Announcement

Press Release

Vertu Capital Raises more than $300 Million for its Inaugural Fund

March 22, 2023March 22, 2023By Vertu Capital

TORONTO – March 22, 2023 – Vertu Capital, a private equity firm specializing in global enterprise software companies, is pleased to announce the close of its inaugural fund, Vertu Partners Fund I, with more than $300 million in capital commitments from a broad range of high-quality institutional investors. The Fund was oversubscribed with commitments exceeding its original hard cap.

Founded in 2017 by Lisa Melchior, a leading private equity technology investor in Canada, Vertu leverages its deep network and sector expertise to pre-emptively identify attractive investment opportunities and meaningfully partner with software and software-enabled companies to grow their businesses and deliver robust returns to investors.

“This is an exciting time to be in the market with new capital to deploy. The current vintage of mid-sized software businesses is well-positioned to differentiate themselves in the current market, and we are actively sourcing those well-run, profitable enterprises that are primed to scale,” said Vertu Founder and Managing Partner, Lisa Melchior. “Our investors share our vision and belief in our team and strategy, and we are deeply gratified to have such impressive and well-regarded LPs in our inaugural fund.”

Vertu received strong support from a diverse range of high-quality Canadian and US institutional investors including New York State Common Retirement Fund, BDC Capital, BMO Capital Partners, funds managed by BMO Global Asset Management, CIBC, Export Development Canada, and Manulife Investment Management, as well as several established asset managers, family offices, and industry executives.

To date, Vertu has completed two fund investments: Dejero Labs Inc., a global provider of critical communications technology, and PathFactory Inc., an intelligent content platform for B2B digital marketing.

About Vertu Capital

Vertu Capital is a Toronto based private equity firm that invests in high potential global technology companies. Vertu partners with the management teams of market leading and scaling companies to accelerate and support the next stage in their growth strategy. Founded by Lisa Melchior, former Managing Director with OMERS Private Equity, Vertu has decades of global tech private equity experience with deep domain expertise in software and software enabled business models. Vertu’s team brings sector best practices, actionable value creation strategies and a deep network to optimize company performance through all phases of growth. For more information, please visit www.vertucapital.ca.

Vertu Media Contact

Contact: Laura Auquilla

Email: lauquilla@vertucapital.ca

In the Media

CVCA Announces Winners of the First Canadian Women in Private Capital Awards

March 8, 2023March 17, 2023By Vertu Capital

Mar. 08, 2023 by CVCA Staff

Toronto, ON – March 8, 2023 – The Canadian Venture Capital and Private Equity Association (CVCA) is pleased to announce the winners of the inaugural Canadian Women in Private Capital Awards, which celebrates exceptional women who have shown a dedication to professional excellence in the Canadian private capital industry.

The Canadian Women in Private Capital Awards are separate from CVCA’s general awards program and aim to identify, recognize, and celebrate the achievements and contributions of exemplary women in the industry. Winners will be recognized during a sold-out morning reception event, sponsored by CIBC Innovation Banking, in celebration of International Women’s Day.

CVCA’s Woman of Achievement Award recognizes outstanding Canadian GPs and their dedication to elevating the performance and leadership of women in the Canadian private capital industry. The winners of the Woman of Achievement Award have shown dedication to raising the bar for performance by women in the industry, have had a significant impact on innovation and value creation and have contributed meaningfully to improving gender diversity in the industry and beyond.

The 2023 winners of the CVCA’s Woman of Achievement Award are Whitney Rockley from McRock Capital, who won the award for venture capital (VC), and Lisa Melchior from Vertu Capital, who won the award for private equity (PE).

Whitney Rockley is a Co-Founder and Managing Partner at McRock Capital. With over 20 years of experience in the industry, Rockley has been instrumental in building McRock Capital into a leading investor in the digital industrial sector. She is also passionate about supporting women in entrepreneurship and as the first woman to serve as Chair of CVCA since its inception in 1974, she spearheaded the establishment of the inaugural taskforce on diversity and inclusion. This initiative was instrumental in creating CVCA’s Diversity and Inclusion committee that she skillfully led for many years. With a fervent conviction that diverse teams deliver superior performance, she is a powerful advocate for these initiatives within the technology and private capital communities.

Rockley has achieved several notable accomplishments in recent years. Rockley was instrumental in raising two oversubscribed funds for a total of CAD $200M. McRock has also made successful investments, with one of its portfolio companies, ThoughtTrace Inc., being acquired by Thomson Reuters in Q1 2022. Additionally, mnubo was successfully acquired by AspenTech in 2019 and Decisive Farming was acquired by Telus later that same year. Rockley was the Chair of the Board of Directors of Decisive Farming and a member of mnubo’s Board of Directors.

Lisa Melchior is a trailblazing Founder and Managing Partner at Vertu Capital, where she is the first woman in Canada to start a private equity fund. With over 20 years of experience in the industry, Melchior has invested more than $1.5 billion in 25 technology companies over the course of her career, becoming a well-respected figure in the private capital ecosystem. She is also a staunch advocate for promoting diversity in the industry, having built a highly diverse team, and having mentored many women in private equity over the past two decades.

Melchior has achieved several notable accomplishments in recent years. In 2021, Melchior and her team launched Vertu Partners Fund I, targeting growth to lower mid-market technology companies, a previously underserved market in Canada. Under Melchior’s leadership Vertu has grown quickly, having led several successful investments, with one of its portfolio companies, Firmex Inc, sold to strategic buyer Datasite in Q3 2021.

Read the full announcement here.

Portfolio Companies

Vertu Capital Announces Investment in PathFactory

November 8, 2021November 8, 2021By Vertu Capital

Vertu exceeds $300 million in total transacted deal value year-to-date

Toronto, Ontario, November 8, 2021 – Vertu Capital, a private equity firm that invests in high potential, Canadian-headquartered global enterprise software companies, is pleased to announce a significant investment in PathFactory, a leading intelligent content platform for B2B digital marketing.

The acquisition is the third transaction for Vertu Capital so far this year, highlighting Vertu’s rapid growth and proven formula for pre-emptively identifying attractive technology investment opportunities and quickly delivering a significant return to investors and partner companies. The PathFactory acquisition brings Vertu’s total transacted deal value to more than $300 million year-to-date.

Over the course of 2021, Vertu has achieved the following milestones:

Acquired a majority stake in PathFactory in November
Completed the strategic sale of Firmex, a global provider of virtual data rooms, in July
Acquired a minority stake in Dejero, a leading global provider of critical communications technology, in April
Launched Vertu Partners Fund I, in March
Expanded its Investment Team and added to its roster of seasoned Operating Advisors, with the most recent addition of Jason Smith, Founder and Executive Chair of Real Matters, a real estate software company

“It has been an incredible year for Vertu, and the momentum is only growing. We launched Vertu with a very focused investment thesis and a belief that private equity investing could be done differently, and better. And we have delivered on that”, said Lisa Melchior, Managing Partner and Founder of Vertu Capital. “We’re in a technology super cycle, and it’s easy to deploy capital. What we do is leverage our deep domain expertise and extensive network to surface exceptional opportunities and invest with discipline. We bring a culture of integrity and true collaboration that appeals to high performance management teams, drives a step change in outcomes at our partner companies and delivers value quickly to our investors.”

“PathFactory is a classic Vertu investment,” added Melchior. “It is positioned to be a clear category winner in B2B digital marketing and content intelligence, a sector that has become mission critical for businesses since the COVID-19 pandemic triggered an acceleration in marketing spend to digital content. With its proprietary content intelligence, automation and unique end-to-end platform, PathFactory’s scalable software allows it to do what no one else in the space is doing.”

PathFactory is a leading innovator in the B2B digital marketing space. Its proprietary intelligent content platform leverages artificial intelligence and data to drive personalized and relevant marketing content that delivers meaningful and measurable B2B sales and revenue. Recognized as one of North America’s Technology Fast 500 by Deloitte and a “Cool Vendor” by Gartner, PathFactory clients include Fortune 500 companies such as Cigna, Verizon, Oracle, Nvidia, Honeywell, Adobe, HP, and Cisco Systems.

“Intelligent content is all about delivering the right content, to the right people, at the right time, and being able to do that at scale. It’s fundamentally about anticipating future needs in an intelligent and data-driven way,” said Dev Ganesan, President and CEO of PathFactory. “That is exactly what Vertu brings as our new lead investor and why we decided to partner with them. With their deep understanding of the platform, and proven ability to scale, they are the right partners at the right time to accelerate our growth potential.”

Alongside Vertu Capital, additional co-investors in PathFactory include BDC Capital, private equity funds managed by BMO Global Asset Management, and Nicola Wealth.

About Vertu Capital

Vertu Capital is a private equity firm that invests in high potential, Canadian-headquartered global technology companies. Vertu partners with the management teams of market leading and scaling companies to accelerate and support the next stage in their growth strategy. Founded by Lisa Melchior, former Managing Director with OMERS Private Equity, Vertu’s partners have decades of global tech private equity experience with deep domain expertise in software and software enabled business models. Vertu’s team brings sector best practice, actionable value creation strategies and a deep network to optimize company performance through all phases of growth. For more information, please visit www.vertucapital.ca.

About PathFactory

Leading enterprise and mid-market B2B companies use PathFactory’s Intelligent Content Platform to accelerate nurture, improve win rates, and understand content performance by delivering intelligent content experiences and virtual events across the buyer’s journey. PathFactory was named the inaugural Visionary CX ISV Partner of the Year award winner at the 2020 Oracle Markie Awards, recognized by Deloitte as one of North America’s Technology Fast 500, and ranked #13 on the 2020 Growth List of Canada’s fastest-growing companies. It was also named a Fall 2021 Content Experience Leader by G2, a 2019-2021 Top-Rated Content Marketing Software by TrustRadius, and a 2019 Cool Vendor in Technology Marketing by Gartner. Visit PathFactory.com to learn more.

Media Contact

Contact : Laura Auquilla

Email : lauquilla@vertucapital.ca

Portfolio Companies

BetaKit: FIRMEX ACQUIRED BY US-BASED DATASITE IN VERTU CAPITAL’S FIRST EXIT

July 26, 2021By Vertu Capital

BY JOSH SCOTT

Toronto-based virtual data room (VDR) company Firmex has been acquired by fellow VDR provider Datasite. The financial details of the deal were not disclosed.

Created in 2020 with the sole purpose of helping to recapitalize Dejero, UbiDatasite has acquired 100 percent of Firmex from majority shareholders Vertu Capital and BDC Capital, and Firmex’s management. The acquisition comes about two and a half years after Toronto-based Vertu and BDC teamed up in early 2019 to acquire a majority stake in Firmex from Québec investor Novacap, Firmex’s only other investor aside from the company’s management team.

Real the full article here.

Portfolio Companies

Vertu Capital and BDC Capital Announce Strategic Sale of Firmex

July 26, 2021July 26, 2021By Vertu Capital

Exit highlights value generating partnership with high-growth tech firm

Toronto, Ontario, July 26, 2021. Vertu Capital, a private equity fund specializing in high potential, Canadian-headquartered technology companies, and BDC Capital are pleased to announce the strategic sale of Firmex, a global SaaS-based provider of virtual data rooms, to Datasite®, a leading SaaS-based technology provider for global mergers and acquisitions (M&A) professionals.

The sale comes just over two years after Vertu Capital, in partnership with BDC Growth Equity Partners Fund I, acquired majority ownership of Toronto-based Firmex, and marks Vertu’s first exit since the firm was launched in 2017. Since partnering with Vertu, Firmex has generated double-digit revenue and EBITDA growth. Its accelerated growth and sale to a strategic buyer underscores Vertu’s ability to quickly deliver value for high potential companies and investors.

“Our partnership with Vertu has been a game-changer for Firmex,” said Joel Lessem, Firmex CEO and Co-Founder. “Lisa Melchior and the Vertu team brought deep domain and operational expertise that allowed us to take what was already a fast-growing, market leading company, to the next level. Vertu not only understood the potential of our platform, but brought a collaborative and creative approach to partnering that allowed us to more fully realize the underlying value of the business. We could not have hoped for a better partner.”

Founded in 2006, Firmex is the world’s most widely used virtual data room provider, trusted by more than 4,200 companies in 110 countries, including leading global financial institutions, law firms, and governments. Firmex’s secure and intuitive SaaS solution allows for the sharing of large volumes of confidential documents and mission-critical undertakings, including financial transactions, litigation and compliance across a range of industries.

With its cloud-based offering and world class security, Firmex is positioned for continued strong growth as organizations look to enhance their online collaboration in a safe and secure environment.

“At Vertu, we take a very selective approach to the companies we invest in. Firmex was Vertu’s first investment, and we knew we had a winner. They had an excellent management team, with a scalable technology and a unique SaaS-based operating model,” said Lisa Melchior, Managing Partner and Founder of Vertu Capital. “This strategic sale highlights the success of our investment thesis, and I am very pleased to be delivering significant value for our investors.”

“We are proud to have supported Firmex in its growth journey and it has been a pleasure working with Joel, Lisa, and the entire team over the last few years to help scale a Canadian leader,” added Loren Rafeson, Partner, BDC Growth Equity Partners. “We look forward to following the next phase of Firmex’s growth.”

The Firmex sale follows Vertu’s most recent investment in Dejero, a Waterloo, Ontario-based global provider of live video and real time data solutions. Vertu led a $60-million recapitalization of Dejero in April, 2021, taking a minority stake in the company. The Dejero investment is the first to come out of Vertu’s inaugural fund, Vertu Partners Fund I.

About Vertu Capital

Vertu Capital is a private equity firm that invests in high potential, Canadian-headquartered global technology companies. Vertu partners with the management teams of market leading and scaling companies to accelerate and support the next stage in their growth strategy. Founded by Lisa Melchior, former Managing Director with OMERS Private Equity, Vertu’s partners have decades of global tech private equity experience with deep domain expertise in software and software enabled business models. Vertu’s team brings sector best practices, actionable value creation strategies and a deep network to optimize company performance through all phases of growth. For more information, please visit www.vertucapital.ca.

About BDC Capital

BDC Capital is the investment arm of BDC—Canada’s only bank devoted exclusively to entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers a full spectrum of risk capital, from seed investments to growth equity, supporting Canadian entrepreneurs who wish to scale their businesses into global champions. Visit bdc.ca/capital.

Media Contact

Contact : Laura Auquilla

Email : lauquilla@vertucapital.ca

Portfolio Companies

BetaKit: VERTU CAPITAL SECURES MINORITY STAKE IN DEJERO WITH $60 MILLION INVESTMENT

April 23, 2021July 26, 2021By Vertu Capital

BY JOSH SCOTT

Waterloo-based company Dejero, which provides communications connectivity tech, announced a $60 million CAD minority recapitalization deal led by Toronto’s Vertu Capital. The investment, which will see Vertu acquire a minority stake in Dejero, was supported by Ubicom Ventures.

Created in 2020 with the sole purpose of helping to recapitalize Dejero, Ubicom is a special purpose investment fund managed by three Bay Street investors in partnership with Dejero’s founder Bogdan Frusina and CEO Bruce Anderson.

Real the full article here.

Uncategorized

Vertu Capital Leads $60 Million Recapitalization of Dejero to Accelerate Growth

April 21, 2021April 21, 2021By Vertu Capital

Toronto, Ontario, April 21, 2021 – Vertu Capital, a Canadian private equity fund focused on technology platforms seeking transformational growth, is pleased to announce it has led a $60 million minority recapitalization of Dejero Labs Inc. (“Dejero”), a leading global provider of resilient connectivity for critical communications. Vertu partnered with Ubicom Ventures, a special purpose investment entity in partnership with Dejero management, to complete the transaction and pave the way for accelerating the company’s product and market expansion. Dejero will be the first investment for Vertu’s inaugural fund, Vertu Partners Fund I.

Founded by Bogdan Frusina in 2008 and led by Chief Executive Officer Bruce Anderson, Dejero is headquartered in Waterloo, Ontario, one of Canada’s key tech hubs, with offices in the U.S. and UK, and a global distribution network. The company’s live video and real-time data solutions are used by leading broadcasters, media production companies, public safety and government agencies, along with enterprise customers who need uninterrupted connectivity for their critical applications.

“Canada’s technology ecosystem is thriving, and we are excited to be playing a vital role by actively partnering with premier companies that are at critical points of inflection in their growth and scale,” said Lisa Melchior, Founder and Managing Partner of Vertu. “Dejero exemplifies an ideal Vertu investment; the company has an established world leading technology solution and is accelerating its expansion into multiple global markets. We are thrilled to be partnering with Bruce, Bogdan and the entire Dejero management team on this exciting new chapter for the company.”

“Vertu was the perfect partner for us. They bring deep software sector expertise and decades of experience investing in large global tech businesses, so they understand where Dejero is heading,” Mr. Anderson said. “We are excited to collaborate with the Vertu team on our plans to accelerate our growth.”

“We are thrilled about the opportunity that Dejero brings to our investors,” said Ubicom Managing Director Terry Thib. “Our mission is to identify disruptive technologies that can be deployed on a global scale. Through our partnership with Bruce and Bogdan, we are excited to play a critical role in the evolution of Dejero as it continues to tackle burgeoning critical connectivity markets that will benefit from its cutting-edge technology.”

With this transaction, Dejero remains a Canadian owned business.

About Vertu Capital

Established in 2017 by veteran technology private equity investor Lisa Melchior, Vertu Capital is a private equity firm that invests in high potential Canadian headquartered technology companies. Vertu seeks to partner with management teams of market leading and scaling companies that are looking for an experienced investor and thought partner to actively collaborate with them to achieve great things at a rapid pace. Vertu’s partners have decades of global tech private equity experience with deep domain expertise in software and software enabled business models. We are focused on the achievement of a company’s long-term goals, offering extensive knowledge valuable through all phases of growth. For more information, please visit www.vertucapital.ca.

About Ubicom

Ubicom Ventures Ltd. is a special purpose investment fund established in 2020. Managed by veteran investors Terry Thib, Neil Maruoka, and Gajan Kulasingam, and in partnership with Dejero founder Bogdan Frusina and CEO Bruce Anderson, Ubicom was created with the sole purpose of participating in recapitalization of Dejero. Terry, Neil, and Gajan have decades of capital markets experience investing across the entire capital spectrum including both private and public debt and equities.

About Dejero

Driven by its vision of reliable connectivity anywhere, Dejero aggregates diverse connectivity paths including LTE and 5G cellular, satellite and broadband into a virtual ‘network of networks’ to deliver enhanced reliability, expanded coverage, and greater bandwidth using cloud-based technology. A two-time technical Emmy® Award winner, Dejero is trusted to solve the mission-critical live video transport and real-time data transfer challenges of organizations around the world. Founded in 2008, privately held Dejero is headquartered in Waterloo, Ontario, Canada. For more information, visit www.dejero.com.

Uncategorized

Jason Smith Joins Vertu Operating Advisor Network

March 5, 2021By Vertu Capital

[Toronto, Ontario, March 5, 2021] Vertu Partners Fund I, a private equity fund that focuses on high-potential technology businesses in the Canadian lower mid-market, announced today that veteran tech executive and entrepreneur, Jason Smith, has joined as an operating advisor.

Jason is a highly regarded Canadian tech entrepreneur with more than 25 years of experience building market leading disruptive fintec companies across North America. In 2004 Jason founded Real Matters, Inc., a proprietary software platform that automates mortgage lending and insurance services and now serves a majority of the Tier I banks in the US and Canada. Jason has navigated the company from inception to scale and through five rounds of financing, including its Initial Public Offering in May 2017.

Full profile here.

Lisa Melchior, Founder & Managing Partner, said “Jason is one of Canada’s top technology leaders who has successfully executed on his vision to build scaled tech businesses. I am thrilled that he is joining our network of operating advisors and will share his experience to support the growth of Vertu’s portfolio companies. As a board member of Real Matters, I have first-hand knowledge of Jason’s talent as a technology leader. Together, we will continue to position Canadian technology firms for growth and success.”

“As a founder and leader of Canadian technology companies from the concept stage up and through to the public markets, I know how important it is to be aligned with shareholders who partner with management and roll up their sleeves to make a difference. That partnership is a core principle at Vertu, and I look forward to working with Lisa and the team to share my experience with the next generation of tech founders with bold and ambitious goals,” said Jason Smith.

Vertu Partners Fund I is managed by Vertu Capital, formed in 2017, a Toronto-based private equity firm that focuses on growth-oriented enterprise software or software-enabled businesses in the Canadian lower mid-market. Founded by Lisa Melchior, a 20+ year private equity professional with a technology track record that includes more than $1 billion of invested capital, Vertu offers deep global sector-focused experience to high potential Canadian technology businesses seeking transformational growth.

Uncategorized

Mogo Expands Into Global B2B Fintech Market with Acquisition of Digital Payments Technology Company Carta Worldwide

November 19, 2020November 19, 2020By Vertu Capital

VANCOUVER, British Columbia–(BUSINESS WIRE)–Mogo Inc. (TSX:MOGO) (NASDAQ:MOGO) (“Mogo” or the “Company”), a financial technology company focused on empowering consumers with innovative digital financial solutions that help them get in control of their financial health, today announced it has reached a definitive agreement (the “Agreement”) to acquire Carta Solutions Holding Corporation, also known as Carta Worldwide (“Carta”), a leader in providing next-gen digital payments solutions, in an all-stock transaction by way of a plan of arrangement (the “Transaction”). The combination creates one of Canada’s largest vertically integrated fintech companies and significantly expands the Company’s addressable market by entering into the $2.5 trillion global digital payments market.

Read the rest here

Uncategorized

VERTU Capital Taps John Windover as Operating Advisor

June 2, 2020March 5, 2021By Vertu Capital

[Toronto, Ontario, June 2, 2020] VERTU Capital, a private equity firm that focuses on high-potential enterprise software or software-enabled businesses in the Canadian lower mid-market, announced today the addition of John Windover to its operating advisor bench. Mr. Windover is an experienced management consultant with over 22 years of experience advising investors and clients across a wide range of technology sectors.

Lisa Melchior, Founder and Managing Partner said, “John has been a trusted advisor both to me and to my Partner Gil Nayot for a number of years and we are delighted to welcome him as an operating advisor. His extensive global experience both conducting due diligence on technology businesses and advising technology clients across a variety of key performance issues will be extremely valuable to Vertu and its portfolio companies. I look forward to working with John as we position Canadian technology firms for continued growth and success.”

“I have worked with Lisa and Gil for years on many successful technology investments and I am absolutely thrilled to advise them and the broader VERTU team. There is a real need for growth capital for Canadian technology companies which VERTU is uniquely well-positioned to address” said Mr. Windover.

Mr. Windover is currently a Senior Partner and Director in Bain & Company’s Private Equity Practice. John has assessed hundreds of assets in diligence and worked with the management teams of over 25 Private Equity owned portfolio companies to define and implement value creation plans. His work with software and other technology companies has included corporate strategy, product development, salesforce effectiveness and operational improvements. Mr. Windover holds a Ph.D. and M.Sc. in Engineering from the University of California at Berkeley and a B.Sc. in Engineering from Queen’s University where he received the Gold Medal for highest standing across all Engineering programs. Full profile here.

VERTU Capital, formed in 2017, is a Toronto-based private equity firm the focuses on high-potential enterprise software or software-enabled businesses in the Canadian lower mid-market. Founded by Lisa Melchior, a 20+ year private equity professional with a technology track record that includes more than $1 billion of invested capital, VERTU brings deep global private equity experience to high potential Canadian technology businesses seeking transformational growth.