May 18, 2006

TorQuest Raises $491 Million

TorQuest Partners Inc., a middle-market private equity firm based in Toronto, has raised C$550 million ($490.7 million) with its second fund.

TorQuest Partners Fund II LP closed last week. The fund is a successor to TorQuest Partners Value Fund LP, which raised C$180 million in 2002.

The Canadian firm exceeded its goal for the second investment pool by 22%. It had aimed to raise C$450 million. The firm spent only a few months fundraising, said Brent Belzberg, TorQuest's senior managing partner. "Our offering memo was printed in late December," he said. "That's pretty good, eh"? Credit Suisse Securities LLC acted as placement agent. Skadden, Arps, Slate, Meagher & Flom LLP in New York and Stikeman Elliot LLP in Canada provided legal advice.

TorQuest's new fund will invest in midmarket companies operating in sectors that include manufacturing, business services, financial services and consumer.

The private equity firm typically invests C$15 million to C$100 million per deal, with a sweetspot at C$40 million to C$50 million, Belzberg said.

TorQuest has more than C$700 million of capital under management.