled businesses in North America.

PRESS RELEASE

MONTREAL, Feb. 17, 2021 /CNW/ – Novacap, one of Canada’s leading private equity firms, announced today the closing of Novacap TMT VI (“TMT VI” or “the Fund”) at US$1.865 billion, including significant commitments from the Novacap partners and employees as well as from Novacap’s Executive Fund. The Fund is the largest ever raised by Novacap.

With strong demand, TMT VI was significantly oversubscribed, exceeding its target of US$1 billion. Virtually all investors in the firm’s TMT V vehicle committed to TMT VI, while adding important new investors from the US, Europe, Asia and the Middle East. The investor base for TMT VI includes sovereign wealth funds, public and corporate pension plans, insurance companies, endowments and foundations, family offices and advisory firms.

“We are extremely gratified for the opportunity to partner with such a prominent group of investors from around the globe,” said Pascal Tremblay, President, CEO and Managing Partner of Novacap. “The successful closing of TMT VI continues the strong momentum in all our verticals: TMT, Industries and Financial Services. The Novacap franchise has never been stronger, and we are grateful for this momentum as we enter our fifth decade. Just as we have done throughout our history, TMT VI will seek to invest in growing, market-leading businesses led by talented entrepreneurs seeking a value-added partner to accelerate growth.”

The Fund will continue the successful strategy of Novacap’s previous TMT funds by making control growth investments in profitable technology and technology-enabled businesses. Sectors of interest include software, business services, internet infrastructure, and e-commerce, including solutions in the energy and healthcare markets. TMT VI will be led by partners Pascal Tremblay, Stéphane Tremblay, François Laflamme, Ted Mocarski, Eric Desrosiers, and David Lewin and supported by investment and operations teams with extensive experience in the TMT sector.

Recent milestones in the firm’s TMT vertical include the exits of Intelerad and PKWare, and the initial public offering of Nuvei Corporation (TSX:NVEI, NVEI.U). Nuvei was the largest ever IPO of a Canadian technology company, with a current market capitalization of C$10.3 billion.

Credit Suisse Securities (USA) LLC acted as exclusive advisor and placement agent for TMT VI and Davies, Ward, Phillips & Vineberg LLP acted as legal counsel.

About Novacap
Founded in 1981, Novacap is a leading Canadian private equity firm with more than C$6B of AUM that has invested in more than 90 platform companies and completed more than 140 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, Quebec and Toronto, Ontario. For more information, please visit www.novacap.ca.