Fulcrum Capital Partners Receives CVCA’s 2014 Private Equity ‘Deal of the Year’ Award for Its Investment in A & B Rail Services
Canada’s Venture Capital & Private Equity Association (“CVCA”) has announced that Fulcrum Capital Partners (“Fulcrum”) is the recipient of CVCA’s 2014 ‘Deal of the Year Award’ in the private equity category for its investment in A & B Rail Services Ltd.
Fulcrum invested $9.6 million from its Private Equity Fund III to acquire a controlling interest in A & B Rail Services Ltd. (“A & B Rail”) in June of 2008. Over the next five years, Fulcrum, together with A & B Rail management, executed on an ambitious growth strategy which incorporated geographic expansion, two strategic acquisitions and building out new service lines including an LRT division, signals, communication, civil and rail component manufacturing.
These initiatives transformed A & B Rail into the premier national rail services company in Canada. In December of 2013, Fulcrum sold A & B Rail to a private equity investor group realizing total cash proceeds of $137 million, or 14.3x invested capital, for a 74.2% IRR.
“We are very pleased to be awarded CVCA’s ‘Deal of the Year Award’ for our investment in A & B Rail. This represents an outstanding result for the firm and our investors and affords us a tremendous amount of momentum going into fundraising for Fulcrum's Private Equity Fund V. I would like to thank Paul Brum and our management partners at A & B Rail who made this success possible, as well as everyone in our Fulcrum team who worked tirelessly on this investment over the past five years,” said Paul Rowe, Partner at Fulcrum Capital Partners Inc.
The award was accepted by Paul Rowe of Fulcrum at the CVCA Annual Conference in Ottawa, Ontario on Wednesday May 21, 2014. This is Fulcrum’s second CVCA ‘Deal of the Year Award’ having received the award previously in 2007 for its investment in the Encore Group.