#Canada #Toronto #Alphi Capital #K2 Fasteners #Metric Point

Alphi Capital's Inaugural Fund Reaches $295 Million

Alphi Capital, a notable private equity firm based in Toronto, has successfully closed its first fund, raising a remarkable $295 million. This milestone not only underscores the firm’s strong market appeal but also highlights its commitment to partnering with service-oriented enterprises in Canada. The final closure of the fund exceeded its initial target of $200 million, demonstrating significant interest and confidence from a diverse array of North American investors, including pension funds, private foundations, government entities, family offices, and seasoned industry professionals.

Investor Confidence

Thecla Sweeney, Co-Founder of Alphi Capital, expressed gratitude towards their investors for entrusting the firm with their capital. She stated, "Our team is dedicated to working alongside our management teams to execute our value-creation strategy and deliver exceptional returns for our investors and partners."

Alphi Capital specializes in investing in business-to-business service and value-added distribution companies with planned initial platform investments generally falling within the range of $5 million to $10 million in earnings before interest, taxes, depreciation, and amortization (EBITDA). The firm is not solely focused on providing capital; Alphi collaborates with founders and business owners to equip them with the necessary tools and resources for rapid, sustainable growth, whether through organic means or acquisitions.

Portfolio Development

To date, Alphi Capital's Fund I has successfully invested in three platform companies:

• - Da-Lee Services Inc. based in Ontario, which offers critical infrastructure and environmental services tailored specifically for municipalities and industrial clients across Canada and the United States.
• - K2 Fasteners Inc. in British Columbia, recognized as the national master distributor of stainless-steel and corrosion-resistant fasteners, equipped with an expert technical sales team.
• - Eastbay Technologies Inc. located in Ontario, a leading provider of outsourced IT services across Canada, supported by a team of highly trained sales and tech consultants.

Andrew Fortier, another Co-Founder of Alphi Capital, remarked on the firm’s vision: "We launched Alphi to be a trusted partner for founders aiming to elevate their businesses. We are immensely grateful for the unwavering support and underpinning confidence of our investors and all those who have contributed to our success so far."

This successful closure serves as a promising indicator of Alphi Capital’s strategic direction and ability to form meaningful partnerships. With Metric Point Capital acting as its exclusive placement agent and Torys LLP providing legal counsel in Canada and the U.S., Alphi Capital looks forward to a dynamic investment future.

About Alphi Capital

Founded in 2022 and headquartered in Toronto, Ontario, Alphi Capital is dedicated to working with founders and business owners within the lower middle-market segment, particularly in the sectors of business-to-business services and value-added distribution.

About Metric Point

Metric Point is a boutique advisory firm specializing in raising institutional capital and executing a broad spectrum of transactions, ensuring optimal liquidity solutions for alternative investment managers.

About Torys LLP

Torys is a renowned business law firm acclaimed for its exceptional client service and its cohesive cross-border legal expertise. In 2024, it achieved distinction as the only Canadian firm to be ranked Band 1 in both Fund Formation and Buyouts by Chambers and Partners.

Through strategic investments and dedication to value creation, Alphi Capital is poised to become a major player in the private equity landscape of Canada and beyond.