VANCOUVER, April 21 /CNW/ - HSBC Capital (Canada) Inc., a leading Canadian private equity firm in the mid market, announced the closing on March 31, 2010 of the first tranche of its fourth private equity fund: Private Equity Fund 2010 ("PEF 2010"), a C$200 million buyout fund.
PEF 2010 will focus on acquiring, managing and developing privately-held companies with capable, committed and invested management teams that operate across a range of industries including services, manufacturing and distribution. The equity investments of PEF 2010 will range from C$5 million to C$25 million in businesses with an enterprise value of C$10 million to C$150 million. The fund will operate primarily in Canada but may also consider opportunities in the United States. PEF 2010 will follow the same strategy as PEF 2005, a C$140 million private equity fund that closed in 2005.
Dave Mullen, CEO of HSBC Capital (Canada) Inc., said: "We are pleased to have achieved a first closing of $160 million in view of market conditions over the past two years. We appreciate the confidence of HSBC Bank Canada and of our new and existing institutional investors. Their strong participation in the first closing will permit us to move forward to select and support a new portfolio of companies."
A second closing for the balance of the unsubscribed capital in PEF 2010 is anticipated prior to year end.
HSBC Capital (Canada) Inc. is the merchant banking subsidiary of HSBC Bank Canada and manages over C$450 million of capital with a mandate to provide equity as well as mezzanine and bridge debt to mid-sized businesses. These investments typically support management buyouts, acquisitions, going private transactions, leveraged buyouts, corporate growth, financial restructurings, and project and property financings. HSBC Capital (Canada) Inc. has offices in Toronto, Vancouver, Edmonton and Calgary.
HSBC Bank Canada
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, has more than 260 offices, including over 140 bank branches. With around 8,000 offices in 88 countries and territories and assets of US$2,364 billion at 31 December 2009, the HSBC Group is one of the world's largest banking and financial services organizations.
SOURCE HSBC Bank Canada
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