Magnum Capital Fund I Completes Initial Close at US$8M to Address Business Succession Gap
MONTREAL, QC - MAGNUM Capital Partners (MAGNUM), Canada's first women-led private equity fund focused on addressing business succession challenges amongst SMEs, has announced the initial closing of Magnum Capital Fund I, with USD8 million in commitments. MAGNUM will invest in Canada and the United-States using the search fund model. The Fund anticipates additional closings in 2025, up to a maximum of USD20M.
Strong Investor Support for a Niche Strategy
The Fund has received significant interest from a diverse group of individual investors, family offices, and private investment firms in North America and Europe. This support stems from the proven track record of the search fund model and the strong reputation of MAGNUM’s founding partners. Studies indicate the search fund asset class boasts impressive results, with approximately 70% of acquired businesses achieving positive returns and 10% generating returns exceeding 10x. Despite these compelling statistics, this strategy remains an underutilized investment opportunity, particularly within the Canadian market.
Focus On Businesses Facing Succession Challenges
The looming business succession crisis in North America represents a significant opportunity, with over 1 million baby boomer-owned businesses lacking a succession plan. The Fund is strategically positioned to capitalize on this trend, targeting owner-operated companies in need of a successor, particularly within asset-light and service-based sectors. Founding Partner, Enrico Magnani, explains: “We believe in acquiring companies with a strong foundation and untapped potential. We look for businesses that have been held back by a lack of technology adoption or outdated marketing strategies, and we work hand in hand with passionate entrepreneurs to inject new life and drive sustainable growth, building successful businesses for years to come.”
Pioneers in the Search Fund Asset Class
MAGNUM Capital Partners is breaking ground as Canada's first women-led fund in the burgeoning entrepreneurship through acquisition (EtA) space. Founding Partner, Patricia Riopel, is a trailblazer in her own right; in 2023, she became the first woman in Canada to successfully lead and exit a business via the core search fund model, in partnership with her husband, Enrico. Today, the duo is teaming up once again for the launch of Magnum Capital Fund I. Patricia comments: “I have made it my personal mission to promote EtA, especially amongst women. Entrepreneurship requires courage, but it puts you directly in the CEO seat and gives you an opportunity to realize the full potential of your leadership. The world needs more women CEOs.”
About MAGNUM Capital Partners
Magnum Capital Partners (MAGNUM) is a private equity firm specializing in lower mid-market business acquisitions through the search fund model. Founded by Patricia Riopel and Enrico Magnani, MAGNUM invests in exceptional entrepreneurs seeking to acquire and grow established lower mid-market businesses in the US and Canada. Leveraging a deep network within the search fund community and providing active mentorship, MAGNUM aims to create significant value for its investors.
To learn more about Magnum Capital Fund I, please visit www.magnumcp.com or contact us.