March 16, 2021
Quebec private equity firm Novacap has closed its largest ever fund, raising $1.865 billion USD ($2.37 billion CAD). This is the firm’s sixth fund specializing in technology, media and telecommunications (TMT) companies.
Nuvei is largely to thank for the fund’s success. The electronic payment processing company closed its initial public offering in September, which was the largest tech IPO in Canada. Novacap had invested under $300 million USD in Nuvei for a stake that is now worth over $2.7 billion USD. This investment resulted in Novacap’s largest return to date.
The new fund, entitled Novacap TMT VI, is more than double the size of its second-largest fund, which raised $940 million USD in 2019 for industrial companies. It also drastically outperformed its last TMT fund, which raised $840 million USD in 2017. Novacap TMT VI follows the strategy of Novacap’s previous TMT funds by focusing on control growth investments in profitable technology and technology-enabled businesses.
Author: Brennan Caldwell