Wellington Financial has reached a first close on Wellington Financial Fund IV raising $177.5 million. The firm also announced plans to open a second US office in Palo Alto later this year.
Wellington Financial LP, a privately-held specialty finance firm providing growth capital to U.S. and Canadian-based companies, announced today the first closing of Wellington Financial Fund IV, as well as plans to open a second U.S. office in the Palo Alto area later this year.
Wellington’s 2006-vintage Fund III was capitalized with $150 million of re-circulating institutional equity commitments. That fund led over $300 million of financings via 52 loans over its life, earning limited partners a profit in every fiscal quarter during that six- year period.
The new Fund IV raised $177.5 million of re-circulating equity in its first close, drawing commitments from leading Canadian institutional investors, pension plans and family offices. “The successful first close of our fourth fund is a clear indication that Wellington’s agile investment approach continues to benefit investors, the companies we finance, and our VC partners,” said Mark McQueen, Wellington Financial’s President and Chief Executive Officer.
To further enhance Wellington’s strong U.S. presence, the firm will be adding a second California office and additional U.S.-based employees later this year. The firm opened its first U.S. office and staff in Santa Monica, California, in November 2009. “Entrepreneurs and U.S. venture capitalists have responded positively both to our team and non-amortizing term debt product over the past three years,” said McQueen. “From a standing start, 20 of our last 25 investments have been to U.S.-based, VC-backed innovation companies.”
“Wellington’s impressive track record speaks to the market opportunity that Wellington satisfies as well as the consistently attractive returns earned by our LPs over the past 12 consecutive years across three different funds,” added Ken Rotman, Wellington’s Chairman. “We are grateful for the support we have received from the institutional limited partnership community, and we are delighted to welcome four new Canadian pension funds as LPs in Fund IV.”
“Wellington has been a valuable partner for a number of our portfolio companies,” said Ren Riley, General Partner at Oak Venture Partners, of Palo Alto. “The Wellington team has a long track record of creatively financing high quality growth companies. Their capital is patient, True Growth Capital™. We look forward to continuing our relationship as the firm deploys its impressive fourth fund.”
“GrandBanks Capital and Wellington have enjoyed mutual success on several of our portfolio companies over the past three years”, said Charley Lax, Managing General Partner of GrandBanks Capital, of Wellesley, Massachusetts. “Wellington knows what it means to truly partner with management and VC board members.”
Wellington Financial LP has earned its LPs top quartile 3-, 5- and 10-year absolute and risk-adjusted returns since the firm’s inception in 2000. Fund IV will continue to follow the same proven business model by financing private and public companies with a demonstrated customer following, talented management, proven growth opportunities and committed institutional investors.
About Wellington Financial LP
Wellington Financial LP is a privately-held specialty finance firm providing term, venture and amortizing loans up to $30 million. Wellington Financial LP is currently managing a $500 million investment program with offices in Toronto, Canada, and Santa Monica, California. Wellington Financial LP is managed by a partnership controlled by fund management and Clairvest Group Inc. (CVG:TSX), who jointly have contributed a large financial stake to the Fund. LPs include several of Canada’s largest institutional investors, pension funds, family offices and crown corporations. Please visit the fund website at www.wellingtonfund.com, or the Wellington Financial team blog at www.wellingtonfund.com/blog.
Wellington Financial LP
Tel: (416) 682-6007
Wellington Financial LP
Bay Adelaide Centre
333 Bay Street, Suite 1620
Toronto ON M5H 2R2
t (416) 682-6007
f (416) 682-1160