Penfund

About

Founded in 1979, Penfund is Canada’s oldest independent private equity firm. Since our founding, we have invested more than $2.4 billion in over 200 mid-market companies across North America. Our current focus is investing Penfund Capital Fund V.
We operate as a specialty lender and an equity investor and seek to invest in companies that satisfy the following criteria:
• Clearly defined, focused business strategies
• Competent, in-place management teams
• Entrenched market positions
• Operating in stable markets
• Generating superior returns on capital and high and stable free cash flow
Investee companies will typically generate annual EBITDA of at least $10 million and annual revenue of at least $40 million.
We do not invest in operational turnarounds, real estate, natural resources, high technology or start-ups.
We invest in a wide range of industries but have a particular focus on the following sectors:

Consumer
• Pet products and services
• Auto aftermarket
• Craft beer
• Food processing

Business Services
• Waste management
• Industrial distribution

Health Care
• Outpatient providers
• Distributors
• Home care providers

Source: Penfund

Strategy

Penfund is a private equity firm specializing in investments in recapitalizations; refinancing; ownership reorganizations; shareholder liquidity including distributions and partial business sales; strategic acquisitions; management buyouts; leverage buyouts; organic growth; reorganizations; growth capital; mature; and middle market companies.

The firm does not invest in start-ups, operational turnarounds, real estate, natural resources, high technology, and in sectors that are dependent on commodity prices. It seeks to provide lending products including private high yield debt; junior capital; mezzanine debt; control and minority equity; bridge facilities; standby lines; underwritten facilities; second lien debt; secured and unsecured mezzanine debt; unitranche facilities; underwritings of senior and junior debt; guarantees; and credit enhancement through financial guarantees. It seeks to invest in established private and public businesses in all sectors. It typically invests in the consumer and business services sectors.

Within the consumer sector, the firm focuses on pet products and services, auto aftermarket, restaurants, food processing, and post secondary education. Within the business service sector, it focuses on waste management and industrial production. The firm seeks to invest in companies based in North America.

Within the waste management sector, it invests in companies based in North America that focus on collection and processing of non-hazardous solid waste, having a junior capital requirement between CAD $10 million ($9.92 million) and CAD $50 million (49.64 million), and a run-rate EBITDA of at least CAD $5 million ($4.99 million). Within the industrial distribution sector, it focuses on companies with an EBITDA of at least CAD $8 million ($7.98 million) based in North America, including products that require customization, fabrication or have a high degree of technical content including power transmission; hoses, belts, pumps and accessories; fluid power; and fasteners and small tools.

Within post secondary education industry, the firm focuses on non-distressed companies with an EBITDA of at least CAD $5 million ($4.99 million) with a junior capital requirement of at least CAD $10 million ($9.92 million), based anywhere in North America especially in areas with growing populations and strong job markets. Within the restaurant industry, the firm invests in companies with an EBITDA of at least CAD $5 million ($4.99 million) and junior capital requirement between CAD $15 million ($14.97 million) and CAD $75 million ($74.8 million) with locations in multiple markets.

It invests in franchisors, company-owned chains and master franchisees with territorial exclusivity located anywhere in North America with a focus on the United States and Canada, ideally in areas with favorable economic conditions and growing populations.

Source: Penfund


  • Industry Focus
    Healthcare and Business Services
  • Year Founded
    1979
  • Address
    Bay Adelaide Centre
    333 Bay Street, Suite 610
    Toronto, Ontario
    M5H 2R2
  • Key Personnel
    John Bradlow, Partner
    Richard Bradlow, Partner
    Adam Breslin, Partner