Canadian private equity firm Yellow Point Equity Partners has closed its fourth buyout fund, ear-marked for investments of between $10 million to $35 million in mid-market companies. The amount raised by Yellow Point Equity Partners IV LP was not published. The Vancouver-based firm also announced Fund IV’s debut investment in Edo Japan, a fast-casual Japanese restaurant franchisor. Founded over 35 years ago in Calgary, Edo Japan today has more than 100 locations across Western Canada. Its partnership with Yellow Point will focus on its continued growth. Yellow Point’s other portfolio investments include Bravo Oilfield Safety Services Inc, a safety solutions provider to the energy industry.
Yellow Point Closes Fund IV and Edo Japan Investment
SEPTEMBER 29, 2015 – Yellow Point Equity Partners is pleased to announce the closing of its fourth private equity buyout fund (“Fund IV” or the “Fund”) and concurrent investment in Edo Japan (“Edo”), a fast-casual Japanese restaurant franchisor.
Fund IV has the same investment strategy as the first three Yellow Point funds, and accordingly will aim to build significant and sustainable growth businesses in partnership with outstanding management teams.
Edo, the Fund’s first investment, has over 100 locations across western Canada and a long track record of satisfying franchisees and satiating customers. For more than 35 years Edo has provided patrons with hot, fast and delicious food, prepared in a traditional Teppan-style. Edo is recognized for its popular dishes, including Sukiyaki Beef and Teriyaki Chicken, both of which are topped off with the signature Teriyaki Sauce. In addition to its signature dishes, Edo offers diverse meal choices including yakisoba noodles, udon soup, sushi and other delicious creations.
“When I sought out an equity partner a key goal of mine was to preserve Edo’s unique culture and way of doing business” said Tom Donaldson, CEO of Edo. “Yellow Point’s matching investment philosophy including their operationally-hands-off approach was a key factor in my decision to partner with them. As a result, our franchisees, employees and customers won’t notice any changes – we will continue to deliver great food with legendary service – but keep your eyes open for Edo restaurants opening in some exciting new locations!”
Brian Begert, Managing Partner of Yellow Point said “the Edo team has built a highly successful franchise which has achieved considerable growth over an extended period. We believe Edo is now poised to benefit from consumers’ increasing focus on tasty, healthy food which is delivered expediently. We are always looking for great businesses run by great people and are enthusiastic about our partnership with Edo which fits those characteristics very well.”
“We are pleased to have closed the Edo investment concurrently with the closing of Fund IV. We are actively looking for new investments, with a target of committing between $10 million to $35 million per investment in five to seven new companies in Fund IV over the next few years,” added Dave Chapman, Managing Partner of Yellow Point.
ABOUT YELLOW POINT
Yellow Point Equity Partners has been actively helping its management partners build better businesses for over 10 years. The firm invests in outstanding management teams of later-stage growth companies based primarily in western Canada and aims to be the long-term partner of choice for Canada’s leading mid-market companies. Yellow Point’s approach is supportive, hands-off with respect to day-to-day operations and active when it comes to strategic decisions and board work.
For more information, please contact us or visit www.ypoint.ca.
Brian Begert: 604-659-1892
Dave Chapman: 604-659-1894
Photo courtesy of Calgary Airport Authority