Just when the fund-raising window seemed stuck, yet another group has managed to squeeze through the crack. This time Schroders & Associates Canada Inc. held a $204 million final close on its third buyout fund, Schroders Canadian Buyout Fund III.
Schroders & Associates began its fund-raising efforts early last year with an initial target between $150 million and $200 million. The firm held a first close last September at roughly $109 million. Although it was in the fund-raising market for longer than expected, it nevertheless was pleased with the outcome.
“The fund-raising process always takes longer than what you bargain for going in, and it did take a bit longer… but at the end of the day we were satisfied with the end result,” said Mathieu Gauvian, a vice president at Schroders & Associates.
Investors for the group’s third investment vehicle include public pension funds, university endowments and wealthy individuals. Canadian institutions make up more than half of the fund’s investors with U.K. and U.S. investors rounding out the remaining portion, Gauvian said.
The fund will primarily look to make majority-controlled investments in Canada, but will also look at opportunities in the U.S. through its portfolio companies. The fund has already made investments in AP Plasman Corp., an automotive parts manufacturer, and Matra Plast Industries Inc., an extruder and converter of polyolefins, for a total of $47 million.
Gauvin said Schroders & Associates has fully exited its first fund, achieving a net internal rate of return just shy of 20% and will look for “similar type returns” for its latest fund. – H.T.