View online
 
 
 
PE Hub
 
 
 
Canada Wire
 
August 30, 2021
 
 
 
 
Brookfield set to raise most of sixth PE fund’s $12.5bn target, Mubadala Capital buys Canada Cartage, real estate tech startup Properly nabs $36m of VC
 
 
 
 
Happy Monday!

Lion’s share: Brookfield Asset Management will soon bring in most of the target for its latest flagship buyout offering as part of a record run of fundraising, I wrote this week for a Buyouts story.

The firm is “finalizing” an initial close for Brookfield Capital Partners VI at US$8 billion, CFO Nicholas Goodman said in a second-quarter 2022 earnings call. It is doing the same for Brookfield Infrastructure Fund V, which is slated to capture US$20 billion.

With US$8 billion in the bank, Brookfield Capital Partners VI would have 64% of its US$12.5 billion target. The vehicle could secure as much as US$15 billion, sources told Buyouts last year, with the GP likely to pony up US$3 billion to US$4 billion. The private equity group, headed by Cyrus Madon (pictured above), wrapped up Fund VI’s predecessor in 2019 at US$9 billion.

The announcement of imminent closes for Brookfield’s buyout and infrastructure offerings came with news of robust capital raising across a mix of strategies. The firm saw “record inflows” of US$56 billion, Goodman said, US$41 billion during Q2 2022 and US$15 billion after the quarter’s end. Highlights included US$15 billion collected by a debut energy transition fund.

All this suggests the US$750-billion Brookfield is faring surprisingly well in a challenging fundraising market, especially for private equity. PE fundraising in North America, for example, fell 18% year over year in the first half, according to Buyouts’ data (see below).

In reply to a question on the topic, CEO Bruce Flatt said, “tougher times always mean consolidation of every business.” In this environment, LPs “cut their relationships down and usually the large, diverse, scaled professional managers get capital” while some others do not. “Luckily,” he said, “we’re on the positive side of that.”

In the earnings call, Brookfield also announced major leadership changes tied to its plan to spin-out an US$80 billion asset management unit. The changes, which include “advancing younger executives as fast as we can,” Flatt said, seem to anticipate long-term succession events.

Following the spin-out, Brookfield Asset Management, which will own 75% of the new unit, will be renamed Brookfield Corp. Flatt will remain its CEO, with Goodman appointed president and CFO. The adjacent Brookfield Reinsurance will continue to be led by Sachin Shah.

Flatt will also be CEO of the freshly separated asset manager, with Connor Teskey appointed president, and Mark Carney, the one-time Bank of England and Bank of Canada governor, appointed chair.

In addition, there will be senior changes in the PE group. Madon, a nearly 25-year veteran of Brookfield, will stay on as CEO, but will be joined by Anuj Ranjan as president. Ranjan, hired in 2006, is currently head of private equity for Europe, the Middle East and Asia and head of business development. Subscribers can read my Buyouts’ story here.

Canadian VC deal of the week: Properly, a Toronto-based technology-enabled real estate brokerage, this week announced it secured $36 million in financing. The round, which comes a year after a $44 million Series B led by Bain Capital Ventures, had a host of investors. They included Bain as well as Parker89, Prudence, FJ Labs, Golden Ventures, Intact Ventures, Max Ventures, AlleyCorp, Interplay and Industry Ventures. The company said it has raised a total of $192 million.

Founded by CEO Anshul Ruparell, CTO Craig Dunk and COO Sheldon McCormick, Properly has developed a platform that facilitates easier and more efficient home buying and selling. Since launching in summer 2020, it has supported more than $1 billion in transactions. See Venture Capital Journal’s news brief here.

Canadian PE deal of the week: Canada Cartage, a Mississauga, Ontario-based provider of trucking services and and warehouse solutions through a network of 33 domestic facilities, was 15 years ago taken private by Nautic Partners for about US$173 million. In the PE world, that is a very long period of ownership. This week, it was announced that the US private equity firm had agreed to sell the business to Mubadala Capital, the asset management arm of Abu Dhabi’s Mubadala Investment Company.

In a statement, Adib Martin Mattar, head of private equity at Mubadala Capital, hinted at why his firm wants to own Canada Cartage. Among other things, he said, “the events of the last two years have reinforced how important it is to effectively manage the supply chain, for companies as well as consumers.” Check out PE Hub’s news brief here.

 
 
 
Top Scoops
 
Slower capital raising: Fundraising by North American private equity firms dipped in this year’s first half, as proliferating products in a crowded marketplace met with reduced supply due to over-allocated LPs, I wrote for a Buyouts story this week. A total of 417 buyout, venture capital and other PE vehicles secured nearly US$255 billion in H1 2022, according to Buyouts’ data, down 18% from a year earlier.

Capital raising also declined on a quarter-over-quarter basis. Between April and June, funds brought in almost US$115 billion, off by 18% from January through March. These results confirm a slower pace of market activity in 2022, suggesting GPs may be experiencing longer fundraising timelines, delayed fund launches and related impacts. Subscribers can read my Buyouts’ story here.

Dodging the bullet: GPs breathed a sigh of relief this week after US Democrats nixed their plan to close the so-called loophole for carried interest, Venture Capital Journal’s Lawrence Aragon and Alex Lynn wrote this week. But, as this issue has been off and on the table for more than a decade, you can be certain this won’t the last we hear of it, they said.

Raising the tax on carried interest would have been a major blow to venture capital and other PE firms, Aragon and Lynn wrote. They cited last year’s Private Equity International survey of 90 fund managers and lawyers, which found just over 80% of respondents saying taxing carry as income would negatively affect their operations. Subscribers can read Venture Capital Journal's story here.

That’s it. Have a great day! Please get in touch with me with your feedback, story ideas, tips, etc., at kfalconer@buyoutsinsider.com or find me on LinkedIn .
 
 
 
 
VC News
 
 
 
 
Angel Host raises $5.2m in White Star-led seed financing
Montreal-based Angel Host, a data-driven, technology-enabled rental-maximization company, has secured $5.2 million in seed-stage financing. More...
 
Venture-backed Top Hat buys Morton Publishing Company
Top Hat has acquired Morton Publishing Company, an Englewood, Colorado-based publisher of course materials for science disciplines. More...
 
National Bank invests C$103m in fintech startup Flinks
National Bank of Canada has invested C$103 million, including C$30 million in growth capital, in Flinks, a Montreal-based financial technology startup. More...
 
Omnillion brings in C$25m via Series A financing
Toronto-based Omnillion, a cloud and global data network for app developers, has secured C$25 million in a Series A financing. More...
 
Plant-based proteins company TMRW scores seed VC
TMRW Foods, a Vancouver-based producer of plant-based proteins, has closed a seed-stage financing, raising C$2.6 million. More...
 
Creator marketing platform #paid takes in $15m Series B
Toronto-based #paid, a creator marketing platform that connects brands with content creators, has secured $15 million in Series B financing. More...
 
Venture-backed Semios acquires Australia’s Agworld
Vancouver-based Semios, a precision farming platform for permanent crops, has acquired Perth, Australia's Agworld, a data-driven farm management company. More...
 
Appili Therapeutics strikes funding deal with The Lind Partners
Halifax, Nova Scotia-based Appili Therapeutics, an infectious disease biopharmaceutical company, has collected C$3.5 million in a convertible security financing agreement. More...
 
Figment collects $50m Series B led by Senator, Liberty City
Toronto-based Figment, a blockchain infrastructure technology and services provider, has raised $50 million in a Series B financing. More...
 
Green tech startup Viridis Terra raises $2.5m in seed funding
Quebec City-based green technology company Viridis Terra has secured $2.5 million (C$3.25 million) in seed-stage financing. More...
 
Smart property manager Plentific snaps up $100m Series C
Plentific, a platform for smart property management, has raised $100 million in Series C funding. More...
 
Shared mobility startup Plentywaka nabs seed financing
Toronto-based shared mobility startup Plentywaka has secured $1.2 million in seed-stage financing. More...
 
Bitcoin infrastructure company Blockstream snags $210m
Victoria, British Columbia-based bitcoin infrastructure company Blockstream is with its latest financing joining a slew of Canadian technology enterprises that have reached billion-dollar valuations during the pandemic, the Globe and Mail reported. More...
 
Conexus agtech fund brings in C$45m of $60m target
Conexus Venture Capital has launched a second venture capital fund focused on Canadian agriculture technology and agribusiness innovation. More...
 
GrowthGenius secures C$2.3m in funding from FirePower
GrowthGenius, an Toronto-based all-in-one sales automation platform, has raised C$2.3 million in funding. More...
 
 
 
PE Deals
 
 
 
 
Oaktree Capital invests in Environmental 360 Solutions
Oaktree Capital Management has invested in the growth of Environmental 360 Solutions, a Toronto-based provider of environmental and waste management solutions. More...
 
Toshiba in talks with PE firms on strategic options: Reuters
Toshiba Corp is in talks with at least four private equity firms, including KKR & Co and Blackstone, to seek their ideas for its new strategy, Reuters reported. More...
 
Thoma Bravo-backed PDFTron acquires Solid Documents
PDFTron Systems has acquired Nelson, New Zealand's Solid Documents, a developer of document reconstruction and archiving software. More...
 
Brookfield gains more than two-thirds interest in Inter Pipeline
Brookfield Infrastructure Partners has taken up and paid for Inter Pipeline shares tendered as of August 20, bringing its total interest to 68.7 percent. More...
 
Stone Point-backed Lone Wolf acquires Propertybase
Lone Wolf Technologies, backed by Stone Point Capital, has acquired Propertybase, a Boulder, Colorado-based provider of real estate and mortgage software solutions. More...
 
Onex invests in TA-backed Wealth Enhancement Group
Canadian private equity firm Onex Corp has made an equity investment in Wealth Enhancement Group, a Minneapolis-based wealth management firm. More...
 
PE-backed WeCommerce acquires Archetype Themes
WeCommerce Holdings has acquired the assets of Archetype Themes, a Toronto-based designer of online store templates for Shopify merchants. More...
 
Men’s underwear brand SAXX secures investment from TZP
TZP Group has made an investment in SAXX Underwear Co Ltd, a Canadian men's underwear brand. More...
 
PE-backed Hub to acquire National Home Warranty Group
Hub International has agreed to acquire the assets of Western Canada-based National Home Warranty Group, a subsidiary of Aviva Canada. More...
 
CareRx closes buy of Medical Pharmacies’ LTC pharmacy unit
CareRx Corp has closed its acquisition of the long-term care pharmacy division of Medical Pharmacies Group, a portfolio company of Clearspring Capital Partners. More...
 
Spark Infra agrees to $3.7bn buyout by KKR-led group: Reuters
Australia's Spark Infrastructure Group has agreed to a $3.71 billion takeover by a consortium that includes KKR & Co and two Canadian pension funds. More...
 
PS Logistics’ TA Services acquires Scout Logistics Corp
TA Services, an affiliate of PS Logistics, has acquired Scout Logistics Corp, a Toronto-based specialist in over-the-road transportation of perishable freight. More...
 
Birch Hill-backed CCM Hockey acquires base layer license
Montreal-based CCM Hockey, a portfolio company of Birch Hill Equity Partners, has acquired a worldwide base layer license from its licensing partner Icon-Elite Group. More...
 
GCM Grosvenor to buy stake in Novacap-backed Horizon
GCM Grosvenor has agreed to acquire a stake in Horizon, a Columbus, Ohio-based fiber-optic broadband company. More...
 
Breakwater makes control investment in Matcon Group
Breakwater Management has made a control investment in Coquitlam, British Columbia-based Matcon Group of Companies. More...
 
CVC acquires RiverStone International from Fairfax, OMERS
CVC Capital Partners has closed its buyout of RiverStone Europe from Fairfax and OMERS. More...
 
 
 
IPOs
 
 
 
 
 
 
Credit
 
 
 
 
 
 
Firms and Funds
 
 
 
 
Harrison Street holds first close of new Canada-focused fund
Harrison Street has held the first close of a new fund that will invest in senior living, student housing, medical office, life sciences, storage and digital assets in Canada. More...
 
 
 
People Moves
 
 
 
 
To update your PE Hub email preferences, or to unsubscribe, click here.