Showing posts with label CVCA Canadian Venture Capital Association. Show all posts
Showing posts with label CVCA Canadian Venture Capital Association. Show all posts

Private equity grew company at rate of return of 127%

Yellow Point’s investment in May 2005 generated an internal rate of return of 127% and a multiple of 8.5 times invested capital, when the company was sold to Tricor Pacific Capital in December 2009. David Chapman, Managing Partner of Yellow Point and Terry Holland, a co-investor in CCI and a Yellow Point LP, accepted the deal of the year honour at the CVCA's AGM Dinner in Toronto on Tuesday, September, 2010. Dave said:
“We are pleased with the successful sale of CCI Industries. The sale was truly a win-win for everyone involved. We would like to thank Bruce Clark and Norm Duplessis, co-founders of CCI, for the opportunity to partner with them on this investment. We would also like to thank Terry for his value-add contribution to the CCI board. But most of all, we would like to thank Martin Bates, CCI’s CEO, for his leadership, strategic guidance and stewardship of the business. We brought Martin in to lead the business shortly after our investment in 2005, and he did a phenomenal job growing the business and building value for all stakeholders. We are also pleased that CCI continues to be in very capable hands. Tricor is a class organization and will do great things in taking CCI to its next level of success.”
I agree that Tricor is a good private equity firm. Anna Rossetti is their professional CEO for PCI Cards and she is a firecracker.
About CCI Industries
Headquartered in Edmonton, Alberta, CCI Industries is the world’s largest producer of Allan Block garden, landscape and retaining wall systems and AB Fence products, having sold over 60 million square feet across Western Canada and Washington State. It is also Western Canada’s largest manufacturer of innovative and competitively-priced concrete masonry products having sold over 300 million square feet.
About Yellow Point Equity Partners
Yellow Point Equity Partners is a Vancouver-based private equity investment firm specializing in management buyouts and growth investments for mid-market companies. It invests in and partners with outstanding management teams of later stage private companies with the goal of building shareholder value over the long-term. It aims to be the partner of choice for management teams of Canada’s leading private companies.

CVCA Market Update

Fresh from the CVCA conference last week:
Market Update
PE deal activity has been crippled by significant expectation gaps between buyers and sellers and a lack of financing
- Current baseline LBO structure for a "middle of the fairway" business - EV: 5.0-6.0x EBITDA; Total debt: 2.0-2.5x EBITDA
- Shift towards smaller deals - Larger US sponsors are looking at equity tickets in the region of US$200m
- 2009 has seen positive inflows into leveraged loan and high yield funds marking a potential return to mainstream lending
- Increasing number of GP's are returning LP commitments and/or reworking terms - fundraising market is limited, although there is demand for distressed/turnaround funds
- Increasing number of mid market US sponsors looking North to Canadian carve outs and/or distressed situations
- 2007/2008 funds will make for some of the best vintages given unprecedented buying opportunities