TORONTO, June 22, 2005 - VenGrowth Private Equity Partners Inc. and its affiliates ("VenGrowth"), a leading private equity firm with over $1 billion in assets under management, today announced that the VenGrowth Funds have successfully exited their investment in Lakeport Brewing Corporation ("Lakeport") following the initial public offering ("IPO") of the Lakeport Brewing Income Fund. Lakeport raised approximately $52 million through the IPO.
The VenGrowth Traditional Industries Fund Inc. and The VenGrowth II Investment Fund Inc. invested $9 million as part of a financing round in Lakeport in December 2004, helping celebrated entrepreneur Teresa Cascioli become majority shareholder of the Hamilton-based brewery. The investment was structured as a subordinated loan accompanied by a minority equity position. Between the repayment of the loans and the sale of their equity stake, the VenGrowth Funds will receive over $20 million on their original $9 million investment.*
"Market conditions were such that the VenGrowth Funds have favourably exited their investment in Lakeport much sooner than anticipated," said Graham McBride, Managing General Partner, VenGrowth. "We were well aware of Lakeport's unique proposition in the growing value-priced beer market and this is a strong validation of our focus on partnering with established Canadian businesses with exceptional management teams."
About VenGrowth's Mezzanine Finance Team
VenGrowth's Mezzanine Finance Team specializes in financing solutions for mid-market Canadian companies in traditional manufacturing and services industries that are expected to generate sustainable cash flows. Mezzanine debt can be an attractive financing option for profitable companies because it offers lower equity dilution, increased flexibility and tax-deductible interest payments. VenGrowth's Mezzanine Finance Team invests on behalf of shareholders in participating VenGrowth Funds. The Team primarily invests using debt instruments with the objective of generating interest and dividend income to the Funds. In addition, the Funds will typically hold equity interests alongside the loans with the intention of generating long-term capital appreciation. This group of VenGrowth professionals is led by Graham McBride, a highly regarded mezzanine financing expert with over 19 years of experience.
About VenGrowth
With over $1 billion in assets under management, VenGrowth is Canada's largest private equity and venture capital firm managing both retail and institutional assets. Since 1982, VenGrowth's accomplished private equity managers have invested over $1.1 billion in 180 companies, building a strong track record of successful portfolio transactions. These investments have been made on behalf of over 180,000 individual investors and leading pension funds, banks, insurance companies and family foundations. Portfolio companies benefit from VenGrowth's substantial experience, resources, and hands-on investment style. VenGrowth's offices are located in Toronto (Corporate Headquarters) and Ottawa. For more information, please visit www.vengrowth.com.
About Lakeport Brewing
Lakeport employs some 200 people at its Hamilton brewery. Lakeport pioneered the value-priced beer category, and its proprietary brews include Lakeport Honey Lager, Lakeport Pilsener, Lakeport Light, Steeler, and the Mexican-style Brava beer. Lakeport is also a leader in the co-packaging business, producing a wide variety of alcoholic and non-alcoholic specialty beverages. For more information, please visit www.lakeportbeverage.ca.
For further information:
Angus Fisher
Media Relations
VenGrowth Asset Management Inc.
(416) 628 9255
afisher@vengrowth.com
Teresa Cascioli
Chair & Chief Executive Officer
Lakeport Brewing Income Fund
(905) 523 1170
tcascioli@lakeportbeverage.ca
*VenGrowth Traditional Industries Fund Returns (%): 1 yr 4.69%, Since Inception 1.94%
VenGrowth II Investment Fund Returns (%): 1 yr -1.20%, 3 yr -5.77%, 5 yr -4.05%, Since Inception -3.50%
As of June 17, 2005
