Novacap has closed its latest private equity fund at its hard cap of $840 million. The fund is the largest private equity fund in Canada focused on the technology, media, and telecom (TMT) sector. The fund surpassed its target goal by 40%.
Investors in the fund include public and corporate pension funds, insurance companies, endowments, foundations, family offices, and individual investors across Canada, the United States, Europe and Australia.
“We are delighted by the support we have received from our existing long-term investors and welcome several new international investors to the Fund,” said Pascal Tremblay, President and Managing Partner of Novacap TMT. “The closing of the Fund comes at a period of significant activity for Novacap, both in terms of new investments and add-on acquisitions. TMT V will continue to execute Novacap’s core strategy of investing in established mid-sized TMT companies in Canada and the United States.”
Since its establishment in 1981 Novacap has raised over over $2.6 billion, with $2.26 billion in assets under current management. This latest fund will make equity investments of $20 million to $100 million in a broad spectrum of technology and technology-enabled industries with a focus on software, business and financial services, internet infrastructure, e-commerce, and industry-specific technology solutions in the energy, healthcare and other vertical markets. The TMT fund will invest in those companies with revenue ranging from $30 to $300 million.
The fund will be led by its partners Pascal Tremblay, Stéphane Tremblay, François Laflamme, Ted Mocarski, Étienne Veilleux and Yong Kwon, and supported by an investment team with extensive experience in the TMT sector.