Signal Hill Equity Partners has closed its fourth private equity fund, Signal Hill Equity Partners IV LP, and its parallel international partnership (together Fund IV), with C$200 million of capital commitments.
Signal Hill’s earlier fund, Signal Hill Equity Partners III LP, which also used a parallel international partnership structure, held an oversubscribed and above target close in May 2015 with C$142 million of capital commitments. The firm’s second fund closed in 2008 with C$100 million in capital commitments.
Unlike many other private equity funds, the limited partners of Fund IV have agreed to a 20-year term for the fund compared to the traditional 10-year life. Limited partners in the new fund include family offices, high-net-worth private investors, and some of the largest institutions in Canada.
“The overwhelming demand to participate in our twenty-year fund is a testament to the success that we have enjoyed making investments that are focused on long-term value creation,” said Jamie Johnson, the CEO of Signal Hill. “Once we understand the important drivers critical to a business, we want to leverage our knowledge and continue to invest and build an enduring business alongside management while letting our capital compound.”
Toronto-headquartered Signal Hill invests from $5 million to $20 million of equity in companies with enterprise values of $20 million to $50 million. Sectors of interest include regulated and essential services.
A recent transaction for Signal Hill was the November 2021 add-on acquisition by Urban Life Solutions (ULS) of Forest Ridge Landscaping, a Toronto-based provider of year-round lawn and landscape maintenance, snow and ice management, and other related outdoor property services. ULS was acquired by Signal Hill in November 2020 when its provided equity to support the merger of Calgary-headquartered Urban Life Solutions, Ottawa-based P. Munro Group, and Ottawa-based John Sweeping.
Today, ULS is one of the largest outdoor maintenance companies in Canada with more than 600 employees and operations in Alberta, Saskatchewan, Quebec, and Ontario. The company provides municipalities, governments, and commercial clients with snow and ice management, landscape maintenance, outdoor space enhancement, garbage collection, tree planting, street sweeping, asphalt maintenance, and vehicle recovery services. ULS goes to market under the Urban Life Solutions, ULS Maintenance & Landscaping, City Wide Towing & Recovery Services, P Munro Group, John Sweeping, GrassChopper, and Forest Ridge brands.
© 2022 Private Equity Professional | September 7, 2022
