CVCA names venture capital and private equity ‘Deal of the Year’ Award recipients
The Canadian Venture Capital & Private Equity Association (CVCA) announced winners of its annual Deal of the Year Awards during its 2016 Annual Conference in Toronto on May 24th.
Calgary-based Avrio Capital won in the venture capital category for its sale of Fresh Hemp Foods Ltd., while Montreal-based Novacap Technologies III, L.P. won in the private equity category for its sale of Stingray Digital Group Inc. Both deals were selected for outstanding cash realization value, and multiple of invested capital returned.
The CVCA’s Deal of the Year Awards promote, highlight and celebrate the achievements of CVCA members who have had outstanding investment successes. The selection process focused on CVCA members with the most significant investment return realized during calendar 2015.
Venture Capital Deal of the Year:
Avrio Capital Inc., (“Avrio”) a global pioneer in ag-tech investing based in Calgary, invested $6.05 million in Fresh Hemp Foods Ltd, and realized proceeds of over $52M representing almost 8.67X its initial capital, generating an internal rate of return of 48.24 per cent. The Company, which developed a broad suite of hemp based food products branded under “Hemp Hearts” and “Hemp Pro”, was sold to Compass Diversified Holdings, a U.S. private equity firm.
“Fresh Hemp Foods is another terrific example of how value can be created by adding intellectual horsepower to a sector – agriculture – where Canada has a very natural competitive advantage,” commented Mike Woollatt, CEO of the CVCA. “Bringing intellectual horsepower to segments where Canada is a global leader provides the ingredients for the creation of companies that can be relevant on a global scale.”
The award represents the third time Avrio Capital has been recognized by the CVCA with the ‘Deal of the Year’ title. The firm was recognized in 2013 for its investment in Brookside Foods Ltd., and in 2014 for its investment in Wolf Trax Inc.
Private Equity Deal of the Year:
Novacap Technologies III, L.P., (“Novacap”) is one of the most prominent buyout firms in Canada focused on partnering with entrepreneurs in building world class companies. The partnership invested $9.9M into Stingray Digital and successfully IPO’d the business on June 3, 2015, divesting 80 per cent of its interest as part of the transaction. Stingray is a leading provider of cutting-edge applications delivering high quality music and video content on multiple platforms including Digital TV, IPTV Internet, Mobile and Game Consoles.
- Cash proceeds realized $66.4M; Cash proceeds realized plus value of retained interest $78.9M
- Multiple of invested capital realized 6.7X; Multiple of invested capital realized plus retained interest 7.9X
- Internal rate of return realized 31.4 per cent; Internal rate of return realized plus retained interest 33.8 per cent
This is also the third time Novacap has been recognized after being awarded the Deal of the Year Award in 2000 for its investment in InnoMediaLogic and then subsequently in 2005 for its investment in Sante Naturelle A.G. “We’re thrilled to once again recognize Novacap for this outstanding investment outcome,” said Aki Georgacacos, Chair of the CVCA awards committee. “Demonstrating consistently strong returns over multiple funds is a testament to Novacap’s partnership approach, and patience in developing entrepreneurs and management teams into world class companies.”
About Avrio Capital:
The Avrio group was established in 2002 to identify and invest in innovative food and agriculture companies that provide solutions to global challenges in the areas of health, wellness and sustainability. As the global pioneer in ag and food technology investing, the team has been an active investor in the space for almost 15 years, having completed over fifty investments since its inception. Avrio is a highly engaged investor, working closely alongside of their portfolio companies to provide the support and resources needed to transform emerging companies into global leaders. www.avriocapital.com
About Novacap Technologies III, L.P.:
Novacap is one of the most prominent buyout and growth equity firms with over $1.6 billion of assets under management and having invested in over 75 platform investments. Since 1981 they have helped companies accelerate their growth and maximize value. www.novacap.ca
About the CVCA:
The CVCA is the voice of Canada’s venture capital and private equity industry. We are focused on improving the private capital ecosystem by broadening industry awareness and providing market research, networking, and professional development opportunities. We also advocate on behalf of the industry to ensure sound public policy that encourages a favourable investment environment. The CVCA works alongside its members, who represent the vast majority of private capital firms in Canada, to improve the industry and drive innovation and growth.
For further information, or to arrange an interview, please contact:
Senior Manager, Communications
Chairman, CVCA Awards Committee