Clairvest Reports Fiscal 2025 Third Quarter Results
TORONTO, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2025 third quarter and nine months ended December 31, 2024. (All figures are in Canadian dollars unless otherwise stated)
Highlights
- December 31, 2024 book value was $1,234.3 million or $86.78 per share compared with $1,196.9 million or $84.06 per share as at September 30, 2024
- Net income for the quarter ended December 31, 2024 was $38.5 million or $2.70 per share
- Net income for the nine months ended December 31, 2024 was $101.3 million of $7.00 per share
- Clairvest and Clairvest Equity Partners VII (“CEP VII”) invested in Redstone Food Group
- Clairvest and Clairvest Equity Partners III (“CEP III”) sold its investment in Chilean Gaming Holdings
Clairvest’s book value was $1,234.3 million or $86.78 per share as at December 31, 2024, compared with $1,196.9 million or $84.06 per share as at September 30, 2024. For the quarter ended December 31, 2024, Clairvest recorded net income of $38.5 million, or $2.70 per share, which was driven by the realization of its investment in Chilean Gaming Holdings, a net increase in the valuation of Clairvest’s private equity investment portfolio and net foreign exchange gains due to material weakness in the Canadian dollar as the Company has various assets in foreign currencies which are not hedged against the Canadian dollar.
For the nine months ended December 31, 2024, the net income was $101.3 million, or $7.00 per share.
In November 2024, and as previously announced, Clairvest together with CEP VII made a $42.1 million minority preferred equity investment in Redstone Food Group, a leading commercial bakery of bread and bakery products, focused on the in-store bakery segment. Clairvest’s portion of the investment was $10.5 million. Redstone Food Group is the first investment of CEP VII’s US$1.2 billion investment program, which commenced on April 1, 2024.
In November 2024, Chilean Gaming Holdings, an acquisition entity for Clairvest, CEP III and other co-investors, sold its ownership interests in various casino properties in Chile. Proceeds on the sale totalled $41 million for Clairvest, compared with a cost of $28 million. There may be additional cash proceeds on this realization which are subject to certain conditions and are not expected to be material. Clairvest made its initial investment in Chilean Gaming Holdings in January 2008, and its realization represents the sale of the last investment of CEP III.
“This past quarter was a productive one for Clairvest, highlighted by a new investment and a portfolio realization. We are pleased to partner with Rob Wheeler, an entrepreneur who shares our vision for growth, and we look forward to supporting Redstone Food Group in its next chapter. Additionally, we completed the sale of a legacy portfolio company, enabling our team to focus on value creation within our existing investments and on the strategic deployment of capital in CEP VII. This sale also concluded the CEP III investment program which generated a net return of 2.5x and a 17% IRR for our third-party investors, making this another top quartile fund for Clairvest,” said Ken Rotman, CEO of Clairvest.
| Summary of Financial Results – Unaudited | ||||||
| Financial Results | Quarter ended | Nine months ended | ||||
| December 31 | December 31 | |||||
| 2024 | 2023 | 2024 | 2023 | |||
| ($000’s, except per share amounts) | $ | $ | $ | $ | ||
| Net investment gain (loss) | 22,304 | (19,116 | ) | 3,810 | (41,409 | ) |
| Net carried interest from Clairvest Equity Partners III and IV | 2,930 | 892 | 4,461 | 2,695 | ||
| Distributions, interest income, dividends and fees | 27,250 | 14,319 | 137,678 | 40,439 | ||
| Total expenses, excluding income taxes | 6,154 | 2,168 | 28,194 | 38,232 | ||
| Net income (loss) and comprehensive income (loss) | 38,450 | (4,950 | ) | 101,321 | (29,456 | ) |
| Basic and fully diluted net income (loss) per share | 2.70 | (0.34 | ) | 7.00 | (1.97 | ) |
| Financial Position | December 31 | March 31, |
| 2024 | 2024 | |
| ($000’s, except share information and per share amounts) | $ | $ |
| Total assets | 1,408,658 | 1,342,139 |
| Total cash, cash equivalents, temporary investments and restricted cash | 305,444 | 330,193 |
| Carried interest from Clairvest Equity Partners III and IV | 48,809 | 52,188 |
| Corporate investments(1) | 927,853 | 870,660 |
| Total liabilities | 174,309 | 165,842 |
| Management participation from Clairvest Equity Partners III and IV | 37,764 | 41,506 |
| Book value(2) | 1,234,349 | 1,176,297 |
| Common shares outstanding | 14,223,531 | 14,673,701 |
| Book value per share(2) | 86.78 | 80.16 |
(1) Includes carried interest of $133,597 (March 31: $143,617) and management participation of $98,788 (March 31: $103,740) from Clairvest Equity Partners V and VI, and $168,351 (March 31: $90,973) in cash, cash equivalents and temporary investments held by Clairvest’s acquisition entities.
(2) Book value is a Non-IFRS measure calculated as the value of total assets less the value of total liabilities.
Clairvest’s third quarter fiscal 2025 financial statements and MD&A are available on the SEDAR website at and the Clairvest website at .
About Clairvest
Clairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $4.6 billion of capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-led businesses. Under the current management team, Clairvest has initiated investments in 67 different platform companies and generated top quartile performance over an extended period.
Contact Information
Stephanie Lo
Director of Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
Forward-looking Statements
This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, its CEP limited partnerships and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries, its CEP limited partnerships and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions and regulatory risks. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.
