Peloton Capital Management (PCM), a Canadian private equity firm with a long-term approach to middle-market buyouts in the North American market, has closed its first fund at USD550 million.
The Investment Management Corporation of Ontario (IMCO), an Ontario public fund manager with USD73.3 billion of assets under management, has invested in the fund alongside Canada’s largest banks and Stephen Smith, Chairman, CEO, and co-founder of First National Financial Corporation and Chairman of PCM. In addition, several institutional investors, high net worth individuals and family offices have also made commitments to the fund.
Since the firm’s inception and launch of its first Fund, PCM has invested nearly 50 per cent of the committed capital across five fast-growing and market-leading companies in the healthcare services and financial services sectors.
“The investments we’ve made to date – of which three were closed amid the pandemic – are all performing well,” says Steve Faraone, Managing Partner at Peloton Capital Management. “We are very pleased with the investment partnerships we have already consummated, and several more attractive opportunities are currently being evaluated.”
Differentiated approach to investments
Unlike many middle-market private equity firms that take a short-term, generalist approach to investing, PCM differentiates itself through its long-term capital and orientation; deep sector expertise and focus on financial services, health care, and consumer markets; and relationships-first philosophy.
“Our differentiated strategy and approach to investing has proven to be quite powerful in the market. It has enabled us to attract world class investors in the fund and it has positioned us as a very attractive partner to the founders of the companies we are investing in,” says Mike Murray, Managing Partner at Peloton Capital Management.
PCM aims to build a concentrated portfolio of 7 – 10 platform investments from this first fund, focusing on well-established, profitable companies that have USD5 million to USD40 million of EBITDA and present compelling opportunities to build long-term, sustainable value.
Prioritising ESG in alignment with PRI
Since its inception, PCM has prioritized environmental, social, and corporate governance (ESG). In support of this philosophy, the firm recently signed the Principles of Responsible Investing (PRI) and will report annually on activities related to the integration of PRI and ESG within its portfolio. PRI is a voluntary and aspirational set of investment principles developed by investors, for investors, with the goal of developing a more sustainable global financial system.