Manitoba First Fund commits to investment in Regina-based PFM Capital Inc.

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This article was published 17/08/2023 (793 days ago), so information in it may no longer be current.

The Manitoba First Fund has committed to its second investment in an operating fund — $15 million in Regina-based PFM Capital Inc., a firm that has six funds and about $850 million in assets under management.

PFM, which refers to itself as a private equity investment fund (rather than a higher risk venture capital fund), will put in $15 million of its own into its fund — called the APEX IV Fund — and open an office in Winnipeg.

It has already named Ryan Klassen, formerly the senior Manitoba executive at Bell MTS, as its senior executive for the Manitoba operations.

It is the second Saskatchewan-based fund to receive money from the Manitoba First Fund, which has been seeded with $100 million from the provincial government but operates with an independent board and its own management.

“We’re pleased to have the second allocation of capital from MFF committed and be another step closer in accomplishing our objective of facilitating access to capital for the further development and growth of Manitoba businesses, creating opportunities for Manitoba’s communities and economy,” said Ken Ross, CEO of MFF.

PFM’s website indicates that APEX IV Fund has already made one investment, in a Saskatchewan oil and gas company called Woodland Development Corp. that owns oil and gas wells in southeast Saskatchewan.

MFF has made one other investment: $25 million into Connect Manitoba Growth Fund, a newly created fund run by Saskatoon-based Westcap Management Ltd.

Westcap’s funds total about $1 billion in assets under management.

Its Manitoba fund launched in March with a total of $60 million to invest — $25 million from MFF, $30 million from four Manitoba credit unions and $5 million from Westcap.

It recently raised an additional $20 million from three other Manitoba credit unions.

It has not yet made its first investment in Manitoba, but fund manager, Lee Jebb said recently that discussions he has had in the province have bolstered Westcap’s initial bullish attitude about the Manitoba market.

PFM Capital is employee owned and has been in the private equity and venture capital field since 1993. It has raised just more than $1 billion in that time.

Not unlike Westcap’s intentions in Manitoba, PFM invests in mid-market businesses.

PFM will structure deals using whatever tools make most sense from common equity to subordinated debt.

martin.cash@freepress.mb.ca