New private equity fund to raise $200M. Calgary Herald
[Ryan] Dunfield, who joined [Sam] Belzberg two years ago from ATB Financial, said the energy fund aims to make 12 to 15 investments that will attempt to pull in an average of 20 per cent or greater annual returns over a five- to seven-year term.
About half of the funds will be issued as loans for specific events, such as an acquisition or capital project, at higher cost than conventional credit but cheaper than public equity.
The other half will be through flexible “hybrid” financings that mix debt and equity. Under the first such deal, Second City paid for a gas processing plant and leased it to the producer client with provision for the company to buy it back at a later date.
Unlike many other private equity funds, Second City is willing to invest in both public and private firms, startups or established companies.