Wellington Financial, a specialty finance firm providing growth capital to Canadian and U.S.-based companies, has held a final close for Wellington Financial Fund IV at its hard cap of $200 million in re-circulating equity commitments from several Canadian institutional investors.
The new fund will continue the firm’s strategy of investing in both public and private companies with a demonstrated customer base and a minimum of $5 million in trailing revenue.
“In this difficult fundraising climate, we are honored to have hit Fund IV’s hard cap of $200 million in re-circulating equity commitments,” said Mark McQueen, Wellington Financial’s President and Chief Executive Officer. “This capital base positions our firm to provide entrepreneurs across North America with up to $600 million of growth capital over the next few years.”
Wellington’s prior fund, raised in 2006, was capitalized with $150 million of re-circulating institutional equity commitments. That fund led over $300 million of financings via 50 loans over its life. Fund III limited partners earned a profit in every fiscal quarter during the six- year investment period and achieved a GAAP internal rate of return in excess of 9.0%, net of all fees and expenses.
“The track record of Fund III speaks to the success of the clients that we’ve had the pleasure to serve over the past 12 plus years,” said Ken Rotman, Chairman of Wellington Financial. “The institutional limited partnership community recognizes our alignment of interests, which is why Wellington is one of the few innovation-focused funds to hit its ‘hard’ fundraising cap over the past five years.”
Along with the closing of Fund IV, Wellington Financial has hired Vikram Gupta as a new Partner and Head – Western U.S.A. Region. Mr. Gupta joins Wellington with 14 years of experience financing high-growth technology businesses as both an equity investor and lender. Prior to joining Wellington, Mr. Gupta was with Western Technology Investment, JPMorgan Partners and Credit Suisse First Boston.
“I am excited to join the Wellington Financial team,” said Mr. Gupta. “Wellington’s unique product offering, commitment to high-growth businesses and strong reputation with entrepreneurs and equity investors alike makes the firm an ideal partner for VC-backed companies. I look forward to further enhancing Wellington’s presence in the U.S. market as we continue to target the most promising innovation businesses.”
Wellington Financial is a privately-held specialty finance firm providing term, venture and amortizing loans up to $30 million. Wellington Financial is currently managing a $600 million investment program and is managed by a partnership controlled by fund management and Clairvest Group who jointly have contributed a large financial stake to the firm. Limited partners include several of Canada’s largest institutional investors, pension funds, family offices and crown corporations. Wellington Financial has offices in Toronto and Santa Monica (www.wellingtonfund.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 4-4-13