Alphi Capital Successfully Closes Its First Fund
All figures are in Canadian dollars.
Alphi Capital, a lower middle-market private equity firm, recently announced the successful close of its inaugural fund, Alphi Capital I, LP, securing total commitments of $295 million. This achievement not only highlights the firm’s strong market position but also demonstrates the significant interest from investors, exceeding its original target of $200 million.
Investment Strategy and Objectives
This debut fund received commitments from a diverse group of North American investors, including pension funds, foundations, endowments, government agencies, insurance companies, family offices, and industry professionals. Alphi Capital’s team, led by Co-Founder Thecla Sweeney, expresses deep gratitude to their investors, emphasizing their dedication to collaboration with management teams to implement effective value-creation strategies.
Focus on Business-to-Business Services
Alphi Capital specializes in investing in business-to-business service and value-added distribution companies. The firm’s target investments typically range from $5 million to $10 million of earnings before interest, taxes, depreciation, and amortization (EBITDA). They aim to work closely with business owners, offering not only capital but also the essential resources needed for rapid growth and professional scaling.
Strategic Investments Made
So far, Fund I has successfully invested in three platform companies:
- Da-Lee Services Inc. – based in Ontario, this company provides vital infrastructure and environmental services to municipalities and industrial clients.
- K2 Fasteners Inc. – located in British Columbia, it serves as a national master distributor of stainless-steel fasteners, backed by a highly skilled sales team.
- Eastbay Technologies Inc. – also from Ontario, is a leading provider of outsourced I.T. services, staffed by a team of trained sales and technical consultants.
Commitment to Founders and Growth
Andrew Fortier, Co-Founder of Alphi Capital, expressed his excitement about the company’s mission, stating that Alphi was designed to be an ideal partner for business founders aiming to elevate their operations. The firm has been very appreciative of the robust support and confidence shown by its investors as well as the contributions from other stakeholders leading to its current achievements.
Industry Partnerships
Metric Point Capital played a vital role as the exclusive placement agent for this fund, while Torys acted as the legal counsel in Canada and the U.S. Their contributions have been key in establishing Alphi Capital’s operational credibility and ensuring smooth transactions.
About Alphi Capital
Founded in 2022 and based in Toronto, Ontario, Alphi Capital is dedicated to partnering with founders and owners in the business-to-business service and value-added distribution sectors. The firm strives to foster meaningful relationships to enhance operational efficiencies and maximize growth potential.
More on Metric Point and Torys
Metric Point is recognized as a boutique private capital advisory firm that specializes in raising institutional capital and executing various transactions for alternative investment managers. Meanwhile, Torys LLP is renowned for its exceptional client service and its leading cross-border legal expertise.
Frequently Asked Questions
What is the total amount of Alphi Capital's inaugural fund?
The debut fund, Alphi Capital I, LP, successfully closed at $295 million.
What types of companies does Alphi Capital invest in?
Alphi Capital focuses on business-to-business service and value-added distribution companies.
Who are the founders of Alphi Capital?
Alphi Capital was co-founded by Thecla Sweeney and Andrew Fortier.
Where is Alphi Capital based?
Alphi Capital is located in Toronto, Ontario, Canada.
What services does Metric Point Capital provide?
Metric Point is a private capital advisory firm specializing in raising institutional capital and executing transactions for alternative investment managers.
