Vertu Capital closes first non-public fairness fund with over $300 million 

Toronto-based non-public fairness agency Vertu Capital has introduced the shut of its inaugural fund with greater than $300 million CAD in capital commitments.

Vertu Companions Fund I is backed by an inventory of restricted companions (LPs) that features New York State Widespread Retirement Fund, BDC Capital, BMO Capital Companions, funds managed by BMO World Asset Administration, CIBC, EDC, Manulife Funding Administration, in addition to a number of undisclosed asset managers, household workplaces, and business executives.

Led by founder and managing accomplice Lisa Melchior, Vertu Capital seems to be Canada’s first non-public fairness agency based by a girl. Previous to launching Vertu Capital, Melchior spent 17 years at OMERS Non-public Fairness, the place she led the Ontario pension large’s North American expertise funding group as managing director.

The ultimate shut of Vertu Capital’s inaugural fund comes two years after its first shut, and takes place throughout a difficult interval for tech companies.

The ultimate shut of Vertu Capital’s inaugural fund comes two years after its first shut in March 2021, and takes place throughout a difficult interval for tech firms. Amid rising rates of interest, funding has turn out to be more durable to acquire and valuations of private and non-private tech companies have fallen. These are situations that might current alternatives for personal fairness buyers. As Melchior famous, “That is an thrilling time to be out there with new capital to deploy.”
 

At OMERS, Melchior’s work included main the pension fund’s investments in Toronto-based Constellation Software program, now one in every of Canada’s most precious software program firms, and Montréal’s Logibec, which OMERS took non-public earlier than spinning out its United States (US) subsidiary MatrixCare and ultimately promoting Logibec’s Canadian operations.

Melchior left OMERS in 2016, founding Vertu Capital the next 12 months. In 2018, Vertu Capital invested in Toronto funds firm Carta Worldwide utilizing accomplice capital. In 2019, in partnership with BDC Capital, Vertu Capital bought Toronto-based digital information room firm Firmex, funding this take care of third-party capital through a particular objective automobile.

Vertu Capital bought its curiosity in Carta to Vancouver FinTech Mogo in early 2021 in alternate for $24 million CAD price of Mogo inventory. Later that 12 months, Vertu Capital noticed what the agency claimed was its first exit when Firmex was acquired by US-based Datasite for an undisclosed sum.

RELATED: Firmex to be acquired by Datasite in Vertu Capital’s first exit

A Vertu Capital spokesperson advised BetaKit that the non-public fairness agency invests in software program and software-enabled firms centered on enterprise clients with $20 million or extra in annual income which might be breaking even or worthwhile. In line with the spokesperson, Vertu Capital goals to place in $25 million to $75 million per deal in firms price as much as $500 million and double or triple the scale of its enterprise earlier than promoting.

Thus far, Vertu Capital has accomplished two investments by means of Vertu Companions Fund I, backing Kitchener-Waterloo-based communications tech supplier Dejero Labs and Toronto’s PathFactory, an clever content material platform for B2B digital advertising. Vertu Capital goals to do one other 4 to 6 offers by means of its inaugural fund.

Characteristic picture courtesy Vertu Capital.