CAI Capital Closes Its Third Private Equity Fund
Toronto, October 1 - CAI Capital Management Co. and its related companies ("CAI") announce the final closing of CAI Capital Partners and Company III, L.P. and CAI Partners and Company III, L.P. (together "CAI III"), a $375 million investment fund targeted at private equity investment opportunities in Canada and the United States.
CAI III represents the third private equity fund for CAI. Backed principally by institutional investors in Canada and the United States, CAI III almost doubles the size of CAI's previous fund, making it one of the largest independent private equity funds in Canada.
According to CAI partner Peter Restler: "Many private companies today are in need of equity and equity-linked capital to finance management buyouts, restructurings, recapitalizations, acquisitions and capital expansion. CAI believes the outlook for investing its third fund is excellent and is looking forward to deploying its newly raised capital."
CAI III seeks opportunities to invest $20 million to $75 million in companies with enterprise values ranging from $50 million to more than $500 million. In certain situations, CAI's limited partners, which include some of Canada's largest pension funds, may co-invest with CAI, significantly increasing the amount of capital that can be committed to a single transaction.
Investment opportunities to be considered include companies seeking capital to fund expansion, owners seeking partial or full liquidity, recapitalization of over-leveraged businesses, turnaround situations and companies seeking to spin out non-core business units.
CAI's second fund has been one of the top performers in North America among private equity funds raised during 1998 - 1999, according to statistics published by The Deal, a newsletter focused on the venture capital and private equity markets. The second fund's investment performance ranks within the top 10 per cent of the private equity firms included in the survey. Investments have been made in six companies, three of which have been sold. Investors have already received back approximately 114 per cent of the capital drawn down to date, one of the best records in the industry.
"Despite a difficult fund raising climate, 100 per cent of the Canadian institutional investors who participated in CAI's second fund returned to invest in CAI III, and virtually all recommitted for significantly larger amounts. We are deeply appreciative of the support and confidence our investors have shown in us through the years," said CAI partner Manfred Yu. Over 75 per cent of CAI III's funding is from Canadian sources.
CAI's success has benefited from the participation of a group of approximately 40 "Special Investors." These are leaders from business, government and academia who have invested in CAI III and assist CAI in identifying and investigating attractive investment opportunities, and in improving investment performance.
Founded in 1990, CAI has directly invested or placed with co-investors over $625 million in equity or equity-related investments, primarily in Canadian companies, through its two prior funds. CAI has offices in Toronto, Montreal, Vancouver and New York.
For more information about CAI and its portfolio of companies, please visit CAI's website, www.caifunds.com.
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Contact:
CAI Capital Management Co.
Mr. Manfred Yu, Partner
(416) 306-9893
myu@caifunds.com
www.caifunds.com