Kirk Falconer

Canadian private equity firm Sprott Resource Corp has invested $19.5 million in InPlay Oil Corp, a private exploration and development company with headquarters in Calgary. Sprott is investing alongside InPlay Oil's management and directors, as well as its existing investors, which include JOG Capital, a Calgary-based private equity firm that invests in the upstream oil and gas industry. Earlier in June, Sprott-backed Long Run Exploration Ltd (TSX: LRE) agreed to acquire another JOG Capital portfolio company, Crocotta Energy Inc (TSX: CTA), for $357 million. That acquisition is expected to close in August.

Amaya Gaming Group Inc (TSX: AYA) has agreed to buy the parent of Rational Group Ltd for US$4.9 billion. Based on the Isle of Man, Rational Group is the owner and operator of online poker platforms PokerStars and Full Tilt Poker. The Montréal-based Amaya said the deal will make it the world's largest publicly traded online gaming provider. The acquisition will be funded through cash, debt and private placements. GSO Capital Partners, the credit division of U.S. private equity firm The Blackstone Group, will subscribe for US$600 million in convertible preferred shares, and purchase US$55 million of common shares in the business upon the deal's closing, which is expected before Sept. 30.

The private equity group of Brookfield Asset Management had a memorable 2013. Its accomplishments included portfolio exits that added materially to the larger Brookfield’s financial results last year – the strongest in its history. Two of these deals were recently in the news. A realized exit, the sale of Longview Fibre Paper and Packaging, won Brookfield the Canadian PE industry’s most prestigious award. A planned exit, the sale of Ainsworth Lumber, was instead nixed after prolonged efforts to comply with regulatory requirements.

Brookfield Asset Management has acquired Thayer Lodging Group Inc, a U.S. private equity firm that invests in hotel real estate. No financial terms were disclosed for the transaction. Update: Based in Annapolis, Maryland, Thayer Lodging has since its founding in 1991 completed 43 hotel investments with a total acquisition cost of approximately US$2.5 billion. The firm will continue to operate Thayer's investment management, asset management, and property management businesses as a subsidiary of Brookfield.

Canadian private markets investor Northleaf Capital Partners has wrapped up a new fund earmarked for opportunities in the global private equity secondary market.

Canadian private markets investor Northleaf Capital Partners has wrapped up a new fund earmarked for opportunities in the global private equity secondary market, peHUB Canada has learned. Northleaf Secondary Partners, launched in 2013, has raised a total of US$255 million. That’s 27% above the US$200 million target set for it. Northleaf managing director Jeff Pentland said he believes the fund exceeded expectations because of the powerful forces that are currently driving secondary buying and selling worldwide, as well as the firm’s 11-year track record of investing in the space.

Canadian private equity firm Novacap has closed its fourth technology, media and telecommunications fund, Novacap TMT IV LP, raising $375 million. The fund surpassed its target of $350 million, and is more than twice the size of the $180 million Fund III, closed in 2007. Fund IV was backed by a range of institutional investors, including Teralys Capital, Caisse de dépôt et placement du Québec, Investissement Québec, Export Development Canada, Business Development Bank of Canada and several Canadian and Québec pension funds. Last December, peHUB Canada interviewed Novacap president and managing partner Pascal Tremblay about the fund and technology buyout opportunities in North America. Founded in 1981, Novacap is based in Longueuil, Québec.

Spring is here, along with a welcome thaw to end a brutal winter. That is perhaps an apt metaphor for private equity fundraising, which also appears to be warming up. The final close of Onex Partners IV LP, the fourth partnership of Canadian private equity firm Onex Corp, provides a timely example. Fund IV has been wrapped up with US$5.15 billion in total capital committed. According to Onex, it is the largest fundraise in its history.

DSW Inc (NYSE: DSW) has completed its previously announced purchase of a 49.2% interest in Canadian footwear and accessories retailer Town Shoes Ltd. The final acquisition price was $75.5 million. DSW bought the stake from Alberta Investment Management Corp (AIMCo) and other minority investors. AIMCo and Canadian private equity firm Callisto Capital together acquired a majority position in the Toronto-based Town Shoes in 2012. DSW said that its initial stake provides 50% voting control and board representation equal to the primary remaining shareholder, Callisto. With headquarters in Columbus, Ohio, DSW is a branded footwear and accessories retail company.

India's Aditya Birla Nuvo Ltd has completed its sale of business process outsourcing unit Minacs to an investor group led by private equity firms CX Partners and Capital Square Partners. Post this deal, which was valued at US$260 million, Minacs will be majority-owned by CX Partners. The company has a significant market presence in Canada, and an office in Toronto. Minacs was formerly a portfolio investment of Canadian private equity firm ReichmannHauer Capital Partners. The firm led the acquisition of Minacs, a TSX listed company, in 2006 and subsequently invested in TransWorks Information Services Ltd, an Indian BPO company that merged with Minacs.