Novacap Announces Final Closing Of Canada’s First PE Fund Specializing In The Financial Services Industry

MONTREAL, QC, September 30th, 2021 – Novacap, a leading North American private equity firm, today announced the final closing of the firm’s very first fund dedicated entirely to financial services. The fund raised an astounding C$417 million from institutional investors, family offices and high net worth investors.  Trans-Canada Capital, one of the country’s leading investment management firms, acted as the lead investor.

Novacap’s Financial Services’ team applies Novacap’s time tested investment and partnership approach to help companies in various sectors of the financial services industry accelerate growth and create value.  The fund focuses on mid-sized North American companies, primarily in Canada, operating in a range of sectors including financial infrastructure, specialty insurance and distribution, asset and wealth management, and alternative lending.

The Fund has already started delivering on its strategy, through investments in four platform companies: Accurate group, a real estate technology services leader, AGA, a group benefits advisory and third-party administration firm, GroupAssur, a P&C MGA specializing in custom commercial insurance products and Optiom, a provider of vehicle replacement coverage. To date, the Fund has made seven add-on investments to execute on its growth strategy within these portfolio companies.

“Driven by a strong demand from Canadian entrepreneurs looking for growth capital and specialized expertise in the financial services industry, Novacap is proud to have deployed such a specialized fund, dedicated entirely to the financial services sector— the first of its kind in Canada,” said Marcel Larochelle, Managing Partner of Novacap Financial Services. “We are highly confident in this focused strategy and our ability to help our entrepreneurs realize the full potential of our portfolio companies by helping them execute their growth plan’’.