Peloton Capital Management has held a final closing of its first fund with C$550 million of capital.
Peloton was founded in November 2018 by Steve Faraone and Mike Murray, former managers of Ontario Teachers’ Pension Plan (OTTP), along with Stephen Smith, the chairman and CEO of First National Financial Corporation.
Institutional investors in Peloton’s new fund include Investment Management Corporation of Ontario, several large Canadian banks, as well as high net worth individuals and family offices.
Nearly 50% of Peloton’s new capital has already been invested in five portfolio companies that are active in the healthcare services and financial services sectors. “The investments we’ve made to date – of which three were closed amid the pandemic – are all performing well,” said Mr. Faraone. “We are very pleased with the investment partnerships we have already consummated, and several more attractive opportunities are currently being evaluated.”
Peloton’s five portfolio companies include 123Dentist, a Vancouver and Toronto-based provider of dental office support services (June 2019); P3 Veterinary Partners, an Oakville, Ontario-based provider of veterinary hospital support services (December 2019); Fertility Partners, a Toronto-based provider of support services to IVF and prenatal practitioners (July 2020); Glass Lewis, a San Francisco-based provider of governance services to pension plans, mutual funds, and asset managers (March 2021); and Edgewood Health Network Canada, a Toronto-based provider of mental health and addiction services (April 2021).
Toronto-headquartered Peloton invests in Canadian and US-based companies that have from $10 million to $40 million of EBITDA and are active in the financial services, healthcare and consumer sectors. The firm expects its Fund I portfolio to be comprised of 7 to 10 platform companies with hold periods ranging from 8 to 12-years.
“Our differentiated strategy and approach to investing has proven to be quite powerful in the market. It has enabled us to attract world-class investors in the fund and it has positioned us as an attractive partner to the founders of the companies we are investing in,” said Mr. Murray.
Messrs. Faraone and Murray worked together for more than a decade at OTPP where they were active in the development of the firm’s direct private equity program and held responsibility for three – healthcare, consumer and financial services – of the firm’s six target industry verticals.
© 2021 Private Equity Professional | July 13, 2021