Fulcrum’s third fund (Fund III) acquired its interest in Nuheat in March 2008. During the course of its ownership, Nuheat expanded its market position by investing in new product development, increased adoption rates by investing in sales personnel, and initiated marketing and public relations activities typically not seen in the industry. Fulcrum also completed an add-acquisition for Nuheat that expanded its freeze protection product portfolio. Nuheat is headquartered in Vancouver, BC (www.nuheat.com).
Pentair (NYSE:PTR) is a diversified industrial company serving the food, water and energy industries. The company has approximately $7 billion in annual revenue. Pentair is headquartered in Worsley, UK with its main US office located in the Minneapolis suburb of Arden Hills, MN (www.pentair.com).
Fulcrum Capital Partners manages over C$675 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. Fulcrum Capital Partners was formed in 2011 as the successor to HSBC Capital (Canada) Inc. when current management acquired the private equity and mezzanine business of HSBC Bank Canada. The majority of Fulcrum’s eight partners have worked together for over a decade. During this period at Fulcrum and its predecessor firm, the partners have invested in 38 companies and realized 25 exits, generating a gross return on cash invested of 3.3x and a gross IRR of 28.7%. Fulcrum has offices in Vancouver and Toronto (www.fulcrumcapital.ca).
Fund III has made 11 investments and the sale of Nuheat represents the ninth fully realized investment in that fund. To date, Fund III has generated a return of three times invested capital.
Lazard Middle Market (www.lazardmm.com) was the exclusive financial advisor to Nuheat for this transaction.
2015 PEPD • Private Equity’s Leading News Magazine • 5-1-15