Novacap Closes USD $1.865 Billion Fund

Based on the south shore, one of the countries longest-operating private equity firms has announced the creation of its largest ever fund, TMT VI, at nearly CAD $2.4 billion.

The announcement comes on the heels of Nuvei’s recent IPO last fall. Novacap’s initial investment of $300 million in Nuvei is now worth more than $2.7 billion today according to the Globe and Mail (TSX:NVEI.TO). Nuvei was the largest ever IPO of a Canadian technology company, with a current market capitalization of CAD $10.3 billion. Novacap has also celebrated its recent exits of Intelerad and PKWare.

Due to Novacap’s impressive returns of late, demand was so strong for this fund that it was oversubscribed by nearly a 2-to-1 margin, having been initially planned as a fund of USD $1 billion. Investors in the new TMT VI include sovereign wealth funds, public and corporate pension plans, insurance companies, endowments, foundations, family offices and many others. The Globe’s report explains that about 70% of the backers for the new fund are from outside Canada.

“We are extremely gratified for the opportunity to partner with such a prominent group of investors from around the globe,” said Pascal Tremblay, President, CEO and Managing Partner of Novacap. “The successful closing of TMT VI continues the strong momentum in all our verticals: TMT, 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, TMT VI will seek to invest in growing, market-leading businesses led by talented entrepreneurs seeking a value-added partner to accelerate growth.”

The Fund will continue to pursue Novacap’s previous strategy for its TMT funds (Technology, Media and Telecommunications). That is, investments in profitable technology and technology-enabled businesses. Sectors of interest include software, business services, internet infrastructure, and e-commerce, including solutions in the energy and healthcare markets. TMT VI will be led by partners Pascal Tremblay, Stéphane Tremblay, François Laflamme, Ted Mocarski, Eric Desrosiers, and David Lewin.


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