Vancouver-based HSBC Capital (Canada) Inc. has closed the first tranche of its fourth private equity fund aimed at investing in mid-market private companies.
The private equity firm has raised $160 million from new and existing institutional investors and plans to raise an additional $40 million to close out its new $200 million buyout fund by the end of the year.
The fund will focus on acquiring, managing and developing privately-held companies in various industries including services, manufacturing and distribution. Equity investments will range from $5 million to $25 million in business with an enterprise value of $10 million to $150 million.
While the fund will focus on Canadian investments, it will also consider opportunities in the U.S.
HSBC Capital (Canada) is the merchant banking subsidiary of HSBC Bank Canada. It manages more than $450 million of capital with a mandate to provide equity, mezzanine and bridge debt to mid-sized businesses.