CAI Investors Appear to be a Happy Group
 |
All Second Fund participants reloaded for third Financial Post, Thursday, October 2, 2003
|
Judging from the success enjoyed by CAI Capital Management, interest in private equity remains strong.
This week, the firm closed a $375-million fund, which is targeted at private equity investments in North America. That fund is the third that CAI has raised. In total, the other two raised about $380 million. Given investors can co-invest with the fund, that $380-million of commitments has been turned into $625-million of investments.
Indeed, it seems that CAI - which seeks opportunities in the $20-million to $75-million range - has a happy group of investors. All the Canadian institutional investors from the second fund reloaded for the third fund.
"We didn't start this to amuse ourselves," said David Culver, the former chief executive of Alcan, who along with Richard Schmeelk, a former senior executive with Salomon Bros., formed CAI in 1990.
"We hope to be around for 50 to 100 years," added Culver, who is 78 years old.
Over the years, CAI has had a number of big wins, including Livingston International, a customs broker that is now an income trust, and MacDonald Detwiller & Associates, which uses satellite technology to sell land-based information systems, services and products.
But Country Style Food Services hasn't been a big winner, though Culver said after recent management changes, the company is doing much better.