Wellington Financial increases Fund III to $150 million
9 January 2009In case you missed it, a press release just hit the wire that should be of interest. Wellington Financial LP added two new Canadian institutional limited partners yesterday, with commitments totalling $24.1 million. Our Fund III was originally capitalized with $125.9 million of equity commitments in October 2006. With these two new LPs, Fund III now has $150 million of re-circulating capital at its disposal.
We closed 26 deals over a 26 month period in Fund III, and wanted to have sufficient capital available to help Canada’s best growth stories in this “scarce capital” market. This new capital is also a tremendous validation of Wellington’s business model from the perspective of the institutional investment community. The current market is one where institutions are generally backing away from “alternative investments” (such as venture capital or hedge funds), but our value proposition continues to work for both investors and borrowers alike.
Here is the text of the press release:
TORONTO, Jan. 9 /CNW/ – Wellington Financial LP, a privately held specialty finance firm, today announced that Wellington Financial Fund III has raised an additional $24.1 million of limited partner commitments from two new Canadian-based institutions, increasing Fund III to $150 million in size. Wellington Financial provides capital to growing private and public companies in the form of term, venture or amortizing loans across North America.
Launched in late 2006, Fund III was originally capitalized with $125.9 million of equity commitments. Wellington Financial has led or participated in 26 new financings via Fund III, providing $180 million of new capital for Canadian-based companies.
“In anticipation of continued demand for our True Growth Capital(R), it made sense to add two new limited partners to our existing investor group,” said Mark McQueen, President and Chief Executive Officer of Wellington Financial LP. “Our fund utilization and commitments exceeded 80% last Fall, and we felt it was prudent to raise the additional capital given the tightening capital market and the opportunities we expect to see in 2009 and beyond.”
Added Ken Rotman, Wellington Financial’s Chairman, “In a very difficult climate for raising institutional capital, we are delighted to receive this vote of confidence from two new institutional limited partners. 26 Fund III deals over a 26 month period speaks to the attraction of Wellington’s capital to Canadian entrepreneurs, regardless of the economic times or market cycle.”
AO
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