Novacap Closes its Largest Fund

Novacap has closed Novacap TMT VI LP (Nova VI) with just over $1.8 billion of capital. The new fund is the largest ever raised by Novacap. Nova VI was significantly oversubscribed and beat its target of $1 billion.

Novacap’s earlier fund (Nova V) closed at its hard cap in November 2019 with $840 million of capital. According to the team at Novacap, virtually all limited partners in Nova V committed to Nova VI. Novacap’s latest fund added numerous new investors from the US, Europe, Asia and the Middle East including sovereign wealth funds, public and corporate pension plans, insurance companies, endowments and foundations, family offices and advisory firms.

“We are extremely gratified for the opportunity to partner with such a prominent group of investors from around the globe,” said Pascal Tremblay, the president, CEO and managing partner of Novacap. “The successful closing of Nova VI continues the strong momentum in all our verticals including technology, media, and telecommunications; industries; and financial services. The Novacap franchise has never been stronger, and we are grateful for this momentum as we enter our fifth decade. Just as we have done throughout our history, Nova VI will seek to invest in growing, market-leading businesses led by talented entrepreneurs seeking a value-added partner to accelerate growth.”

The activities of Nova VI are led by Mr. Tremblay, Stéphane Tremblay, François Laflamme, Ted Mocarski, Eric Desrosiers, and David Lewin.

Recent transactions closed by Novacap include the sale last month of Intelerad Medical Systems, a Montreal-based provider of medical imaging software and workflow services, to HgCapital, a UK-based private equity firm. Intelerad was acquired by Novacap in 2016 through its fourth fund. In September 2020, Novacap took public Nuvei Corporation, a Montreal-based provider of electronic payment technologies and services. Nuvei was acquired by Novacap in 2017 through its fifth fund. At the time of its offering, Nuvei was the largest ever IPO of a Canadian technology company, with a market capitalization of just over C$10 billion.

Prior to Nuvei, in May 2020, Novacap sold Milwaukee-based PKWare, the creator of the .ZIP file format and a provider of encryption and data compression software and services, to Thompson Street Capital Partners. PKWare was acquired by Novacap in 2009 through its third fund.

With the closing of Nova VI, Novacap now has C$6 billion in assets under management and the firm continues to make control investments in technology and technology-enabled businesses that are active within the software, business services, internet infrastructure, e-commerce, energy and healthcare sectors.

Credit Suisse Securities (USA) was Novacap’s advisor and placement agent for the raising of Nova VI.

Novacap was founded in 1981 and has offices in Toronto, and near Montreal in Brossard, Quebec.

© 2021 Private Equity Professional | February 18, 2021

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