Canadian private equity firm Penfund has closed its fourth fund, Penfund Capital Fund IV, with committed capital of $460 million. This is an 80% increase on Penfund Capital Fund III‘s $250 million fund. The funds were provided entirely by a group of Canadian institutional investors.
Penfund announced today that it has recently closed its fourth fund, Penfund Capital Fund IV, with committed capital of $460 million. This amount is about 80% greater than the $250 million committed to Penfund Capital Fund III and was provided entirely by a group of Canadian institutional investors. Penfund is grateful for the consistent support of these investors and is particularly proud that all investors who have supported Penfund’s predecessor funds have continued their support with Penfund Capital Fund IV.
Penfund Capital Fund IV will operate as a specialty lender and equity investor targeting investments of $15 – $90 million in Canadian and U.S. mid-market corporations. In its capacity as a specialty lender, the Fund will provide unitranche facilities, high yield debt, mezzanine debt, standby lines and other banking products. As an equity investor, the Fund will co-invest with equity sponsors and will make stand-alone minority and control equity investments. The Fund will have an unusual capacity to provide all forms of capital needed by mid-market companies and its broad product range will allow it to provide highly customized financing solutions to its clients.
Penfund is Canada’s oldest independent private equity firm, having been established in 1979. Throughout its history, Penfund has managed capital for leading Canadian institutions, predominantly pension funds, and has invested about $2.5 billion in about 220 Canadian and American companies. Penfund is owned by its partners, all of whom are employed in the business.