Yellow Point Equity Partners has secured $150 million in the final close of its fourth private equity fund, earmarked for investments in mid-market companies in Canada and Northwestern United States.
Yellow Point Equity Partners IV met its $150 million target in the final months of 2015, the firm told PE Hub Canada. It is the largest fund raised in Vancouver-based Yellow Point’s 12-year history, bringing total assets under management to about $250 million.
A mix of limited partners, most of them Canadian high net-worth individuals and institutional investors, committed capital to the fund, Yellow Point said.
A high proportion of the investors were Western Canadian CEOs who have partnered with the firm over time. In addition to committing money, these CEOs assist Yellow Point’s investment pros in deal sourcing and evaluation, and lend value-added support to companies entering the portfolio.
Yellow Point announced Fund IV’s close in September, but did not disclose the target or amount raised. It declined to comment further on the fundraising.
In its September statement, the firm said Fund IV would show continuity with its long-standing market strategy, which focuses on building high-growth businesses in partnership with strong management teams. It expects to deploy between $10 million to $35 million per investment in five to seven companies over the next few years. Yellow Point tends to hold portfolio companies longer than most PE firms, observing a three to 15-year horizon.
Fund IV has already made its debut investment. In September, Yellow Point announced a majority investment in Calgary-based Edo Japan, a fast-casual Japanese restaurant franchisor with more than 100 locations across Canada. Financial terms were not released. Led by CEO Tom Donaldson, Edo will work with Yellow Point to achieve continued expansion of the business.
Yellow Point completed several other transactions last year. In October, an existing portfolio company, Bravo Oilfield Safety Services, merged with Target Safety Services. The deal created Bravo Target Safety LP, a one-stop shop for safety services and safety-related products.
Earlier in the year, Yellow Point also notched up a portfolio exit. It sold CBV Collection Services, an accounts receivable management specialist acquired in 2011, to Eli Global.
Yellow Point was founded in 2004 by Managing Partners Brian Begert and Dave Chapman. Its investment pros include Partner Tyler Smyrski, Vice President David Phillips, and Rusty Goepel, who chairs the firm’s investment committee.
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