Brookfield Asset Management and Fulcrum Capital Partners are the recipients of Canada’s Venture Capital & Private Equity Association (CVCA) Deal of the Year Awards for the private equity category.
This award highlights investment successes achieved by CVCA members and the awards committee felt that both Fulcrum and Brookfield deserved recognition for their respective realizations—Fulcrum for its investment in A & B Rail Services Ltd. and Brookfield for its investment in Longview Fibre Paper and Packaging Inc., says Sandra Bosela, chair of CVCA’s awards committee and managing director of OPTrust Private Markets Group.
Brookfield invested in Longview in 2007 and instituted a multi-year operational turnaround, which increased EBITDA by 300% over the ownership period. In July 2013, Brookfield sold Longview to KapStone Paper & Packaging, realizing total proceeds of $1.1 billion, generating an internal rate of return of 69.6%, representing a 10 times return on invested capital of $114 million.
And Fulcrum invested $9.6 million to acquire a controlling interest in A & B Rail Services in June 2008. In 2013, Fulcrum sold A & B Rail to a private equity investor group realizing total cash proceeds of $137 million, or 14.3 times invested capital, for a 74.2% internal rate of return.
The award was given to Brookfield and Fulcrum at the CVCA Annual Conference in Ottawa last month.
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