Latest News
Altas Welcomes Hannah Currie

Altas is pleased to announce that Hannah Currie has joined the firm as Vice President, Human Resources and Talent.
Prior to joining Altas, Hannah held senior human resources leadership roles at Shopify and Canada Post, where she focused on talent strategy, deployment, and advisory support.
Hannah holds a Bachelor of Arts in Political Science (with Honours) and a Master of Industrial Relations from Queen’s University.

After winning the AFC Championship game that put the team in Super Bowl LVII, star Kansas City Chiefs quarterback Patrick Mahomes gave props to the University of St. Augustine for Health Sciences alum Julie Frymyer, DPT, the Chiefs’ Assistant Athletic Trainer/Physical Therapist.
Read more on the University of St. Augustine for Health Sciences' website
Altas 2022 AGM

The Altas team was thrilled to host the Firm’s first in-person Annual General Meeting since 2019 last week in Toronto. The event featured many of our CEOs, senior executives, and board members discussing Altas’ businesses and the dynamics at play in the current market environment. A huge thank you to our investors who spent the day with us in Toronto, as well as those who tuned in virtually.
Altas Welcomes Paul Emery

Altas is pleased to announce that Paul Emery has joined the firm as a Partner.
Prior to joining Altas, Paul worked at Hellman & Friedman in New York, identifying, evaluating, and executing investment opportunities across a variety of industries, with a focus on healthcare and financial services. Paul began his career in the Global Power and Utilities Group at Morgan Stanley.
Paul holds a Bachelor of Science from the University of Virginia (with Distinction) and an MBA from the Stanford Graduate School of Business (Arjay Miller Scholar).
Altas Welcomes Michael Casson

Altas is pleased to announce that Michael Casson has joined the firm as a Director.
Prior to joining Altas, Michael worked at Bain Capital in Sydney, Australia. While at Bain Capital he focused on private equity investment opportunities across a variety of sectors and worked closely with portfolio company management teams. Previously, he worked at Bain & Company in Toronto where he worked on both commercial due diligence and corporate strategy projects.
Michael holds an A.B. in Physics from Harvard College (cum laude) and an MBA from Harvard Business School (High Distinction).
Altas Welcomes Ryan Thackston

Altas is pleased to announce that Ryan Thackston has joined the firm as Senior Vice President, Investor Relations.
Prior to joining Altas, Ryan spent ten years in investor relations roles at both Trian Partners and Blackstone where he focused on new business development and existing client coverage. Additionally, he served as a strategic advisor to Good Growth Capital, an emerging venture capital firm. He began his career as an Analyst and Associate in investment banking.
Ryan holds Bachelor of Economics from the University of South Carolina and a Master of Finance from Tulane University.
Altas Welcomes Michael Korzinstone

Altas is pleased to announce that Michael Korzinstone has joined the firm as a Partner.
Prior to joining Altas, Michael worked at Cinven in New York where he was a founding member of the North American investment team and led sector origination in technology and tech-enabled business services. Previously he was with Silver Lake for ten years in New York and London, identifying, evaluating, and executing investment opportunities across the technology, technology-enabled, and information services sectors.
Michael holds a Bachelor of Science in Economics from The Wharton School of the University of Pennsylvania with dual concentrations in Finance and Accounting.

Altas Partners is pleased to announce that it has become a signatory to the United Nations-supported Principles for Responsible Investment (UNPRI). UNPRI is recognized as the leading global network for investors who are committed to integrating environmental, social, and governance (ESG) considerations into their investment practices and ownership policies.
“Responsible investing has always been elemental to our objective of consistently generating strong returns, with the least amount of risk, for our partners” said Andrew Sheiner, CEO of Altas. “We are committed to being responsible stewards of our businesses, and we are delighted and proud to become a signatory of UNPRI.”

Altas is pleased to announce that Unified Women’s Healthcare has been selected as a 2022 US Best Managed Company. Sponsored by Deloitte Private and The Wall Street Journal, the program recognizes outstanding U.S. private companies and the achievements of their management teams.
“I am forever grateful to all of our Team Members for their dedication to the mission, vision, and goals of Unified,” said Bob LaGalia, President & CEO at Unified. “I sincerely hope they feel pride for this recognition as we earned this together as a team. If we continue stay true to our values and support one another, we will succeed in making healthcare better.”
The 2022 designees are U.S. private companies that have demonstrated excellence in strategic planning and execution, a commitment to their people and fostering a dynamic, resilient culture, as well as strong financials. This year’s designees continued to propel their businesses forward by prioritizing purpose, investing in their workforces, and demonstrating their commitment to diversity, equity, and inclusion.
Applicants are evaluated and selected by a panel of external judges focused on assessing hallmarks of excellence in four key areas: strategy, ability to execute, corporate culture and governance/financial performance. Unified now joins a global ecosystem of honorees from more than 40 countries recognized by the Best Managed Companies program.
Altas Welcomes Hank Xu

Altas is pleased to announce that Hank Xu has joined the firm as Director, Underwriting.
Prior to joining Altas, Hank worked at Clairvest Group in Toronto, where he evaluated investment opportunities across a variety of industries. Hank started his career in the Investment Banking Division at Credit Suisse in Toronto.
Hank holds a Bachelor of Commerce from Queen’s University (First Class Honours) and earned an MBA with distinction from INSEAD.
Altas Welcomes Adrienne Danson

Altas is pleased to announce that Adrienne Danson has joined the firm as Director.
Prior to joining Altas, Adrienne worked at Advent International where she focused on private equity investments in the technology sector. Previously, Adrienne was an investment banking analyst at Goldman Sachs.
Adrienne holds a Bachelor of Arts in Honours Business Administration from University of Western Ontario, Richard Ivey School of Business (with distinction).
Altas Welcomes Tara Park

Altas is pleased to announce that Tara Park has joined the firm as Senior Associate, ESG Portfolio Support.
Prior to joining Altas, Tara worked at Boston Consulting Group in London, where she focused on strategy and performance improvement across a range of industries. Tara began her career in the Postwar & Contemporary Art Department at Christie’s in London.
Tara studied at McGill University, where she earned a Bachelor of Arts and Science in Biomedical Science and Art History (with Great Distinction), Christie's, London and the University of Glasgow, where she earned a Master of Letters in History of Modern and Contemporary Art (with Merit), and London Business School, where she earned an MBA (with Distinction, Luxury and Retail Scholar).
Altas Welcomes Julie Barac

Altas is pleased to announce that Julie Barac has joined the firm as Manager, Human Resources.
Prior to joining Altas, Julie was a Manager in EY's People Advisory Practice. She advised clients across both private and public sectors on their HR function, including operating model strategy, service delivery design, process improvement initiatives, and digital transformation.
Julie studied at Wilfrid Laurier University where she earned a Bachelor of Arts in Psychology (Dean’s List). Julie also holds a Certified Human Resources Professional designation, a Project Management Professional certification, and a certificate in Human Resources Law from Osgoode Hall Law School.
Altas Welcomes Hannah McGrath

Altas is pleased to announce that Hannah McGrath has joined the firm as Investor Relations Associate.
Prior to joining Altas, Hannah worked in Fundraising and Investor Relations at The Riverside Company in New York, where she was involved in the operational activities of raising capital and oversaw the client relationship management database.
Hannah studied at the University of British Columbia, where she earned a Bachelor of Commerce with a specialization in Finance from the Sauder School of Business (Degree with Honours, Dean's Honour Roll).
Altas Welcomes Aryella Frommer

Altas is pleased to announce that Aryella Frommer has joined the firm as Partner, Head of Investor Relations.
Prior to joining Altas, Aryella spent nine years with Trian Partners where she served in various investor relations and business development roles since 2012. She was named Head of Investor Relations in 2015 and became a Partner of the Firm in 2018. Aryella led Trian’s investor relations, business development and client service efforts, globally. Aryella was also a member of Trian’s ESG Working Group and its Risk and Compliance Oversight Committee. Prior to joining Trian, Aryella served as a Sales and Relationship Management Associate at Goldman Sachs Asset Management and was a Sales Strategy and Business Development Analyst at Neuberger Berman. Aryella began her career as an analyst with Lehman Brothers Holdings in their Investment Management Division.
Aryella graduated with distinction and received a Bachelor of Arts in Political Science (summa cum laude and Phi Beta Kappa) from Barnard College of Columbia University.
Altas Welcomes Jessica Delfino

Altas is pleased to announce that Jessica Delfino has joined the firm as a Principal.
Jessica joins us from Arsenal Capital Partners in New York, where she focused on investment opportunities in the specialty industrials sector and served on the board of directors of multiple portfolio companies. Prior to joining Arsenal, Jessica worked at Deutsche Bank in the Chemicals Investment Banking group in Toronto and New York.
Jessica holds a Bachelor of Commerce from McGill University (Great Distinction) and an MBA from Harvard Business School (George F Baker Scholar).
Leonard Green Partners with Altas to Support the Continued Growth of Tecta America

ROSEMONT, Ill., LOS ANGELES & TORONTO – September 1, 2021 – Tecta America Corporation (“Tecta America” or the “Company”), a national leader in commercial roofing services in the U.S., announced today that Leonard Green & Partners, L.P. (“LGP”) has completed a minority equity investment in the Company. Altas Partners, Tecta America’s principal shareholder, will remain the Company’s majority owner alongside the management team and LGP. Financial terms of the transaction were not disclosed.
Founded in 2000, when ten leading roofing contractors came together to form one, Tecta America has grown into a leading full-service commercial roofing company in the U.S., providing a comprehensive set of commercial roofing services to local and national customers across a variety of industries and end-markets. Tecta America employs more than 4,300 roofing professionals and operates across more than 85 locations in 32 states from coast to coast. The Company provides commercial re-roofing, service and maintenance, and new installation services.
“We are thrilled to continue our outstanding partnership with Altas and welcome our new equity partner, Leonard Green, as we execute our proven strategy,” said Dave Reginelli, Tecta America President & CEO. “During Altas’ ownership, our senior executive team, operating unit presidents, and thousands of dedicated employees have steadily built Tecta’s capabilities and footprint, growing organically and through strategic acquisitions. We are confident that Leonard Green’s experience building leading services companies will enable us to continue to grow in the years to come.”
“Over the course of our partnership, Tecta America has solidified its position as the nation’s premier commercial roofing contractor,” said Scott Werry, a Managing Partner at Altas. “Our objective at Altas is to build market leaders into even stronger and more durable businesses in partnership with talented management teams, and today’s news represents an important milestone in our journey with Tecta. We are proud to be affiliated with Dave and the thousands of Tecta employees, and are excited to be partnering with a firm of Leonard Green’s caliber as we continue to build Tecta in the years ahead.”
“We are grateful for the opportunity to partner with Altas and the Tecta team,” said Evan Hershberg, Partner at LGP. “We have followed Tecta for many years and believe it is an outstanding business. Tecta has a proven track record of quality and delivers on its commitment to exceptional customer service. We look forward to supporting Tecta’s continued growth as the Company executes on the significant opportunities that lie ahead.”
About Tecta America
Tecta America is the nation’s premier commercial roofing contractor with more than 85 locations from coast to coast. Tecta America’s unyielding commitment to quality, expertise, and professionalism have helped it become the industry leader in commercial roofing. Providing commercial re-roofing, service and maintenance, and new installation services, Tecta America offers the responsiveness of a local roofing contractor backed by the resources and stability of a national provider. For more information: http://www.tectaamerica.com.
About Altas Partners
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of our approach include responsible capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. We strive to deliver excellent investment returns for our investing partners. Altas invests on behalf of endowments, foundations, public pension funds and other institutional investors. For more information, please visit www.altas.com.
About LGP
LGP is a leading private equity investment firm founded in 1989 and based in Los Angeles with over $50 billion of assets under management. The firm partners with experienced management teams and often with founders to invest in market-leading companies. Since inception, LGP has invested in over 100 companies in the form of traditional buyouts, going-private transactions, recapitalizations, growth equity, and selective public equity and debt positions. The firm primarily focuses on companies providing services, including consumer, business and healthcare services, as well as retail, distribution and industrials.
Media Contacts
For Tecta America:
Robin Hollerich
rhollerich@tectaamerica.com
For Altas:
Sard Verbinnen & Co
Julie Rudnick / Kevin Siegel
altas-svc@sardverb.com
For LGP:
communications@leonardgreen.com
Altas Partners Completes Majority Investment in Pye-Barker

Altas Partners has completed a majority investment in Pye-Barker Fire (“Pye-Barker” or the “Company”), the leading independent fire protection services company in the U.S.
Founded in 1946, the Company serves more than 80,000 commercial customers through its network of 1,000+ technicians located across 80 branches in 19 states. Service offerings include inspection, testing, maintenance, repair, and installation, with a primary focus on suppression (fire extinguishers and pre-engineered systems) and a secondary focus on sprinklers and alarms.
For more information, please visit www.pyebarkerfire.com
Altas Partners Welcomes Robin Washington to Advisory Board

Altas Partners (“Altas”), a long-term oriented private equity investment firm, today announced the appointment of Robin Washington to the firm’s Advisory Board. A seasoned executive with deep leadership and financial experience across the healthcare and technology sectors, Ms. Washington joins a distinguished group of investors and executives who help Altas identify and invest in high-quality businesses across a range of industries.
“We are excited to welcome Robin to the Altas Advisory Board,” said Andrew Sheiner, Founder and Managing Partner of Altas Partners. “Robin has more than two decades of experience driving the strategic and financial growth of global industry leaders. Her expertise, judgement and insight on a wide array of topics will be immensely valuable for our team and the executives who lead our businesses. "
In addition to her role at Altas as an Advisory Board member, Ms. Washington is currently a member of the Board of Directors of Alphabet, Inc., Honeywell International, Inc., and Salesforce.com. She serves as Chair of the leadership development and compensation committees for Alphabet, Inc. and Chair of the audit committee for Salesforce.com. Previously, Ms. Washington served as Executive Vice President and Chief Financial Officer of Gilead Sciences, Inc., from 2008 to 2019, where she oversaw Global Finance, Facilities and Operations, Investor Relations and the Information Technology organizations. Prior to Gilead, she served as Chief Financial Officer of Hyperion Solutions Inc., which was sold to Oracle Corporation in 2007. For additional background please visit www.altas.com/people.
“I have great admiration for Altas’ talented team of investment professionals and its experience investing in and thoughtfully building great businesses as a true long-term partner,” said Ms. Washington. “I look forward to supporting the firm and working alongside portfolio company management teams as they develop and execute their most important strategic initiatives.”
Katie Taylor Featured in PE Hub “10 Standout Women in PE”

Today is International Women’s Day and for the event Buyouts this week published its annual “Women in PE”. Among the 10 women private equity professionals featured in our 2021 line-up is Michelle Lung, a senior principal with Ontario Teachers’ Pension Plan. Lung told Buyouts she appreciates PE for its “highly creative, intellectually curious and talented individuals,” but she also sees the industry as one of the most demanding “when it comes to achieving work-life balance.”
This theme was taken up in an accompanying story by Chris Witkowsky: “Private equity has a stunning lack of women deal leaders”. Featured in the piece was Kathleen Taylor (pictured above), the former CEO of Four Seasons Hotels and since 2019 chair of Canadian long-term PE firm Altas Partners. Asked by Witkowsky what her hardest career decision was, Taylor said it was when she and her husband decided how they were going to raise a young family.
Taylor said this challenge was ultimately overcome by making “the choices that were right for our family and our careers.” Taylor was lucky, Witkowsky writes, because she worked for a company that had a progressive attitude toward work-life balance. This is not the case for many women in the business and financial worlds – above all in private equity, especially when it comes to women deal-makers.
Women make up 9.9% of partners in the PE industry and 6.4% of managing partners, according to Preqin’s 2020 Women in Alternatives report, Witkowsky notes. Women make up 19.7% of all PE employees, which has grown from 18.8% in 2017.
One glaring gap that still exists in private equity, Witkowsky writes, is at the deal partner level, including on investment committees. It is here where there is a dearth of female voices. Even the biggest firms, which have led the way in improving their processes for more inclusive recruiting, continue to have senior deal leadership dominated by men.
Among the few examples of women at the deal partner level are founders of PE firms. This describes Lisa Melchior, founder and managing partner of Canadian tech PE firm Vertu Capital, who was also interviewed by Witkowsky. The experience of Melchior, a former OMERS Private Equity executive, was a whirlwind during the years when she was having children and raising a family and maintaining a high-flying career of frequent global travel and long hours.
The life of a private equity mom is manageable, Melchior said. But it requires sacrifice and support. Add to this challenge the idea that many women feel the need to be twice as productive as their male colleagues: “I’m going to work twice as hard and be twice as good because I really want to be at the table,” Melchior said. “If you’re twice as good, they can’t deny you being at the table.”
Altas Welcomes Lisa Dymond

Altas Partners is pleased to announce that Lisa Dymond has joined the firm as Head of Talent. In this newly created role, Lisa will lead talent-related matters at Altas and work with our management team partners to drive organizational effectiveness and success at Altas’ portfolio companies.
Lisa joins Altas from the Boston Consulting Group, where she spent 14 years, most recently leading the end-to-end talent strategy and operations for the firm’s Canadian practice. She previously served in a variety of roles at BCG, leading projects across a range of industries, counselling clients globally, and developing thought leadership on issues related to talent and organization. Lisa began her career in public opinion and market research at Pollara Strategic Insights.
Lisa holds a Bachelor of Arts in Political Science from Carleton University (Dean’s List) and a Master of Business Administration from the University of Western Ontario’s Richard Ivey School of Business (Dean’s List, Valedictorian).
Unified Women’s Healthcare Announces New Investment from Altas Partners
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Unified Women’s Healthcare (“Unified” or the “Company”), the leading practice management platform in women’s healthcare, today announced that it has entered into a definitive agreement to add Altas Partners (“Altas”) as a strategic partner. Altas, a long-term oriented investment firm, will become Unified’s largest investor, while Ares Management Corporation (“Ares”), in equal partnership with Altas, will continue to be a significant investor in the Company. As part of the transaction, private equity funds managed by Ares will make a significant new investment in the Company. The investments from Altas and Ares, alongside the physicians who are Unified’s partners, will enable the Company to expand the breadth of services it provides to its affiliated practices, provide capital for growth, and allow the Company to further invest in market-leading value-based care capabilities for providers and payers.
Founded in 2009, Unified’s mission is to empower physicians to positively impact and lead the effort to transform women’s healthcare for the benefit of their patients. Its strategic focus remains on the preservation of clinical autonomy and decision-making at the practice level, while advancing the impact of private practice through value-based care transformation. In addition to offering professional management expertise and innovative technology, Unified seeks to grow its affiliated practices through ancillary services and platform acquisitions. Today, Unified supports more than 1,800 providers in 12 states and the District of Columbia, who collectively care for more than 2 million women each year.
“We are thrilled to welcome Altas as our partner, and alongside Ares and our physician-owners, their collective investment is a testament to the strength of our affiliated practices and the national platform we have built,” said Bob LaGalia, President and Chief Executive Officer of Unified. “Altas and Ares both understand and support our core mission, which is to continue to support outstanding physicians as they improve women’s healthcare. This investment will allow Unified to continue to support our affiliated practices as they attract great physicians, provide best-in-class capabilities, and further our investments in value-based care.”
The transaction is expected to close in December 2020, subject to customary closing conditions and regulatory approvals.
ABOUT UNIFIED WOMEN’S HEALTHCARE
Founded in 2009, Unified Women’s Healthcare is the largest Ob-Gyn physician practice management company supporting more than 1,800 providers across 12 states and the District of Columbia. Unified remains an indispensable source of business knowledge, innovation, and support to empower physicians to make the greatest impact on transforming women’s healthcare for their patients. For more information, visit www.unifiedwomenshealthcare.com.
ABOUT ALTAS PARTNERS
Founded in 2012, Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. The firm manages approximately US$7 billion on behalf of endowments, foundations, family offices, public pension funds, and other institutional investors. The firm’s past and present portfolio companies include DuBois Chemicals, University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Medforth Global Healthcare Education, Capital Vision Services (MyEyeDr.), and NSC Minerals. For more information, please visit www.altas.com.
ABOUT ARES MANAGEMENT CORPORATION
Ares Management Corporation is a leading global alternative investment manager operating integrated businesses across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Ares Management’s global platform had approximately $179 billion of assets under management as of September 30, 2020 with more than 1,400 employees operating across North America, Europe and Asia Pacific. For more information, please visit www.aresmgmt.com.
Altas Welcomes Akshay Kumar

Altas Partners is pleased to announce that Akshay Kumar has joined the firm as a Principal.
Akshay joins Altas from Blackstone, where he focused on investment opportunities across a wide variety of industries. Prior to joining Blackstone, Akshay worked at TPG in San Francisco, focusing on investment opportunities in the consumer, retail, and healthcare sectors. Akshay holds a Bachelor of Arts degree in Honours Business Administration from the University of Western Ontario’s Richard Ivey School of Business (Ivey Scholar, Gold Medalist) and a Master of Business Administration from Harvard Business School.
Altas Welcomes Michael Shay

Altas Partners is pleased to announce that Michael Shay has joined the firm as Vice President of Portfolio Support. In this newly created role, Michael will focus on providing operational and strategic support to enhance the value of Altas’ businesses.
Prior to joining Altas, Michael worked at Scotiabank, where he supported an enterprise-wide transformation program, and at Bain & Company, where he led projects across private equity due diligence, corporate strategy, and performance improvement.
Michael holds a Bachelor of Arts in Honours Business Administration from the Richard Ivey School of Business (with Distinction, Ivey Scholar), a Bachelor of Engineering Science in Electrical Engineering from the University of Western Ontario (with Distinction), and a Master of Business Administration from Northwestern University (with Distinction).
Playing the long game with private equity assets

Andrew Sheiner worked for 17 years at Onex Corporation, a public company in Canada that has several private investment arms. One of those is Onex Partners, a large-cap-focused group he helped establish in 2001.
It was during his time at Onex that Sheiner learned the importance of flexibility in investment hold periods. The traditional private equity hold period – generally from three to five years – was established in the early days of the industry, in the 1970s and 80s. The structure that evolved was a 10-year fund life, with up to five years for deploying capital and five years for selling investments.
But the rigidity of that structure could also be frustrating, and Sheiner said he often heard concerns from limited partners about the quick investment/exit cycle of traditional private equity.
“An astute investor said to me, ‘This business is crazy; we invest in your funds, we buy businesses through those funds, you then sell them to another fund – we’re then invested in that fund.’ There’s a lot of friction in that transaction. And that would seem suboptimal and not ideal for management teams either,” Sheiner says in an interview.
Sheiner had the benefit of flexibility at Onex and decided, on formulating a strategy for his own shop, that he would apply those lessons to the new venture.
His firm, called Altas Partners, was founded in 2012 on three principles: the firm would be extremely discerning about its acquisitions; it would focus on high-quality businesses; and it would apply time flexibility to its investments, rather than abiding by a strict deadline.
Altas is happy to buy only one or two businesses a year, and hold those investments, if appropriate, for a decade or longer. It can also sell investments earlier if that makes better financial sense, Sheiner says. “We understand that those businesses are precious and hard to come by and if we have the good fortune to own one, we and our partners would feel it’s unfortunate if we had to sell prematurely,” Sheiner says.
The firm closed its debut fund in 2016 on $1 billion, and its second fund on $3 billion last year. Altas acquired eight businesses so far, investing about $4 billion of equity, and sold two of them. “That’s consistent with what we established with our investors and the strategy we set out to pursue, which is not to be rigid. Rigidity in time horizon is not helpful as an owner and investor,” he says.
Altas is an example of a growing desire on the part of GPs to break out of the confines of the traditional private equity fund structure.
For certain companies, GPs would like more time to see their plans through; to make sure they are not getting out of the company while there is still more growth to capture; and to avoid the pressure of selling at the wrong time just for the sake of delivering liquidity back to investors.
“We’re hearing with some consistency GPs saying, ‘We’re sick of selling our best assets to other private equity firms for them to hold it for the next five years and double or triple their money, when we could have held it,” says an LP who has seen this trend. “The challenge is balancing the need for liquidity.”
LONG DEPLOYMENTS
There’s another factor at play as well: GPs are taking much longer to deploy capital into new investments in the high-priced environment. The total number of deals done over the past five years is down 25 percent from 2014, according to Bain & Co. The calculation becomes: rather than make a bet on something new and uncertain, why not stick with an asset you know intimately, that you’ve grown and improved, with a future path to prosperity that you helped design?
These are the sorts of considerations GPs must contemplate, and LPs appear to be on board. Investors play a vital role in the evolution of this longer-hold strategy, whether it involves raising funds with long-hold attributes, or investing in existing portfolio companies across funds that require investor approval. Without the approval of the investor community this longer-hold trend would not likely be growing as quickly as it is today.
“Over time LPs have seen that, ‘Wow, you’re selling this good company out of your portfolio, and we’re buying it elsewhere in our portfolio, how does that help me? I would have been better off if you had held it another three years,’” says Adam Howarth, managing director and head of portfolio management Americas at Partners Group.
“People would have been delighted 15 or 20 years ago to hold great companies longer if they had the opportunity. But the industry perhaps hadn’t evolved to the point where managers and investors were like-minded around the value of doing that,” Sheiner says.
Buyouts spoke to dozens of sources in the market, including limited partners, investment bankers and GPs, about the growing trend of PE managers holding certain assets longer. The consensus was that the trend is real, but not everyone agreed on the risks and benefits of the strategy.
LPs especially gave mixed reviews: would longer hold periods ultimately lead to stronger returns? Or were they just a way for some larger firms to build revenue and assets under management? What’s clear, though, is that there is a paradigm shift in the industry, where all parties agree that, for some investments, the traditional PE hold period is not appropriate. This will likely help shape private equity as it continues to evolve. “If I still believe in the future of an asset and new deals are scarce, why not stay invested in the asset,” says Hugh MacArthur, partner at Bain & Co.
MEAT ON THE BONE
Longer investment holds in private equity are not the norm. In fact, hold periods in general are falling. Median hold periods fell to 4.5 years for deals exiting in 2018, compared with 5.9 years for investments sold in 2014, according to Bain & Co’s 2019 Global Private Equity Report.
“The peak in 2014 was driven by many assets invested just ahead of the global financial crisis that ended up being held in portfolios longer than expected/planned,” MacArthur says.
But with certain assets, GPs are getting much more creative than simply shopping them through an auction. This quicker turnaround likely has something to do with the amount of capital flowing into private equity funds, and the prospect of a firm being able to sell a business at a robust price.
North American private equity and mezzanine funds raised $274.9 billion as of November, up from last year’s tally of $178.7 billion around the same time. And purchase price multiples generally remain high, at an average of 11x to 12x across all industries, Buyouts reported in the third quarter.
What’s more, equity checks in deals have increased to 50-60 percent from 20-35 percent, meaning firms are taking even more risk in individual deals, Sumit Rajpal, global co-head of Goldman Sachs’ merchant banking division, told Buyouts in the third quarter.
“If you take this angle or perspective that there’s more uncertainty about where we are in the economy – and if you’re trying to reduce your risk – finding something you know well makes sense,” Ian Fowler, co-head of Barings Global Private Finance Group previously tells Buyouts. “Especially if you think there’s more meat on the bone.”
BREATHING ROOM
DuBois Chemicals is a nearly 100-year-old company that supplies specialty chemicals to help facility operations in sectors like manufacturing, food and beverage, paper and pulp and water treatment.
Around 11 years ago, DuBois’ owner at the time, JohnsonDiversey, decided to carve it out to raise money. DuBois’ current CEO, Jeff Welsh, was helping JohnsonDiversey package up assets for sale, and worked to bring in potential buyers for DuBois.
Eventually Riverside Co. emerged as the buyer for DuBois, with Welsh moving in as CEO. Riverside held the company until 2012, when it sold to Aurora Capital. Aurora owned it until 2017, when Jordan Co. and repeat investor Riverside acquired DuBois, Welsh says in an interview.
Finally, earlier this year, Altas acquired DuBois, a private equity owner that, for the first time, brought flexibility around the length of its hold period. “It’s important to have that optionality, to be able to hold a business if you go into a situation where it might be better to hold it for a longer period of time,” Welsh says. That means being able to hold through a down cycle, when the business may underperform, and sustain it until it emerges into a better environment.
Welsh adds that the long-holding mindset should not be totally tied to anticipated investment holds. “Potentially there’s the option of investing in things that are going to have a little longer time horizon than they would in sort of a traditional three-to-five year plan,” Welsh says. “You have to be a little cautious as a portfolio company in lulling yourself into thinking this will undoubtedly be a long-term hold.”
While DuBois has grown over its private equity ownership years, it only has around 8 percent market share, Sheiner says.
Outside of a long-hold option built into a fund structure, like Altas or Boston-based Cove Hill Partners, GPs are achieving longevity through traditional M&A processes. Many GPs retain minority stakes in businesses they are selling to be able to continue capturing a company’s growth. Others are taking an even more aggressive approach by re-investing in existing portfolio companies held in older funds.
Late last year, Nordic Capital sold its stake in eResearchTechnology out of an older fund, and at the same time re-invested through its new fund for a smaller interest. Nordic sold down its 70 percent stake in ERT to hold an equivalent stake alongside Paris firm Astorg as part of the investment, announced in October.
GTCR last year re-acquired AssuredPartners less than four years after selling the company to Apax. GTCR owned the company from 2011 to 2015 before exiting for a 4x return, Wall Street Journal reported in February 2019.
Growth investor TA Associates recently launched a unique fund that would give it a way to retain interests in companies it was selling where it saw more room for growth.
The fund targets companies in TA’s portfolio that have achieved certain performance goals. The beauty of the strategy is that while giving the firm more time with growing assets, it also allows TA to deliver proceeds back to investors in older funds.
TA Select Opportunities Fund is targeting $1 billion, a fundraising goal several investors expect the firm to hit.
“[TA’s fund represents] the ability to… continue to play in those assets where they think having longer hold periods is beneficial but at the same time, taking some capital off the table and derisk it,” according to an investor who committed to the fund, who requested anonymity.
THE LP VIEW
Sources say the trend toward longer-term holds is being driven by limited partners. For LPs, longer hold periods could mean less cost, especially as related to those costs involved in transactions, sources said. Each time a company turns over, there are fees related to the deal, which sources described as “frictional” costs.
“The friction in these things is tremendous,” DuBois’s Welsh says. “Every time we’ve sold this business over the years, there’s a 5, 6, 8 percent friction rate where you’re spending that in transaction costs. I’ve talked to LPs who say, ‘What have I gained? I’ve bought and sold this asset and had 5, 6 or 8 percent come out of it as friction.’”
But LPs also have concerns about how these longer holds are executed, especially when it comes to a GP’s new fund buying companies out of older funds.
Cross-fund investments cause a bit of consternation on the part of LPs because of an inherent conflict: A GP’s new fund wants to pay a low price for the company, while the old fund wants to sell for as much as possible. It’s essential, then, in cross-fund investing, for a GP to get a market value from an external investor, sources said.
“[The GP] has to go through various gymnastics to get that socialized [with investors] and approved through the advisory board and figure out a way to get pricing that’s deemed fair to all parties involved,” according to Scott Reed, co-head of private equity USA at Aberdeen Standard Investments.
One way this could happen is the GP brings in an external minority investor to share control and contribute equity into the deal, Reed says. “This helps provide a third-party external valuation of the pricing in which the transfer occurs,” he said.
Not every LP is enamored with the idea of private equity managers holding investments longer. “There’s something to be said for the discipline you get with traditional fund structure; you know you’ve got five-to-seven years with assets, and then it’s time to move on,” the LP said. “There’s very few businesses that compound at 15 to 20 percent returns forever.”
Risks include a company that is being held longer suddenly encountering a slowdown that cuts into profitability. The GP will have to spend material time and resources on the company rather than working to deploy capital into new investments.
“A large portion of fund LPs would say they don’t want that distraction,” Reed says.
Altas Welcomes Nick Mancini

Altas Partners is pleased to announce that Nick Mancini has joined the firm as a Director.
Prior to joining Altas, Nick worked at TPG in San Francisco, where he evaluated investment opportunities across a variety of sectors. Nick began his career in the Technology Investment Banking group at Morgan Stanley in New York. Nick earned a Bachelor of Science degree with majors in Finance, Accounting, and Economics from Boston College (summa cum laude) and has a Master of Business Administration from Harvard Business School.
Altas Partners Closes US$3 Billion Fund

Altas Partners (“Altas”), a long-term oriented investment firm, announced today the final closing of its second fund, Altas Partners Holdings II LP (“the Fund”), with US$3 billion of limited partner capital commitments. The Fund closed at its hard cap and was oversubscribed.
“We are grateful for the enthusiastic response to the Fund,” said Andrew Sheiner, Founder and Managing Partner of Altas, “and we remain singularly focused on creating lasting value for our investors as an engaged owner of high-quality businesses.”
Altas differentiates itself through a distinctive approach to investing, building its portfolio slowly and carefully over time and enjoying a flexible time horizon as an owner. With the Fund, Altas will continue to execute the firm’s strategy of investing in one or two high-quality, market-leading businesses each year.
“We are fortunate to enjoy the support of a wonderful group of global partners,” added Katie Taylor, Chair of Altas. “We look forward to building upon our strong foundation in the years ahead, and to enhancing our reputation as a partner of choice for management teams.”
About Altas Partners
Founded in 2012, Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. The firm manages approximately US$7 billion on behalf of endowments, foundations, family offices, public pension funds, and other institutional investors. The firm’s past and present portfolio companies include DuBois Chemicals, University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Medforth Global Healthcare Education, Capital Vision Services (MyEyeDr.), and NSC Minerals. For more information, please visit www.altas.com.
WSJ Reports on Altas Partners Fund II Closing

Andrew Sheiner’s firm generally makes two investments a year, which it can hold for as long as 15 years
Altas Partners, a firm founded on the idea that some private-equity investments can benefit from having more time to ripen, has amassed $3 billion for its second fund.
The vehicle, Altas Partners Holdings II LP, was oversubscribed and closed at its hard cap, the Toronto-based firm said Monday. The new fund was raised with the help of Park Hill Group, according to a Securities and Exchange Commission filing.
At $3 billion, Altas’s new fund is triple the size of its maiden offering, which closed at $1 billion in 2016.
Altas, which was founded in 2012 by former Onex Corp. executive Andrew Sheiner, is one of the pioneers of longer-term private-equity investing. The firm can hold companies it buys for as little as five years, which is standard for private-equity investments, or as long as 15 years, which is beyond the 10-to-12-year maximum hold time typical for private-equity managers.
The firm’s second vehicle will continue the strategy of the first fund, said Mr. Sheiner, who is the firm’s managing partner as well as founder. Altas generally makes two investments a year, targeting deals worth $250 million to $1 billion in equity in sectors including industrials, health-care and education. The debut fund made five investments.
Longer-term investing has become more common over the past decade, as firms and investors have come to see benefits in having the option of a longer hold period. Longer-term funds also typically charge lower management fees than traditional buyout vehicles.
Firms that have launched longer-term funds in recent years include Vista Equity Partners, CVC Capital Partners, KKR & Co. Inc. and Blackstone Group Inc. So far this year, 15 longer-term funds have closed on a total of $5.3 billion, according to data provider Preqin Ltd.
Altas’s latest fund has already made its first investment, backing specialty chemical supplier DuBois Chemicals Inc. in a deal signed over the past summer. Earlier this year it closed on the $400 million purchase of the University of St. Augustine for Health Sciences, an educator of physical and occupational therapists with campuses in California, Texas and Florida.
LAURA COOPER AND CHRIS CUMMING, THE WALL STREET JOURNAL
Buyouts Reports on Altas Partners Fundraise

LONG-TERM INVESTOR ALTAS PARTNERS CLOSES FUND II AT $3 BLN HARD CAP
- Fund II is triple the size of its 2016 predecessor
- More than 50 LPs signed on, a source said
- Altas Partners was an early adopter of long-term investing
Altas Partners, a pioneer of long-life investing, has wrapped up its second fund at a hard cap of $3 billion, Buyouts has learned.
Altas Partners Holdings II is triple the size of its predecessor, which secured $1 billion in 2016. Prior to Fund I, the Toronto-based private equity firm invested deal-by-deal by partnering with select investors.
Fund II was backed by more than 50 limited partners, a person with knowledge of the matter told Buyouts. New and returning investors included endowments and foundations, family offices and pension plans, the source said.
Individual investors in Fund II included Louisiana State Employees’ Retirement System, which committed $100 million; San Mateo County Employees’ Retirement Association, which committed $10 million; and School Employees’ Retirement System of Ohio, which committed $50 million.
Altas declined to comment on the details of its fundraising activity.
Altas was founded in 2012 by Andrew Sheiner, a former senior Onex Corp executive, to make control investments in hard-to-replicate businesses. Unlike other PE investors, which typically hold portfolio assets for three-to-five years, the firm invests with an indefinite horizon, focusing on owning assets long enough to generate maximum value.
Altas picks only one or two companies for acquisition per year, investing $250 million to $1 billion or more in each. This deliberative deal pace is reflected in the sourcing process, which averages 11 months from initial engagement to completion.
Fund II will continue this strategy, Sheiner told Buyouts in an interview.
Altas was an early adopter of long-life investing, a trend that has grown in popularity in the PE industry. A survey published this month by Dechert found 51 percent of general partners are exploring a long-hold fund, up from 32 percent last year, while 27 percent have already established a vehicle.
Sheiner said Altas will continue to differentiate itself in a potentially growing field. “Our model is to be a singularly-focused investor and owner, with one team and one strategy,” he said. “This allows us to be discerning and enjoy the flexibility to own each business for five years or 15 years, whatever is appropriate.”
Altas has made eight investments since inception. Its most recent is DuBois Chemicals, a Cincinnati-based specialty chemical solutions provider acquired in September from Jordan Company.
Altas also this year sold two portfolio companies, among them MyEyeDr, a Vienna, Virginia-based vision care practices network. It was acquired by Goldman Sachs in August, generating a return of about 3.5x, Buyouts reported.
In addition, Altas in January sold NSC Minerals, a Saskatoon, Saskatchewan-based salt products maker. The buyer was Kissner Group, which is backed by Metalmark Capital and other investors.
Altas has been adding to its investment team of late. Recent hires include Partner David Brent, who joined in 2018 from Apollo Global Management. The firm also this year appointed Kathleen Taylor, the former CEO of Four Seasons Hotels and Resorts, to the new position of chair.
Other senior team members include Managing Partner Scott Werry and Partners Christopher McElhone, Paul Nicoletti and Damon Conway.
Fund II’s close brings total commitments managed by Altas to about $7 billion.
KIRK FALCONER, PE HUB; BUYOUTS
Altas Partners Completes Acquisition of DuBois Chemicals
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Altas Partners has completed its previously announced acquisition of DuBois Chemicals Inc. (“DuBois”), a premier provider of customized and value-added specialty chemicals solutions and services to more than 15,000 customers.
Founded in 1920, DuBois researches, develops, manufactures, and supports a broad range of customized specialty chemical products and related equipment. DuBois is a solutions provider to its customers, helping them address their significant performance, quality, cost, safety, and compliance issues and challenges.
Headquartered in Cincinnati, Ohio, DuBois leverages its proprietary chemistries and unique on-site service and support capabilities to offer a compelling value proposition by reducing downtime, minimizing defects, and extending equipment life for its customers’ applications. As a result, DuBois maintains strong loyalty across a diverse customer base that relies on its technical expertise and broad suite of product solutions to ensure their machinery, processes, and systems run seamlessly.
For more information, please visit www.duboischemicals.com.
Altas Partners Completes Sale of Capital Vision Services
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Altas Partners today announced that it has completed the sale of Capital Vision Services, LP (“CVS”), a leading provider of management services to vision care practices. CVS provides its affiliated, independent MyEyeDr. optometrists with a complete array of financial, marketing, human resources, and accounting services, along with managed care credentialing and claims processing.
CVS was sold to West Street Capital Partners VII, a fund managed by the Merchant Banking Division of Goldman Sachs. Financial terms of the transaction were not disclosed.
ABOUT ALTAS PARTNERS
Founded in 2012, Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. The firm manages more than $6 billion on behalf of endowments, foundations, public pension funds, and other institutional investors. The firm’s past and present portfolio companies include University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Medforth Global Healthcare Education, Capital Vision Services, and NSC Minerals. For more information, please visit https://www.altas.com.
FOR FURTHER INFORMATION:
Aisha Sánchez
+1 (416) 306-9800
asanchez@altas.com
WSJ Reports on Altas Acquisition of DuBois Chemicals

Deal comes as investor approaches close of second flagship fund
Long-term investor Altas Partners has agreed to acquire specialty chemical supplier DuBois Chemicals Inc. from owner Jordan Co., according to people familiar with the deal.
The deal with Altas would mark an exit for Jordan Co., which bought the company in 2017. Since then, it has grown through acquisitions, including the purchase of BHS Specialty Chemical Products, a manufacturer and distributor of chemicals, and at least four deals in recent years.
The terms of the deal couldn’t be learned.
DuBois, based in Sharonville, Ohio, provides industrial chemicals for water treatment, aerospace uses, auto wash and detailing, manufacturing and transportation. It serves more than 15,000 customers globally.
The investment comes as Altas nears the final close of its second long-term investment vehicle, which has a $3 billion hard cap, according to one of the people. Altas raised $1 billion for its previous fund, which it closed in 2016, saying at the time it could hold portfolio companies as long as 17 years.
The Toronto-based private-equity firm typically aims to hold companies longer than the standard period of roughly five years. Altas generally makes one or two new deals a year.
Earlier this year, it closed on a $400 million purchase of the University of St. Augustine for Health Sciences, an educator of physical therapists and occupational therapists with campuses in California, Texas and Florida.
Altas also had a large exit earlier this year when it agreed to sell Capital Vision Services LP—which manages MyEyeDr. Optometry practices—to the merchant banking division of Goldman Sachs Group Inc. The deal was valued at $2.7 billion, including debt, according to a Wall Street Journal report. Altas had invested in the company alongside Canadian pension fund Caisse de dépôt et placement du Québec.
LAURA COOPER, THE WALL STREET JOURNAL
Altas Partners to Acquire DuBois Chemicals
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Altas Partners (“Altas”), a long-term oriented investment firm, today announced it has signed a definitive agreement to acquire DuBois Chemicals, Inc. (“DuBois” or the “Company”), a leading specialty chemical supplier, from The Jordan Company, L.P. (“TJC”). Financial terms of the transaction were not disclosed.
DuBois is a premier provider of customized and value-added specialty chemicals solutions and services to a global customer base. The Company combines local high-touch technical service, leading R&D capabilities, customized equipment solutions, and deep knowledge of manufacturing processes to deliver reliable, mission-critical, and innovative products to more than 15,000 customers globally across a spectrum of industries and end markets. DuBois’ full suite of solutions and services brings leading, reliable technologies that reduce chemical, water, labour, and energy costs for customers and support their operations to improve quality and efficiency.
“We chose to partner with Altas because their team shares our conviction and excitement regarding the long-term opportunity for DuBois, making the firm an ideal partner as we enter our next phase of growth,” said Jeff Welsh, President and CEO of DuBois. “With Altas’ support, we look forward to continuing the development of the business through both organic growth and continued selective acquisitions. We greatly appreciate the support we’ve received from The Jordan Company, and we thank them for their guidance and partnership.”
“Over its 99-year history, Dubois has built its position as a leading international provider of specialty chemical solutions, through a focus on innovation, quality production, and customer service,” said David Brent, a Partner at Altas. “For Altas, this investment is the culmination of a multi-year effort to identify a world-class platform and team that we can partner with in the specialty chemicals industry. We look forward to supporting Jeff and the DuBois team as they continue to build on the company’s success and leadership in the coming years.”
“We are proud of the growth that DuBois has achieved during our ownership period. DuBois’ tremendous advancements are a testament to Jeff’s strong leadership and the company’s outstanding management team. We expect Altas will be a great next partner for DuBois and look forward to watching the company’s continued success,” said Ian Arons, a Partner at TJC.
The transaction is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.
ABOUT ALTAS PARTNERS
Founded in 2012, Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. The firm manages more than $6 billion on behalf of endowments, foundations, public pension funds, and other institutional investors. The firm’s past and present portfolio companies include University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Medforth Global Healthcare Education, Capital Vision Services, and NSC Minerals. For more information, please visit https://www.altas.com
ABOUT DUBOIS CHEMICALS
Founded in 1920, DuBois is a market-leading full-service provider of customized specialty chemical solutions. The company researches, develops, manufacturers, and supports a broad range of customized specialty chemical products and related equipment to provide solutions to customers’ most challenging performance, quality, cost, safety, and compliance issues for a variety of industries. Headquartered in Cincinnati, Ohio, the company leverages its proprietary chemistries and unique on-site service and support to offer a compelling value proposition by reducing downtime, minimizing defects, and extending equipment life for its customers’ most-critical applications. As a result, DuBois maintains strong loyalty across a diverse customer base that relies on its technical expertise and broad suite of product solutions to ensure their machinery, processes, and systems run seamlessly. For more information, please visit www.duboischemicals.com.
ABOUT THE JORDAN COMPANY
The Jordan Company, founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $11 billion since 1987 and a 37-year track record of investing in and contributing to the growth of many businesses across a wide range of industries including Business Services, Consumer & Healthcare, Financial Services, Industrials & Distribution, Telecom, Technology & Utility and Transportation & Logistics. The senior investment team has been investing together for over 20 years and is supported by the Operations Management Group, which was established in 1988 to initiate and support operational improvements in portfolio companies. Headquartered in New York, TJC also has an office in Chicago. For more information, please visit www.thejordancompany.com.
Andrew Sheiner Interviewed at SuperReturn on the Current State of Private Equity

Andrew Sheiner explores the current state of the private equity industry, the mix of economic factors that could trigger a downturn, and the precautions managers need to take as we get closer to the end of the cycle.
Altas Appoints Kathleen Taylor as Chair

Altas Partners (“Altas”), a long-term oriented private equity investment firm, today announced the appointment of Kathleen (“Katie”) Taylor to the newly created position of Chair of Altas Partners. “The appointment of Katie marks an important milestone in the ongoing evolution of Altas,” said Andrew Sheiner, Founder and Managing Partner of Altas Partners. “Katie brings tremendous leadership experience to the firm as well as deep expertise in the areas of organizational effectiveness and talent management. These capabilities will strengthen our firm and help us deliver on our commitment to be excellent partners to our management teams as we work to build great companies together.”
In addition to her role at Altas, Ms. Taylor currently serves as Chair of the Royal Bank of Canada, Vice Chair at The Adecco Group and a director of Air Canada, the Canada Pension Plan Investment Board, and MyEyeDr., an Altas portfolio company. Ms. Taylor is involved with several not-for-profit organizations including as Chair of the Board of the SickKids Foundation. Previously, Ms. Taylor was President & CEO of Four Seasons Hotels and Resorts where she was instrumental in building Four Seasons’ global brand, service culture and international portfolio of luxury properties over a career that spanned more than 23 years. For additional background please visit https://www.altas.com/#team.
“Altas’ focus is to own and build great companies, and that resonates with me very much,” said Ms. Taylor. “As a long-term Altas Advisory Board member, I’ve come to appreciate first-hand the firm’s strong value proposition and its appeal to business owners and management teams seeking a thoughtful and long-term oriented partner. I am honoured to be named Chair of Altas Partners and am delighted to be joining its wonderful team.”
Buyouts Reports on the Appointment of Katie Taylor as Chair of Altas

Kathleen Taylor, the former CEO of Four Seasons Hotels and Resorts, took on the role this month, Managing Partner Andrew Sheiner told Buyouts.
As part of the job, Taylor will provide advice and support to companies in the portfolio, Sheiner said, drawing on her more than three decades of experience as a senior executive.
“We expect Katie will be an excellent resource, sounding board and thought partner for our CEOs as they manage and grow their businesses,” he said.
The appointment builds on Taylor’s prior four years as a member of Altas’ advisory board, a role that enabled her first contributions to the portfolio.
In 2016, Taylor became a key adviser to Sue Downes, co-founder and CEO of MyEyeDr, a U.S. network of optometry and eye-care practices. Managed by Capital Vision Services, the business was acquired a year earlier by a group led by Altas and Caisse de dépôt et placement du Québec.
Deepening her involvement in 2017 by joining MyEyeDr’s board, Taylor supported Downes and the management team on a range of issues and initiatives, including long-term strategy, organizational effectiveness and talent acquisition.
This month, Goldman Sachs agreed to acquire MyEyeDr, reportedly for US$2.7 billion. The deal is expected to generate a return of about 3.5 x for Altas, Buyouts reported.
Trailblazer
Joining Altas’ team is the latest milestone in Taylor’s career, which includes a record of blazing trails for women in the corporate world.
Starting out as a lawyer, Taylor was hired in 1989 by Four Seasons and over a 24-year tenure rose in the luxury hotel chain’s management ranks. In 2007, she became president and COO, and in 2010, CEO, making her one of only a few Canadian female executives to hold the top C-suite job, then and today.
Taylor broke another glass ceiling in 2014 with her appointment as chair of Royal Bank of Canada. She was the first woman to lead the board of a major bank in Canada and one of a handful to do so globally.
Taylor also serves as vice-chair of Adecco Group and as a director of Air Canada and Canada Pension Plan Investment Board.
Sheiner, a former senior Onex Corp executive, founded Altas in 2012. An early adopter of the long-life philosophy in private equity, the Toronto firm focuses on buying hard-to-replicate companies and holding them indefinitely.
Taylor told Buyouts Altas’ strategy “resonates with me very much,” noting she has “come to appreciate first-hand” the firm’s appeal to owner-operators “seeking a thoughtful and long-term oriented partner.”
Other senior members of Altas’ team include Managing Partner Scott Werry and Partners Christopher McElhone, Paul Nicoletti, David Brent and Damon Conway.
KIRK FALCONER, PE HUB; BUYOUTS
Altas Partners Announces Agreement to Sell Capital Vision Services

West Street Capital Partners VII, a fund managed by the Merchant Banking Division of Goldman Sachs (“GS MBD”), Altas Partners (“Altas”) and Caisse de dépôt et placement du Québec (“CDPQ”) announced today their entry into a definitive agreement under which GS MBD will acquire Capital Vision Services, LP (“CVS”) from Altas and CDPQ. CVS, which provides management services to MyEyeDr. O.D.’s (“MyEyeDr.” or the “Company”) optometry practices, supports affiliated independent MyEyeDr. optometrists and their practices with a complete array of financial, marketing, human resources, and accounting services, along with managed care credentialing and claims processing. MyEyeDr. practices offer patients personalized and essential eye care services, an unmatched selection of prescription eyeglasses and sunglasses, and standard and specialty contact lenses to meet their unique vision, health and wellness needs.
“We are thrilled to partner with GS MBD as we turn to the next chapter of our growth and champion a new path for eye care,” said Sue Downes, Co-Founder and CEO of CVS. “GS MBD’s funds have a long and established track record of successfully scaling healthcare companies, and we look forward to leveraging their expertise as we provide even more patients access to the latest in vision care technology.”
“We also thank Altas and CDPQ for their partnership and invaluable support these last several years,” added Downes. “By leveraging their operational expertise and strategic insight, we were able to significantly enhance our capabilities, processes and systems and strengthen our senior management team with the addition of multiple key hires.”
“We are very excited to announce this transaction and mark the beginning of the next chapter of CVS’ success,” said Jo Natauri, Global Head of Healthcare Investing for the Goldman Sachs Merchant Banking Division. “We look forward to partnering with this talented management team and building on their foundation of commercial and operational excellence. CVS has a proven consumer-directed healthcare model that champions optometrists and promotes eye health. We are proud to support the Company’s continued growth and pleased about this new investment, which expands our portfolio in the healthcare services sector.” “We are extremely proud to have partnered with Sue Downes, David Sheffer and the entire CVS management team during this time of tremendous growth and development for the Company,” said Scott Werry, a Managing Partner of Altas. “At the time of our investment in 2015, CVS managed 165 practices in 7 states; by the end of this year, the Company’s footprint will have grown to 575 practices in 18 states nationwide. CVS is well ahead of schedule in achieving our strategic vision for the business, which was focused on significantly enhancing its scale and scope while delivering improved patient outcomes across its affiliated practices.”
“CVS achieved tremendous success in growing the Company during the past few years. This is now a world-class organization that is poised for continued growth in the coming years,” said Stéphane Etroy, Executive Vice-President and Head of Private Equity at CDPQ. “It is a great experience to work alongside an exceptional management team such as the one leading CVS and support them with the right mix of strategic input and tools that enable them to thrive.”
The transaction is expected to close in the third quarter of 2019 subject to customary closing conditions and regulatory approvals.
About Capital Vision Services, LP Founded in 2001, Capital Vision Services, which provides management services to full-service optometry practices, is a market leader. Its affiliated MyEyeDr. practices offer patients exceptional full-service vision care, a wide selection of prescription eyeglasses and sunglasses, and standard and specialty contact lenses. Capital Vision Services provides affiliated, independent optometrists with a complete array of financial, marketing, human resources and accounting services, along with managed care credentialing and claims processing.
For more information: https://www.capitalvisionservices.com/
About Goldman Sachs Merchant Banking Division Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division is the primary center for the firm’s long-term principal investing activity. With nine offices across seven countries, Goldman Sachs Merchant Banking Division is one of the leading private capital investors in the world with equity and credit investments across corporate, real estate and infrastructure strategies. Since 1986, the group has invested approximately $180 billion of levered capital across a number of geographies, industries and transaction types.
About Altas Partners Founded in 2012, Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. The firm manages more than $6 billion on behalf of endowments, foundations, public pension funds and other institutional investors. The firm’s past and present portfolio companies include University of St. Augustine for Health Sciences, Tecta America, Hub International, PADI, Capital Vision Services, Medforth Global Healthcare Education, and NSC Minerals.
For more information: https://www.altas.com
About Caisse de dépôt et placement du Québec Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As of December 31, 2018, it held CA$309.5 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages. Media Contacts:
For Goldman Sachs Merchant Banking Division: Leslie Shribman U.S.: +1 (212) 902 5400
For Altas Partners: Sard Verbinnen & Co. Julie Rudnick / Kevin Siegel
Wall Street Journal Reports on Altas Sale of Capital Vision Services

The merchant-banking division of Goldman Sachs Group Inc. is buying the company that manages MyEyeDr. optometry practices from private-equity firm Altas Partners LP and Canadian pension fund Caisse de dépôt et placement du Québec.
The deal for Capital Vision Services LP is valued at $2.7 billion, including debt, and is expected to be announced on Monday, according to people familiar with the matter.
Capital Vision supports independent optometrists and practices affiliated with the MyEyeDr. brand by providing them with financial, marketing, human-resources and accounting services, in addition to helping them with things like claims processing. MyEyeDr. practices offer vision-care services and sell prescription eyeglasses, sunglasses and contact lenses.
By the end of this year, the company will have grown to 575 practices in 18 states, up from 165 in seven states at the time it was bought by Altas in 2015. Under the leadership of co-founder and Chief Executive Sue Downes, the company has also expanded medical services, such as retinal imaging, and the variety of frames it offers to practices.
Altas, which bought the business with CDPQ for $775 million, was ahead of schedule on its growth plans and ran an auction process after receiving unsolicited interest in the company, one of the people said.
For private equity, the model of rolling up independent health-care providers in areas such as optometry, dentistry, veterinary- and physical-therapy services under one operator has been a favored strategy.
Based in Toronto, Altas manages more than $6 billion of assets. Its strategy gives it the flexibility to hold businesses for longer than the typical buyout firm does. Its founder, Andrew Sheiner, left private-equity firm Onex Corp. to start the firm in 2012.
Goldman’s merchant-banking division manages equity and credit investments across corporate, real estate and infrastructure strategies. Since 1986, it has invested roughly $180 billion in the health-care sector.
Sumit Rajpal and Andrew Wolff recently took over day-to-day oversight of the business from Rich Friedman, one of Goldman’s longest-serving partners. The bank plans to raise new private-equity funds that it can charge fees to manage, and over time invest less of its own cash directly in deals.
MIRIAM GOTTFRIED, THE WALL STREET JOURNAL
St. George’s University Featured in the National Post

CANADIAN GRADUATES OF ST. GEORGE’S UNIVERSITY’S MEDICAL SCHOOL EXPERIENCE HIGH MATCHING RATES, OPPORTUNITIES GLOBALLY AND ACROSS NORTH AMERICA
When Vancouver-born Jonathan Phang had completed his undergraduate degree at McGill University in Montreal, he began applying to Canadian and U.S. medical schools. Not initially accepted, he pondered what to do next and considered getting his master’s degree. Then, as he puts it, “St. George’s University caught my eye.”
“It had a very strong curriculum and produced a lot of great doctors in both the U.S. and Canada. It was very credible,” says Phang. Fast-forward several years and several clinical rotations later – at hospitals across the U.S. in New York, New Jersey, California, Nevada and Georgia – and Phang is now back in Canada, in his first year of the psychiatry residency program at the University of Saskatchewan.
“The diversity [of my experience in the U.S. programs] definitely helped me match here,” he says. “I’ve been in Saskatchewan since last May and I’m loving it.”
With a combination of high residency matches, highly qualified faculty and an exceptional support system for its students, it is no wonder that increasing numbers of Canadian medical students are choosing Caribbean-based St. George’s University (SGU) to pursue their medical degrees.
Founded on the island of Grenada in the West Indies, SGU’s School of Medicine officially opened its doors to a small group of students in January 1977.
Today, SGU boasts more than 16,000 graduates in medicine and has been the No. 1 provider of doctors into first-year residencies in the U.S. for the last eight years combined. It is also the third-largest source of physicians for the entire U.S. workforce. In Canada, 143 SGU students have matched into first-year residency programs over the last 10 years, including 16 so far in 2019. Hundreds more have obtained residency positions in the U.S.
SGU students are matching in a broad range of specialties, including internal medicine, family medicine, anesthesiology, emergency medicine, neurology, pathology, physical medicine and rehabilitation, surgery and urology.
Ninety-one per cent of eligible Canadian students who applied for a residency position in 2018 in either Canada or the U.S. were successful. “Canadian students stand a much higher chance of matching to a residency program of their choice in North America than anywhere in the world outside of Canada,” says Sandra Banner, St. George’s University Canadian consultant and the former director of the Canadian Resident Matching Service (CaRMS).
Banner notes students are extensively prepared for both the United States Medical Licensing Examination (USMLE) and the Medical Council of Canada exams. In 2017, first-time Canadian test-takers from SGU had a 99-per-cent pass rate for Step 1 of the USMLE, which is on par with U.S. student test-takers.
“The advantages at SGU over other programs are its diversity, in terms of breadth of student population, teaching facilities and eventually where its graduates practise,” notes Josh Ramjist, who studied in the UK for the first year as a member of SGU’s Keith B. Taylor Global Scholars Program. In 2011, Ramjist started residency in general surgery at Maimonides Medical Center in Brooklyn, N.Y., and is currently the hospital’s chief resident in the department of surgery. He plans to return to Canada this summer to start a fellowship in pediatric trauma at Toronto’s Hospital for Sick Children.
“I can’t think of too many medical schools that have as many countries represented as SGU does,” Ramjist says. “Our teaching facilities are vast, designed to facilitate students becoming top academic achievers, and then it grows to our geographically dispersed affiliated hospitals throughout North America and the U.K.
“With thousands of graduates practicing in a wide range of specialties globally, the SGU ‘family’ of alumni are further changing the way medicine is practised globally.”
In addition to a highly qualified faculty (SGU has close to 2,000 campus-based and clinical faculty, and those with professorial rank have either a PhD, an MD or both), the university is renowned for its support system, offered through the department of education services (DES). Almost all students access this unique system, which offers support in myriad areas, from time management, study and test-taking skills to assistance with reducing anxiety.
“We had a dean from a Canadian medical school visit the campus a few year ago, who said there isn’t a school in Canada that offers the same level of support,” says SGU Canadian consultant Chuck Furey, a former MLA for Newfoundland and Labrador. “He thought it was an exceptional part of the program.”
“The student supports are simply outstanding. SGU is dedicated to helping students from the beginning of the journey to obtaining residencies, from exams to special tutorials,” Furey adds. “It’s really something spectacular to behold.”
“The university offers lot of academic support,” agrees Phang. “If you are ever struggling in a class or with study habits, they have DES small group programs that can help you with study strategies,” he adds, noting that faculty members are “more than willing to meet with you one-on-one.”
“I’m very thankful for the opportunities afforded to me by SGU,” says Ramjist. “I think back to where I was when I was an undergraduate student at the University of Toronto and thought there was a future in medicine for me, but I wasn’t sure exactly how or what path it would take. I’ve never regretted attending SGU for a minute and would do it again in a heartbeat.”
“It’s not a second choice,” adds Banner. “It’s a first-choice school, with first-choice results.”
JODIE WARREN, NATIONAL POST
Altas Partners Completes Acquisition of University of St. Augustine for Health Sciences
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Altas Partners has completed its previously announced acquisition of the University of St. Augustine for Health Sciences (USAHS), a leading graduate health sciences academic institution.

Founded in 1979, USAHS currently educates its students through its network of campuses in San Marcos, California; St. Augustine, Florida; Austin, Texas; and Miami, Florida, and through its online programs. USAHS is the largest educator of physical therapists and occupational therapists in the US, and also offers graduate degrees in nursing and other areas related to its core mission of quality health sciences education.
USAHS focuses on the development of professional health care practitioners through innovative, individualized and quality classroom, clinical and distance education. USAHS is regionally accredited by the Western Association of Schools and Colleges Senior College and University Commission.
For more information, please visit www.usa.edu.
Altas Partners Completes Sale of NSC Minerals
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Altas Partners today announced that it has completed the sale of NSC Minerals Ltd. (“NSC” or the “Company”), a market-leading provider of salt products in Western Canada and the North Central United States. Financial terms of the transaction were not disclosed.

NSC is a leading producer of salt products to provincial, state, and municipal governments, contractors, and industrial customers. The Company offers a wide range of bulk, industrial, and packaged products used in critical applications such as road de-icing.
“Altas was a great partner to our management team,” said Neil Cameron, President and CEO of NSC Minerals. “Consistent with their approach, Altas has supported investments that have positioned NSC for long-term success. We are grateful for the insight they have provided, including supporting key strategic decisions and areas of investment across the business, and thank them for their partnership.”
“It has been a privilege to partner with Malcolm Leggett, NSC’s visionary founder, CEO Neil Cameron and the entire NSC team over the past many years,” commented Andrew Sheiner, Founder and Managing Partner of Altas Partners. “Through a collaborative partnership, we were able to enhance operational performance considerably, driven by logistics optimization and strategic capital investment throughout NSC’s network. We wish the NSC team all the best as they continue to build this wonderful business in the years to come.”
About NSC Minerals Ltd.
Founded in 1988 and based in Saskatoon, Saskatchewan, NSC is a market-leading provider of salt for de-icing, industrial, and agricultural applications. NSC distributes product through a best-in-class logistics network to customers including provincial, state, and municipal governments, contractors, and industrial customers in Western Canada and the North Central United States.
For more information: https://nscminerals.ca
About Altas Partners
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of the firm’s approach include responsible capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. Altas invests on behalf of endowments, foundations, public pension funds and other institutional investors.
For more information: https://www.altas.com
Media Contacts:
Altas Partners
Sard Verbinnen & Co.
Andrew Cole / Julie Rudnick
U.S.: +1 (212) 687 8080
PE Hub Features Altas Partners

LONG-TERM INVESTOR ALTAS PARTNERS CLOSES IN ON Q4 DEAL TRIFECTA
Altas Partners, a pioneer of long-life investing, will soon conclude its busiest quarter to date, wrapping up three transactions — two of them years in the making.
Last month, the Toronto private equity firm closed its acquisition of commercial-roofing contractor Tecta America from ONCAP.
Also in November, Altas completed a minority investment in insurance brokerage Hub International, joining existing owner Hellman & Friedman.
And before the year is out it is expected to finalize a $400-million carveout of physical-therapy school University of St. Augustine for Health Sciences from Laureate Education.
This many closings in a three-month span is rare for Altas, which maintains a slow and deliberative deal pace as part of its long-term strategy.
Founded in 2012 by Managing Partner Andrew Sheiner, a former senior Onex Corp executive, the firm makes control-stake investments in hard-to-replicate businesses and holds them indefinitely.
The strategy departs from the traditional PE horizon of three to five years.
Companies of interest to Altas possess natural advantages that will make them “just as relevant and profitable a decade from now,” Sheiner told Buyouts.
Attributes include a demonstrated track record, sector leadership and an attractive cash-flow profile.
Often these are private businesses navigating an owner-operator transition. Others have a history of sponsor ownership and are now “keen to get off the PE treadmill,” Sheiner said.
A select few emerge from an Altas sourcing process that averages 15 months, from initial engagement to completion. In some cases, as with Hub and USAHS, origination can run for more than 24 months.
On balance, Altas picks one or two companies for acquisition per year, investing up to $800 million in each.
Flexibility the watchword
Along with selectivity, Sheiner said his firm’s strategy puts a premium on a “flexible” horizon. This means investing without reference to a specific timeline, focusing instead on holding assets long enough to generate maximum value.
“Each investment marks the beginning of a journey,” he said. “We partner with a like-minded management team and set out to execute on a shared vision for the business. We don’t know where the journey will take us, which is why flexibility is essential.”
Sheiner said this “optionality of ownership” is key to Altas’s differentiation in a growing club of long-term investors.
In recent years, a number of PE firms, including buyout giants Blackstone Group, Carlyle Group, CVC Capital Partners and KKR, have raised billions of dollars for long-life vehicles. Several offerings have featured hold periods as long as 15 to 20 years.
Upon completion of the USAHS transaction, Altas will have made seven investments in seven years. Five of them sit in the portfolio of Altas Partners Holdings LP, which raised $1 billion in 2016.
In sync with LP trends
Altas’s strategy has met with a warm reception among global institutional investors, many of which are looking to deploy larger sums to long-term opportunities. This is especially true at a time of market frothiness and uncertainty.
Such investors, including pension funds, insurers, endowments and family offices, have so far committed roughly $5 billion to the firm’s stewardship, Sheiner said.
Several have committed resources as major partners in Altas’s transactions.
For example, Altas and Caisse de dépôt et placement du Québec co-led a group that in 2015 invested in optometry-practices manager Capital Vision Services.
And CDPQ and OPTrust joined a 2014 consortium led by Altas and Baring Private Equity Asia to acquire medical school St. Georges University, reportedly for $750 million.
Sheiner oversees a team of 14 investment pros. Its senior members include Managing Partner Scott Werry and Partners Christopher McElhone, Paul Nicoletti, David Brent and Damon Conway.
Brent signed on in July from Apollo Global Management.
Do long-life funds outperform?
Bain & Co recently examined the question of whether long-term PE funds outperform traditional funds.
Bain modeled costs and returns for a theoretical long-life fund selling an investment after 24 years versus a short-duration fund selling four successive companies over the same period.
It found the long-life fund outperformed the short-duration fund by almost 2x on an after-tax basis.
This was achieved, Bain said, by eliminating transaction fees, deferring capital gains taxation and keeping capital fully invested.
KIRK FALCONER, PE HUB
Altas Partners Acquires Significant Interest in Hub International

On November 28, 2018, Altas Partners (“Altas”) completed a substantial equity investment in Hub International Limited (“Hub” or the “Company”), a leading full-service insurance brokerage. The transaction values Hub at more than $10 billion of total enterprise value. Altas will own its equity interest in Hub alongside Company management and employees, who are significant shareholders, and Hellman & Friedman, a leading private equity firm with offices in New York, San Francisco and London.

Hub has distinguished itself as the premier mid-market insurance brokerage, building on the company’s proven formula and enjoying a long and consistent track record of success in the North American marketplace. Hub remains focused on bringing global resources to the local market via its network of regional brokerage offices. The firm continues to prioritize arming its producers and support teams with market-leading products and resources, while cultivating a culture of specialization to provide the level of expertise that Hub’s customers demand. Hub is making significant investments in delivering best-in-class customer experiences, including technology that accelerates the pace at which Hub can complete transactions and provide cost-efficient solutions meeting the evolving needs of customers.
About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services. With more than 11,000 employees in offices located throughout North America, Hub’s vast network of specialists provides peace of mind on what matters most by protecting clients through unrelenting advocacy and tailored insurance solutions. For more information, please visit https://www.hubinternational.com
About Altas Partners
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of the firm’s approach include responsible capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. Altas invests on behalf of endowments, foundations, public pension funds and other institutional investors.
Altas Partners Acquires Tecta America
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Altas Partners (“Altas”), a long-term oriented investment firm, today announced the acquisition of Tecta America Corporation (“Tecta America” or the “Company”). Tecta America is a national leader in commercial roofing services in the U.S.
Tecta America is the nation’s premier commercial roofing contractor, employing more than 3,000 roofing professionals and operating across more than 60 locations from coast to coast. The Company provides a comprehensive set of commercial roofing services to national and local customers across a spectrum of industries and end markets. Tecta America’s full suite of value-added roofing services includes installation, replacement, repairs and maintenance, new construction, disaster response and advanced sustainability options.
“We are thrilled to partner with Altas as we continue to execute on our growth opportunities – both organically and through selective acquisitions. Furthermore, we’re excited to leverage the firm’s support and expertise as we continue to focus on delivering best-in-class service to our customers and being the employer of choice in the roofing industry,” said Mark Santacrose, President and CEO of Tecta America. “We greatly value Altas’ confidence in our people and our future.”
“Tecta America’s strength as a national company with deep local relationships has enabled its evolution into the largest commercial roofing contractor in the U.S.,” said David Brent, a Partner at Altas. “This opportunity is an excellent fit with our long-term investment strategy and approach of partnering with outstanding management teams. We look forward to supporting the team at Tecta America as it continues to provide its customers with exceptional service and capitalize on the significant growth opportunities that lie ahead.”
About Altas Partners
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of the firm’s approach include responsible capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. Altas invests on behalf of endowments, foundations, public pension funds and other institutional investors.
About Tecta America Corporation
Tecta America is the nation’s premier commercial roofing contractor with more than 60 locations from coast to coast. Tecta America’s unyielding commitment to quality, expertise, and professionalism have helped it become the industry leader in commercial roofing. Providing installation of all types, replacement, repairs and maintenance, new construction, disaster response, sustainability options and more, Tecta America offers the responsiveness of a local roofing contractor backed by the resources and stability of a national provider.
For more information: http://www.tectaamerica.com
Dominic Barton Joins Advisory Board

Altas Partners is delighted to welcome Dominic Barton to the firm’s Advisory Board. Dominic is a Senior Partner and Global Managing Partner Emeritus at McKinsey & Company. Dominic has tremendous international leadership experience and will bring valuable insight to Altas and our businesses. He joins Yves de Balmann, Tony Bowe, John Francis, Andrew Hauptman, David Lawee, Joe Natale and Katie Taylor as advisors to the firm.
ABOUT MR. BARTON
Dominic is a Senior Partner and Global Managing Partner Emeritus at McKinsey & Company. From July 2009 to July 2018 he served as Global Managing Partner, based in London. In his 32 years with the firm, Dominic has advised clients in a range of industries including banking, consumer goods, high tech and industrials. Prior to serving as Global Managing Partner, Dominic was based in Shanghai as McKinsey’s Asia Chairman from 2004 to 2009 and led the Korea office from 2000 to 2004.
Dominic is the Chancellor of the University of Waterloo, the Chair of the Canadian Minister of Finance’s Advisory Council on Economic Growth and the Chair of the Seoul International Business Advisory Council. He is also a Trustee of the Brookings Institution, a member of the Singapore Economic Development Board’s International Advisory Council, and a member of the boards of Memorial Sloan Kettering in New York City and the Asia Pacific Foundation of Canada.
He is one of the founders of FCLT Global (Focusing Capital on the Long Term), a non-profit organization dedicated to developing practical tools and approaches that encourage long-term behaviors in business and investment decision-making.
Dominic has authored more than 80 articles on the role of business in society, leadership, financial services, Asia, history and the issues and opportunities facing markets worldwide. Dominic is a co-author, with Roberto Newell and Greg Wilson, of Dangerous Markets: Managing in Financial Crises (Wiley & Sons, 2002), the author of China Vignettes: An Inside Look at China (Talisman, 2007), a co-author, with Dezso Horvath and Matthias Kipping, of Reimagining Capitalism (Oxford University Press, 2016), and a co-author, with Ram Charan and Dennis Carey, of Talent Wins: The New Playbook for Putting People First (Harvard Business Review Press, 2018).
Dominic is a recipient of the INSEAD Business Leader for the World Award (2011), the Korean Order of Civil Merit (Peony Medal, 2013), the Singaporean Public Service Star (2014), the Foreign Policy Association Corporate Social Responsibility Award (2017), and Canada’s Public Policy Forum Testimonial Award (2017). He is a Rhodes Trustee and an Honorary Fellow at Brasenose College, Oxford. Dominic is also an Adjunct Professor at Tsinghua University, Beijing.
He graduated from the University of British Columbia with a BA Honours in economics and has a M.Phil in Economics from Oxford University, where he studied as a Rhodes Scholar.
Altas Welcomes David Brent

Altas Partners is pleased to announce that David Brent has joined the Firm as a Partner.
Prior to joining Altas, David worked in private equity at Apollo Global Management in London and New York, where he focused on sourcing, evaluating and executing deals across a variety of industries. David began his career in the Leveraged Finance group at Bank of America Merrill Lynch. David earned a Bachelor of Commerce degree with Distinction from Queen’s University.
St. George’s University in the News

INTERNATIONAL MEDICAL SCHOOLS HAVE A BAD REPUTATION. THAT NEEDS TO CHANGE, FOR THE GOOD OF U.S. PATIENTS.
It’s growing ever more difficult to become a doctor. Last year, U.S. medical schools attracted more than 51,000 applications. But only about 21,000 students matriculated.
Scores of Americans who would make great doctors never even get the chance to start their medical education.
Some decide to pursue their dreams outside the United States, at international medical schools.
Doctors trained abroad are crucial in America — they account for more than a quarter of our physician workforce.
Yet international medical schools, and those in the Caribbean in particular, have an uneven reputation.
For instance, some international schools have a reputation for being unable to place their graduates into U.S. residency programs. Their alumni may return to the United States with significant student debt and uncertain career opportunities.
The quality of international medical schools does indeed vary widely. But that’s equally true of schools in the in the United States. And the data show that the best international schools are on par with top American programs.
Given America’s looming doctor shortage, we can’t afford to undervalue graduates of international medical schools.
At first glance, U.S. med schools seem to do a better job preparing their graduates for careers in medicine. Ninety-six percent of students from U.S. or Canadian medical schools passed the U.S. Medical Licensing Examination on the first try in 2016. Just 78 percent of students from schools outside the United States or Canada did so on their first go-round.
But the data from specific international schools tell a different story. In 2015, 97 percent of students at the University of Queensland’s Ochsner Clinical School in Australia passed step 1 of the exam on the first try. At my school, St. George’s University in Grenada, 96 percent passed in 2016.
The figures on residencies for international students look scary, too. In 2016, 94 percent of U.S. students matched for residencies. Just over half of students trained internationally did.
But again, there was wide variation among international schools. Some posted numbers on par with their U.S.-based counterparts. This year, all of the graduates of Ben-Gurion University’s medical school in Israel who entered the U.S. National Resident Matching Program secured residencies. Last year, 93 percent of American graduates of St. George’s who applied for residencies in the United States got them.
In some ways, these international medical schools’ stats are even more impressive because their students typically enter with lower grades or MCAT scores than their U.S.-educated peers. Many students attend international schools only because they were turned down stateside.
So international medical schools tend to invest in support services that help students succeed academically and personally. The School of Medicine at University College Cork in Ireland, for example, assigns each international student a senior faculty mentor to provide advice and support.
Research has also shown that international medical graduates deliver high-quality care — in some cases, higher-quality care than doctors educated in the States. One recent study found that Medicare patients admitted to a hospital were less likely to die within 30 days if treated by an internationally trained doctor rather than one educated in the United States.
Finally, international medical graduates tend to practice in locales and disciplines where the need is greatest. For example, in areas where per capita income is below $15,000 per year, international graduates account for 42 percent of doctors.
Or take primary care. By 2030, the United States could be short 43,000 primary care physicians. International medical graduates will be the ones who fill that shortage.
More than half of medical students educated in the Caribbean choose primary care, compared to one-third of U.S.-educated students. At some international schools, that share is even higher — about three-quarters of grads from St. George’s and almost 60 percent from the American University of the Caribbean head into primary care.
In other words, Caribbean medical schools are doing a better job addressing America’s doctor shortage than their counterparts in the States.
The region’s best medical schools provide the personalized training and support needed to turn promising students into top-notch physicians. And American patients benefit immensely.
G. RICHARD OLDS, THE WASHINGTON POST
G. Richard Olds, M.D., is president of St. George’s University. He was founding dean of the medical school at the University of California at Riverside.
Altas Partners to acquire University of St. Augustine

Altas Partners, a pioneer of long-life private equity investing, agreed to buy the largest educator of physical-therapy professionals in the United States.
The Toronto investor on Wednesday announced it will pay US$400 million to acquire the University of St. Augustine for Health Sciences, an academic institution that provides graduate health-science degree programs, primarily in the field of physical and occupational therapy.
The 39-year-old school, which offers classroom and distance training opportunities, has campuses in San Marcos, California, St. Augustine and Miami, Florida, and Austin, Texas.
The deal, expected to close in the fourth quarter, will transfer ownership of USAHS to Altas from Laureate Education, a global network of post-secondary institutions. Laureate acquired a majority interest in 2013.
USAHS appears to be right in the wheelhouse of Altas, which was founded in 2012 by Managing Partner Andrew Sheiner, formerly a senior Onex Corp executive, to make control-stake investments in hard-to-replicate businesses and hold them indefinitely.
The institution’s reputation is partly based on student outcomes. Students attending USAHS had a three-year average graduation rate of 92 percent over 2015-2017, while available data point to recent post-graduation employment rates approaching 100 percent.
Conway, Altas’ point man on the USAHS deal, said the plan is to support the school’s management team, led by CEO Vivian Sanchez, and its strategy. He declined to share additional details.
Altas was created by Sheiner to invest up to $600 million in one to two deals per year. It invests selectively, with a horizon that goes well beyond the PE industry average of three to seven years. The goal is to own assets flexibly and long enough to generate maximum value.
Altas declined comment.
Sheiner expects USAHS to perform just as strongly with the investor’s help. “When you have the good fortune to own an institution like this, the largest physical therapy school in the United States, our orientation is to build it slowly and thoughtfully over a long period of time,” he said.
Macquarie Capital provided financial advice to Laureate in the USAHS deal, while Drinker Biddle & Reath was the legal adviser. Kirkland & Ellis advised Altas on legal matters.
USAHS is the third investment of Altas Partners Holdings LP, which raised US$1 billion in 2016. It was preceded by Capital Vision Services, a manager of optometry practices bought in 2015 by a group led by Altas and Caisse de dépôt et placement du Québec, and PADI, a scuba diving trainer backed last year.
The firm’s other investments are medical school St. George’s University and salt provider NSC Minerals. Altas capitalized those deals with institutional partners.
Sheiner today leads a team of a dozen investment professionals, including Partners Christopher McElhone, Paul Nicoletti and Scott Werry. Conway joined Altas two years ago from Mill Road Capital.
KIRK FALCONER, PE HUB
Altas Partners Acquires Significant Interest in PADI
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Altas Partners has acquired a significant convertible preferred equity interest in PADI (Professional Association of Diving Instructors), the largest scuba diving membership and diving certification organization in the world.

Founded in 1966, PADI is an iconic brand that has set the industry standard for scuba instructor training. PADI enjoys a leading market position globally, with more than 25 million PADI certified individuals worldwide. The Company’s members include more than 6300 dive shops and resorts and 130 000 individual PADI instructors who award close to one million consumer diver certifications each year.
Headquartered in Rancho Santa Margarita, CA, with regional offices in Canada, UK, China, Japan and Australia, PADI supports the efforts of individual professional members and dive centers and resorts in more than 183 countries. The PADI system of diver education is based on progressive training that introduces safety skills, safety-related information and local environmental knowledge to student divers in stages. PADI courses are student-centered and provide maximum practice and realistic application. For more information, please visit www.padi.com.
David Lawee Joins Advisory Board

Altas Partners is delighted to welcome David Lawee to the firm’s Advisory Board. David has a deep appreciation for how technologies can enable businesses, and transform industries, stemming from his experience as both an investor and a leader over many years at Google and CapitalG. David will bring valuable insight and a differentiated perspective to Altas and our businesses. David joins Yves de Balmann, Tony Bowe, John Francis, Andrew Hauptman, Joe Natale and Katie Taylor as advisors to the firm.
ABOUT MR. LAWEE
David Lawee is a Partner at CapitalG. Previously, David was Google’s Vice President of Corporate Development, managing the company’s acquisitions and investments. Over David’s five-year tenure Google acquired approximately 100 companies. Before that, as Google’s first Vice President of Marketing, David managed all of Google’s consumer, advertiser and partner marketing, globally.
Before joining Google, David was a founder of Xfire, a leading online gaming community, which was acquired by Viacom. Previously, David co-founded three other start-ups including Mosaic Venture Partners, a leading Toronto-based venture capital firm. He also worked as a management consultant at McKinsey & Company.
David holds degrees in law and philosophy from McGill University and the University of Western Ontario respectively, as well as an MBA from the University of Chicago.
Joe Natale Joins Advisory Board

Altas Partners is delighted to welcome Joe Natale to the firm’s Advisory Board.
Joe brings tremendous executive, leadership and broad-based technology experience to the Advisory Board. He joins Yves de Balmann, Tony Bowe, John Francis, Andrew Hauptman and Katie Taylor on the Advisory Board.
ABOUT MR. NATALE
Joe Natale is the former President and Chief Executive Officer of Telus Corporation. During his 12-year tenure at Telus, he held positions of increasing responsibility, helping build a national communications company that is recognized globally for its financial and operating performance, customer loyalty, team member engagement and corporate social responsibility.
Prior to Telus, Joe held senior leadership roles at KPMG Consulting, including Global Managing Director in consumer and industrial markets, Country Leader for Canada and Managing Partner for Business Transformation Services. Joe joined KPMG Consulting after the company he founded, PNO Management Consultants Inc., was acquired by KPMG in 1997. He began his career at Accenture in 1987 in strategy and transformation services.
Joe currently serves as Vice Chair of the Board of Directors of Celestica. He is a member of the Board of Soulpepper Theatre Company and the Board of Trustees of Toronto’s Hospital for Sick Children. He sits on the University of Waterloo, Dean of Engineering Advisory Council. Joe and his wife Melissa are active members of the community, supporting initiatives in healthcare and the arts.
Joe is a past recipient of Canada’s Top 40 Under 40 Award and holds a Bachelor of Applied Science degree in Electrical Engineering from the University of Waterloo.
ABOUT ALTAS
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of our approach include prudent capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. We strive to deliver outstanding investment returns for our investing partners. Altas was founded as a collaborative partnership and is led by seasoned private equity professionals and experienced operating executives.
The Omaha play: Buy-out firms are seeking out longer-term investments

WARREN BUFFETT’S Berkshire Hathaway is celebrated for identifying undervalued companies, buying them, holding on to them for years and reaping handsome rewards for its shareholders. Private-equity firms, by contrast, habitually deal in shorter timespans. Funds with a typical life of ten years aim to turn round troubled companies and sell them profitably within just three to five years. Recently, though, the private-equity industry has taken a page from Mr Buffett’s playbook.
Several buy-out firms have been setting up funds that intend to lock up investor funds for 20 years and to hold individual companies for at least ten. Their target net annual return of 10-12% is well below the 20% usually aimed for by ten-year funds, but they promise less volatility and lower fees—1% or so, rather than the customary 2%. Among the largest private-equity firms, Blackstone, the Carlyle Group and CVC have all set up dedicated long-term funds. The largest, Blackstone’s, has raised nearly $5 billion. Specialised upstarts such as Altas Partners of Toronto, which raised $1 billion for its first fund in the spring, are also getting in on the act.
Private-equity houses are establishing these funds mainly because their clients have an appetite for them. With interest rates at rock-bottom, investors are keen to find assets that can offer decent returns. Sovereign-wealth funds, which can invest for indefinite periods, are happy to accept long-term funds’ illiquidity. Endowments, too, are locking up money for longer.
Creating long-term funds is not simple. Ludovic Phalippou, from Said Business School at Oxford University, says that getting fee and incentive structures right can be “very tricky”. Fees, typically fixed for the life of a fund, may look reasonable at first but prove wrong later. Low fees may lure investors but give private-equity firms insufficient incentives to manage the investments diligently; high fees could allow firms to siphon off most of investors’ returns. In quick turnarounds, new managers are usually brought in with the promise of juicy bonuses linked to the sale; how, Mr Phalippou asks, could that be done with a 20-year horizon?
Some have concerns about conflicts of interest. One worried investor fears that large private-equity firms might earmark promising companies for their short-term funds—which remain their core business—leaving only mediocre ones for the new long-term funds.
Small, long-term specialists like Altas Partners should avoid that pitfall. Andrew Sheiner, Altas’s founder, says he intends to hold on to investments for up to 15 years, but to retain the flexibility to “own each business for as long as it makes sense”, so some may be sold sooner. Altas says it has attracted a lot of interest not only from investors but also from the owners and bosses of target companies, many of whom are tired, in Mr Sheiner’s estimation, of being handed from one private-equity owner to another, and instead seek a more stable, longer-term partner.
Despite their recent surge, longer-dated private-equity funds are likely to remain a niche. Last year investors committed $384 billion to the whole industry; the amount going into long-term funds is a small fraction of that. Only 5% of funds set up in 2016 have an intended lifespan longer than 12 years, according to Preqin, a data provider. The large, sophisticated investors who would be the best fit for such long-term funds can often build internal private-equity teams more cheaply. For others keen to invest in a portfolio of companies for the long term, there is another option. If even Henry Kravis, co-founder of KKR, a buy-out behemoth, has called Mr Buffett’s method “the perfect private equity model”, might it not make sense to invest directly in Berkshire Hathaway?
Altas Welcomes Damon Conway

Altas Partners is pleased to announce that Damon Conway has joined the Firm as a Principal.
Prior to joining Altas, Damon worked at Mill Road Capital in Greenwich, Connecticut where he focused on private equity and public equity investments, and at Onex Corporation in Toronto, where he was actively involved with the acquisition and subsequent ownership of Husky Injection Molding Systems. Damon began his career in the Mergers & Acquisitions group at CIBC World Markets. Damon earned a Bachelor of Commerce degree with First Class Honours from Queen’s University and a Master of Business Administration degree with Distinction from Harvard Business School.
Wall Street Journal Reports on Altas Partners Fund Closing

Fund can hold investments much longer than the industry standard
Altas Partners, a four-year-old private equity firm based in Toronto, has raised $1 billion for a fund that can hold investments much longer than the industry standard.
Altas is the first of several firms pitching long-lived vehicles to wrap up its fund as the private-equity industry begins to experiment with breaking standard investment time limits. Some of the world’s largest firms, including Blackstone Group and Carlyle Group, also are raising vehicles that exceed the typical five-year hold period for individual investments and 10-year fund life.
But Altas Partners, founded in 2012 by former Onex Corp. executive Andrew Sheiner, has beaten them to the finish line. The firm closed its debut vehicle in about a year and exceeded the initial $600 million goal to hit the fund’s upper limit, also referred to as the hard cap. Altas Partners Holdings LP closed on April 30 and was raised with the help of placement agent Park Hill Group LLC.
Altas’s fund is unusual in three ways. It gives the firm the option to own each company it invests in for up to 17 years, charges management fees on the money it has actually invested rather than the entire pool it raised and concentrates an unusually large share of the fund’s capital in each deal.
The desire to start a fund like this led Mr. Sheiner to strike out on his own after a 17-year career with the Toronto-based Onex. Onex’s investment in Sky Chefs, which it held for 15 years and built into the largest airline caterer in the world, is a model for the type of long-term investment he hopes to make, he said.
“With some businesses under the traditional private-equity model, there is pressure to sell before it’s time,” Mr. Sheiner said. “Great businesses are hard to find, and if you’re fortunate enough to own one, it’s tragic to have to sell for structural reasons.”
Although relatively new, longer-term funds are finding traction with institutional investors. Blackstone Group’s long-life fund collected $670 million in the first quarter, and the firm expects it to exceed its $5 billion target. Carlyle has raised around $3 billion for a 20-year fund and may collect more, Co-Chief Executive David Rubenstein said on a recent earnings call.
Altas’s strategy differs from those of its larger peers. While Blackstone has said it wants to make safer, lower-return investments that it will hold for a long time, Altas will aim for typical private-equity returns and isn’t specifically pursuing long-term deals. It may sell some companies within just a few years but has the flexibility to hold them as long as necessary, Mr. Sheiner said.
The approach is designed in part to appeal to business owners and managers. Sponsor-to-sponsor deals, when one private-equity firm sells a business to another, make up a steadily increasing percentage of private-equity exits, and some business owners are eager to get off the treadmill, Mr. Sheiner said.
“So many [businesses] are on their second or third private-equity owner that the notion of having a more stable, longer-term capital partner is really appealing to them,” he said.
With a longer investment horizon, Altas will invest deliberately, making three to five investments total from the new fund. It hopes to deploy $150 million to $500 million at a time in one or two deals a year, Mr. Sheiner said.
Altas already has invested in deals totaling about $1 billion of invested capital, relying partly on capital raised before launching its fund. The firm funded at least part of its most recent deal, Capital Vision Services, a Virginia-based optometry practices management platform, out of the new fund. Previously, it invested in St. George’s University, a medical school in Grenada, and NSC Minerals, a Canadian company that makes salt for deicing roads.
CHRIS CUMMING, THE WALL STREET JOURNAL
The Globe and Mail Reports on Altas Partners Fundraise

ALTAS DOUBLES DOWN ON LONG-TERM VISION WITH $1-BILLION FUNDRAISING
Patience is proving to be a real virtue for private-equity firm Altas Partners LP, which raised $1-billion (U.S.) for its new fund.
The Toronto-based firm, founded by Onex veteran Andrew Sheiner in 2012, is effectively doubling its size with this latest fundraising. Altas now manages about $2-billion that it uses to invest in businesses over an uncommonly long horizon of up to 17 years.
That holding period is Mr. Sheiner’s way of spending more time thinking about owning businesses, rather than focusing on when and how to sell them. He said some funds with plans for shorter ownership stints have been “chasing their tails from the outset” in recent years.
Altas also wants to set itself apart from the swelling group of about 400 private equity firms in North America that manage more than $500-million in capital .
“It’s intensely competitive, but there are not a lot of firms that have a longer-term orientation. It is still truly a handful,” said Mr. Sheiner. The fund was oversubscribed in this latest round, exceeding fundraising goals to hit its $1-billion cap.
Altas limits itself to just one or two major purchases a year. It also likes to keep debt levels lower than average to ensure its businesses can weather downturns. The firm targets equity investments of about $150-million to $600-million, partnering with other institutional investors on larger deals. That means the $1-billion it has raised will be good for three or four deals, Mr. Sheiner said.
Even outside of Altas, average holding periods for private-equity investments edged up in recent years as some firms needed extra time to clean up after the crisis, and others were forced to wait longer for acceptable returns on assets bought at high multiples post-crisis.
That began to reverse last year as high asset valuations encouraged more PE funds to head toward the exit and clear out their inventory of older assets. Median holding periods for investments owned by private-equity firms dropped to 4.9 years in 2015, from 5.8 a year earlier, according to a report from private-equity giant Bain & Co.
Altas is looking to invest in businesses that will be important and relevant in another decade. “It’s actually a very tough filter,” Mr. Sheiner said. Investing in media or technology is typically off the table.
The first $1-billion was primarily spread between three investments. First was NSC Minerals, provider of salt for de-icing roads and for agricultural applications. Then came a hub for international medical students with the purchase of St. George’s University in Grenada. Most recently, the firm bought Virginia-based Capital Vision Services, which provides support services to independent optometrists under the brand name MyEyeDr. These deals were done with partners, including institutional investors such as pension funds.
With those transactions successfully closed, Altas set out to raise more committed capital about a year ago, bringing in a mix of existing and new investors to back its strategy of owning businesses over the longer term, typically for at least 10 years. The firm will participate in auctions under some circumstances, but prefers to go after opportunities where it can build relationships with owners and management teams looking for particular solutions.
In the case of Capital Vision, the business was owned by another private-equity firm that was looking to exit. The company’s founder wanted to buy the business alongside a partner that could stick around, Mr. Sheiner said.
The next step for Altas will be to staff up – by the end of the year Mr. Sheiner plans to add three investment professionals to the team of eight already in Toronto.
JACQUELINE NELSON, THE GLOBE AND MAIL
Altas Partners Completes US$1 Billion Fundraise

HIGHLIGHTS STRONG SUPPORT FOR ITS DIFFERENTIATED APPROACH TO PRIVATE EQUITY INVESTING
Altas Partners LP, a North American private equity firm, announced today that it has completed a US$1 billion fundraise for Altas Partners Holdings LP. The fund closed at its hard cap and was oversubscribed.
Altas was established in 2012 to pursue a differentiated approach to private equity investing. The firm seeks to invest in only one or two businesses each year, and has a longer-term outlook than many private equity firms. The firm’s partners believe that this orientation allows Altas to make strategic and capital decisions that support attractive growth in value over time, and that its flexible time horizon, with the ability to own each business for more than ten years, provides a meaningful benefit to its investors and is greatly valued by the CEOs and executives that lead Altas’ operating companies. Altas and its partners have made three acquisitions since the firm’s establishment: NSC Minerals, St. George’s University, and Capital Vision Services.
“We are very grateful for the support we have received from the outset of the fundraising process,” said Andrew Sheiner, who founded Altas following a 17-year career with Onex Corporation. “This capital will allow us to continue the process of building our portfolio carefully in the coming years, working with exceptional management teams and on behalf of like-minded investors.”
Burgeoning Altas Partners inks third private equity deal

Adhering to its game plan, which calls for one or two new deals a year, Altas Partners has secured its third private equity investment.
Founded by Andrew Sheiner, who spent 17 years at Onex, the Toronto-based firm was set up in 2012 as a longer-term private equity player looking to write equity cheques of between $100-million and $500-million a transaction.
Instead of sticking to the traditional private equity script, which calls for portfolio companies to be sold within five to seven years, Altas is happy to be a strategic partner and invest for longer. The hope is that this differentiation will set the firm apart.
Altas is also taking its time with deals. Instead of piling into new investments, Mr. Sheiner has stressed patience and would rather tack on one or two annually.
The latest deal, announced Monday, is for Capital Vision Services, a Virginia-based company that provides management services to MyEyeDr. CVS, as it is known, offers back office functions, such as finance, human resources and accounting services to a patchwork of independent optometrists.
The deal follows Altas’s recent investments in NSC Minerals, which provides salt for road de-icing and agricultural applications, and in St. George’s University in Grenada, which offers medical degrees that are applicable in the United States.
Although Altas is still in its infancy, its management team is well-connected, with work history at places such as Onex and Providence Equity Partners, and has relationships with established private equity players. These connections are paying off, helping Altas bring in big players to co-invest in its deals.
The latest, for CVS, is being inked alongside the Caisse de dépôt et placement du Québec. Last year Altas teamed up with OPSEU Pension Trust (OPTrust), the pension plan for Ontario public sector employees, for its investment in St. George’s.
TIM KILADZE, THE GLOBE AND MAIL
Altas Partners Invests in Capital Vision Services

ALTAS AND CDPQ INVEST ALONGSIDE MANAGEMENT TO SUPPORT CONTINUED GROWTH
Capital Vision Services, LP (“CVS”), which provides management services to MyEyeDr. O.D. (“MyEyeDr.”) optometry practices, today announced that it has received an equity investment from a group led by Altas Partners (“Altas”) and Caisse de dépôt et placement du Québec (“CDPQ”). Altas and CDPQ are investing in partnership with CVS’ Co-Founder and Chief Executive Officer Sue Downes and other members of management who will continue leading the company in their current roles. Joining the investor group are several leading institutional and private investors, including Andell Inc. Financial terms of the transaction were not disclosed.
Founded in 2001 by Ms. Downes and Robert Samit, O.D., CVS focuses on supporting affiliated, independent MyEyeDr. optometrists and their practices with a complete array of financial, marketing, human resources and accounting services, along with managed care credentialing and claims processing. MyEyeDr. practices offer patients exceptional vision care services, a wide selection of prescription eyeglasses and sunglasses, and standard and specialty contact lenses. CVS has grown from managing a single practice in the Washington D.C. metro area to managing 165 optometry practice locations in Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and Washington D.C. MyEyeDr. affiliated practices have grown steadily through new location openings and collaborative acquisitions, and today have nearly 2,000 employees serving approximately 1.8 million active patients throughout the United States.
“This news is about growth and opportunity and underscores the success of CVS to-date, the tremendous talent we have at every level of the organization, and our bright future,” said Ms. Downes. “I am thrilled to partner with Altas and CDPQ as we continue to grow CVS, support the MyEyeDr. optometrists, and offer MyEyeDr. patients high-quality service and care that they greatly value. Altas and CDPQ are long-term investors who share our ownership philosophy and value our passion for helping patients. We are excited to build on the success of the organization together in the coming years. As our company grows, we will stay focused on what we do best – meeting all patients’ full-service vision care needs through a doctor-driven model. Also, we thank our original investors, Monitor Clipper and Charlesbank, for their many years of support that helped drive the initial expansion of the business, and in particular thanks to Charles Yoon who has been a great partner and source of guidance.”
David Sheffer, Executive Vice President of Corporate Development at CVS, said, “We appreciate Altas and CDPQ’s confidence in CVS and our affiliated MyEyeDr. optometry practices. This new investment underscores the strength of CVS’ financial position and market leadership, providing further capital as we pursue acquisitions and bring more outstanding optometrists into the MyEyeDr. family of affiliated practices around the country.”
Scott Werry, a Partner at Altas, commented, “Under Sue’s leadership, CVS has developed into a world-class organization that preserves and supports a doctor-driven model while delivering both high-quality care and a great selection of products and services to nearly 2 million patients. We believe the company has tremendous opportunities for continued success. Consistent with our investment philosophy, we bring a long-term outlook to supporting the company, and we look forward to working collaboratively with Sue and the talented team at CVS in the years ahead.”
“With this investment, CDPQ contributes to the further expansion of a company that has made a name for itself in its sector over the past 15 years with a distinctive business model,” added Andreas Beroutsos, Executive Vice President, Private Equity and Infrastructure, of CDPQ. “From a long-term investment standpoint, CDPQ’s contribution will enable the company to carry out its growth plan.”
ABOUT CAPITAL VISION SERVICES, LP
Founded in 2001, Capital Vision Services, which provides management services to full-service optometry practices, is a market leader. Its affiliated MyEyeDr. practices offer patients exceptional full-service vision care, a wide selection of prescription eyeglasses and sunglasses, and standard and specialty contact lenses. Capital Vision Services provides affiliated, independent optometrists with a complete array of financial, marketing, human resources and accounting services, along with managed care credentialing and claims processing. The company has grown from managing a single practice in the Washington D.C metro area in 2001 to managing 165 locations in Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and Washington D.C. MyEyeDr. practices have grown steadily through new location openings and collaborative acquisitions, and have nearly 2,000 employees serving approximately 1.8 million active patients throughout the United States.
ABOUT ALTAS PARTNERS
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of Altas’ approach include prudent capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. Altas strives to deliver outstanding investment returns for its partners. Altas is led by seasoned private equity professionals and experienced operating executives. For more information, please visit www.altas.com.
ABOUT CDPQ
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As of June 30, 2015, it held $240.8 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ, which marks its 50th anniversary this year, invests globally in major financial markets, private equity, infrastructure and real estate. For more information: www.cdpq.com.
Media Contacts:
Andrew Cole/Julie Rudnick
Sard Verbinnen & Co
212-687-8080
Kathleen Taylor Joins Advisory Board

Katie brings tremendous executive and international leadership experience to the Board. She joins Yves de Balmann, Tony Bowe, John Francis, Andrew Hauptman and Andrew Dunn as advisors to the Firm.
ABOUT MS. TAYLOR
Kathleen (Katie) Taylor is Chair of the Board of RBC. She has served on the RBC board since 2001, where she has chaired the Human Resources and Corporate Governance Committees, and served on the Audit and Risk Committees. She is also Chair of the Board of the Hospital for Sick Children Foundation and a member of the Board of Trustees for the Hospital for Sick Children. Ms. Taylor is a director of the Canada Pension Plan Investment Board, where she serves on the Audit and Human Resources Committees, and a director of the Adecco Group, where she serves on the Audit Committee.
Ms. Taylor is the former President and Chief Executive Officer of Four Seasons Hotels and Resorts where she held a number of senior leadership roles during her 24-year career with the company. Prior to becoming CEO in 2010, she served as President and Chief Operating Officer and President, Worldwide Business Operations. She was instrumental in establishing the firm’s global portfolio of luxury properties and ensuring the brand’s international success.
Ms. Taylor received a Master of Business Administration degree from Schulich School of Business, a law degree from Osgoode Hall Law School and a Bachelor of Arts (Honours) from the University of Toronto. She has received an honorary Doctor of Laws from York University, an honorary Doctor of Humane Letters from Mount Saint Vincent University, the Schulich School of Business Award for Outstanding Executive Leadership and the inaugural Medal for Career Achievement from the Hennick Centre for Business and Law.
Ms. Taylor is Chair of the Principal’s International Advisory Board of McGill University, a member of the Dean’s Advisory Council of the Schulich School of Business of York University, and a member of the C.D. Howe Institute’s National Council.
Going long: Why Altas Partners and OPTrust invested in St. George’s University

Imagine studying at a university located on a lush Caribbean island. You attend classes and mingle with the other students on a campus nestled in a sun-drenched peninsula overlooking an expanse of brilliant blue sea.
That pretty much describes St. George’s University (SGU), a private Grenada-based post-secondary institution that trains doctors to work in healthcare systems around the world.
Founded in 1976 and led by chancellor Dr. Charles Modica, the school is international in scope, drawing students and faculty from 140 countries, and operating a clinical training program that is affiliated with more than 70 hospitals and clinical centres.
A couple of weeks ago, SGU was the focus of a major control-stake transaction involving an investor group led by Canadian private equity firm Altas Partners and a fund advised by Baring Private Equity Asia. Completed in partnership with Modica and SGU’s management team, the transaction has been estimated at US$750 million.
SGU is the second deal done by Altas since its launch in 2012 by former Onex Corp Managing Director Andrew Sheiner. It marks an important step for a firm that has sought to blaze a new path in PE dealmaking.
Altas was conceived by Sheiner to invest selectively—writing equity cheques of between $100 million and $500 million in one or two opportunities a year—and hold assets long enough to produce maximum value. Its horizons go well beyond those of most buyout firms, which typically sell companies within three to five years. Altas aims to invest more flexibly, whatever the amount of time, whatever the circumstances, to achieve higher multiples on its invested capital.
How does this investment thesis apply to the idyllically located SGU? I addressed this question to Sheiner and Partner Scott Werry, who was Altas’ point man on the deal.
“In general, we want to invest in businesses that are hard to replicate and possess a clear natural advantage,” said Sheiner. “They should be high quality, market-leading companies that 10 years from now will be just as important, just as relevant and as highly profitable.”
“That’s a really high bar,” Sheiner observed, but it is one he said he believes has been met by SGU. “What Charles and his team have built at St. George’s over nearly four decades is very hard to replicate,” he said. “There is no risk of obsolescence.”
Werry, who joined Altas from Providence Equity Partners in 2013, agreed.
“As a premiere international medical school, St. George’s is a really good fit for us,” he said.
Werry noted that SGU has since inception been responsible for “superior student outcomes,” turning out more than 14,000 graduates who have practiced as physicians, scientists and healthcare professionals in more than 50 countries. That record has translated into solid and sustainable financial performance: “St. George’s has a compelling free cash flow profile,” he said.
The school’s future prospects may be even better. One of its specialities is training primary care providers, an occupation that is in high demand—last year, the World Health Organization reported the global shortage of primary care and other skilled healthcare professionals currently stands at 7.2 million. That number is expected to reach 12.9 million by 2035.
Primary care shortages are a particular concern in the U.S. healthcare delivery system, which is where most SGU-educated doctors eventually practice. SGU reported in June that during the past three years it has placed more physicians into first-year U.S. residency positions than any other medical school.
SGU also found a fit with Altas and its consortium. Introduced in February 2013, Werry said Modica was searching for a partner for “the next chapter of the family-owned business.”
“St. George’s required a stable capital base that would give it continuing opportunities to improve the school and undertake global expansion,” he said. It needed a value-adding partner—one that could help increase resources for academic development, course offerings and student services, and build additional networks and strategic relationships.
Sheiner said alignment was found because instead of looking for a “quick exit,” Altas was prepared to be “a long-term steward of the business.” It also offered SGU strong operational capabilities and “a responsible capital structure, with a more conservative use of leverage.”
“Inappropriate capital structures are the existential risk of private equity,” he said.
Baring also brought value to the table. A pan-Asia private equity firm with headquarters in Hong Kong, Baring specializes in making investments in the for-profit education sector. Its portfolio includes a variety of K-12, post-secondary and educational content companies.
Altas led a group of several institutional investors in the SGU transaction. Among them was OPSEU Pension Trust (OPTrust), manager of the $16 billion retirement plan of Ontario’s public employees.
Sandra Bosela, co-head of OPTrust Private Markets Group (PMG) and responsible for its global PE activity, told peHUB Canada that merit was seen in the investment because of SGU’s “strong reputation and global strategic partnerships” and its “crucial role in responding to emerging healthcare trends.”
SGU is OPTrust PMG’s 12th direct deal in the last two years, and the second of three expected to close this summer. In July, it joined with Imperial Capital Group in making a $121 million investment in Dental Corp, a group of Canadian dental care clinics.
Bosela said OPTrust PMG has “a flexible capital approach that can support a range of market strategies, structures and horizons.” Its role in the SGU transaction reflects “an opportunity that calls for greater flexibility and a longer horizon in order to provide capital stability and support for growth.”
“Strong global partnerships are an essential pillar of our private equity strategy,” she said. “We aim to work shoulder-to-shoulder with experienced, like-minded investment partners. Alignment of interests is key to all of our deals, but it is especially important when we are taking a longer-term approach.”
OPTrust is part of growing community of institutional investors that are looking to source more PE deals directly but that lack the scale of a mega-sized pension fund organization to achieve this objective on their own.
It was these potential partners that Sheiner had in mind when he founded Altas. Since then, strategic collaborations have been forged with a core group of institutional investors, including pension funds, insurance companies and family offices.
Sheiner said he believes Altas’ partners have signed on because they are “keenly interested in a unique investment model consisting of deeper relationships, truer alignment and real engagement.” Giving it continuous access to a large pool of co-investment dollars, they have allowed Altas “to deploy a lot of capital in a short time to some very attractive and bespoke opportunities.”
Altas’ debut transaction was last October’s buy of NSC Minerals, a Saskatoon-based provider of salt for highway de-icing, industrial and agricultural applications. NSC was acquired from U.S. private equity firm Wynnchurch Capital, which bought it in 2011 from Canada’s TriWest Capital Partners.
KIRK FALCONER, PE HUB
With an eye on the long term, ex-Onex star has big goals for Altas

After 17 years at Onex Corp. – where he was a managing director who oversaw some key investing platforms – Andrew Sheiner hung out a shingle in 2012 to create Altas Partners. Since then, he has assembled a team that includes former colleagues as well as industry experts from firms such as KKR & Co. and Providence Equity Partners. Together they are searching for large deals, hoping to write equity cheques of between $100-million and $500-million a transaction.
To differentiate themselves in the intensely competitive private equity market, the team at Altas is keen on investing in assets that can be held for longer than usual. Private equity firms typically sell their investments after four to five years, but Mr. Sheiner is looking for opportunities that can deliver bigger profits if they are owned for longer than that.
Not only does that mindset help Altas line up co-investors such as pension funds, who often look for long-term opportunities, but Mr. Sheiner said it helps the firm avoid some of the traditional drawbacks.
Because the private equity industry has matured over the past two decades and now has roughly 400 North American firms with more than $500-million in capital each, the majority of deals today stem from one private equity investor flipping an asset to another. “Sometimes that’s done for the right reason,” Mr. Sheiner said. “Other times, it’s done simply for structural considerations.”
Such sales come with transaction costs, and they are also subject to taxes, which can strip out value. More than that, investors can suffer when a private equity fund they have money in sells an asset to a second fund they have also invested in, because the embedded expenses and taxes create costs along the way. “It’s not uncommon for large investors to find themselves on both sides of the transaction,” Mr. Sheiner said.
To date, Altas has struck two deals. Its first, in late 2013, was the acquisition of Saskatoon-based NSC Minerals, which provides salt for road de-icing and agricultural applications in Western Canada and the northwest U.S.
The second, which closed this week, involves Altas teaming up with a fund advised by Baring Private Equity Asia to acquire an equity investment in St. George’s University. The school, based in Grenada, offers medical degrees, and its graduates often become medical residents in the United States. Financial terms were not disclosed, but a source familiar with the transaction said the deal valued St. George’s at $750-million (U.S.).
To help shoulder the burden, Altas teamed up with OPSEU Pension Trust (OPTrust), the pension plan for Ontario public sector employees, to share its portion of the transaction. Such partnerships come naturally to the firm because of its team members’ long-standing relationships. The deal is OPTrust’s 12th direct private investment in the past two years.
In an ideal world, Altas would like to acquire one to two large businesses a year, Mr. Sheiner said, but acknowledged that it is a tough landscape to navigate because it is a “crowded market.” And given the recent trend of disruption, where long-standing business models are suddenly shaken to the core by technological innovation, the team is taking their time to find investments whose business models aren’t susceptible to such immediate change.
AUGUST 8, 2014 — TIM KILADZE, THE GLOBE AND MAIL
Altas Partners with St. George’s University

ST. GEORGE UNIVERSITY RECEIVES EQUITY INVESTMENT FROM ALTAS PARTNERS AND BARING PRIVATE EQUITY ASIA
Investment Will Support Continued Expansion and Enhanced Services for Students
St. George’s University today announced that it has received a substantial equity investment from a group led by Canadian investor Altas Partners and a fund advised by Baring Private Equity Asia. The Altas-led investment group and the fund advised by Baring Private Equity Asia are investing in partnership with St. George’s current management team, led by Chancellor Charles R. Modica, who co-founded the University in 1976. Dr. Modica will remain in his leadership position, and he and the other current owners of the University will collectively remain the largest shareholder. Financial terms of the transaction were not disclosed.
Founded as an independent School of Medicine in 1976, St. George’s is a leading center of international education, dedicated to developing outstanding physicians and improving health standards throughout the world. Its professors, students, and graduates are from 140 countries, and the School of Medicine’s clinical training program has affiliations with more than 70 teaching hospitals and clinical centers, principally located in the United States and United Kingdom. The University has more than 14,000 graduates, including physicians who have practiced medicine in all 50 US states, Canada, as well as 50 other countries. Most St. George’s-trained doctors are involved in primary care, a significantly underserved area of healthcare, particularly in the US. Today, more than 6,000 students are enrolled and studying in 52 academic degree programs, including Doctor of Veterinary Medicine as well as standalone and dual-degree graduate programs that include MBA and MPH.
“At SGU, we strive to improve the lives of those we serve: our students and the local communities where they train and practice,” said Dr. Modica. “Our job is to be an important contributor to healthcare delivery systems around the world. We are thrilled to partner with Altas and Baring Asia who share our goals and passion for educating students and who have stellar track records working with businesses to grow over the long term. With this investment, SGU enters a new chapter of its development with a focus on expanding student resources, supporting our research and undergraduate programs, adding international capabilities, and enhancing our relationships with hospital and university partners.”
Andrew J. Sheiner, Founder and Managing Partner of Altas, stated, “Under Charles Modica’s leadership, SGU has built an important academic institution that helps meet the urgent need for talented and well-trained primary care physicians in the US and abroad. In line with our investment philosophy, we bring a long-term outlook to supporting SGU and look forward to partnering with Charles and the team to add lasting value to the University in the years to come.”
Added Jean Eric Salata, Chief Executive and Founding Partner of Baring Private Equity Asia, “We appreciate SGU’s deep engagement with Grenada and the other communities it serves, and are dedicated to continuing that commitment going forward. As an international investment advisor, we are excited at the prospect of expanding SGU’s capabilities. Given the more than one million medical school applicants across Asia every year, we look forward to leveraging our education sector capabilities throughout the Asia region to build upon the leadership position SGU has established over many years.”
“Altas’ and Baring Asia’s investment in St. George’s University is a powerful vote of confidence in our country and our longstanding partnership with this school,” added Grenada’s Prime Minister, Dr. The Right Honorable Keith C. Mitchell. “For over 38 years, the Grenadian community has embraced St. George’s University and its students, and in turn, SGU has been a vital contributor to the island, adding significantly to the local economy and providing employment and education opportunities to our citizens. Since 2005, SGU has granted more than $90 million in scholarships to Caribbean students, many of them Grenadian. We are grateful that St. George’s world-class education is available to our citizens, and look forward to expanding our partnership as SGU grows. We are proud that St. George’s University calls Grenada its home.”
ABOUT ST. GEORGE’S UNIVERSITY
Founded as an independent School of Medicine in 1976, St. George’s University has evolved into a leading center of international education, drawing students and faculty from 140 countries to the island of Grenada, in the West Indies. Students attending St. George’s enjoy the benefits of a thriving multicultural environment on the True Blue campus, offering all the amenities and technologically-advanced facilities of a world-class institution.
The University’s more than 14,000 graduates include physicians, veterinarians, scientists, and public health and business professionals across the world. The University offers medical and veterinary degrees in the schools of Medicine and Veterinary Medicine, respectively, and independent and dual graduate degrees in the sciences, public health, and business. Undergraduate degree programs are also available through St. George’s School of Arts and Sciences. The University’s programs are accredited and approved by many governing authorities and repeatedly recognized as the best in the region. St. George’s is affiliated with educational institutions worldwide, including the United States, the United Kingdom, Canada, Australia and Ireland. For more information, please visit www.sgu.edu.
ABOUT ALTAS PARTNERS
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of our approach include prudent capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. We strive to deliver outstanding investment returns for our investing partners, which include pension funds, insurance companies and large family offices. Altas was founded as a collaborative partnership and is led by seasoned private equity professionals and experienced operating executives. For more information, please visit www.altas.com.
ABOUT BARING PRIVATE EQUITY ASIA
Baring Private Equity Asia is one of the largest and most established independent private equity advisory firms in Asia and advises funds with total committed capital of over US$5 billion. The firm runs a pan-Asian investment program, specializing in mid-cap buyouts and providing growth capital to companies for expansion or acquisitions. An active education advisor, Baring Private Equity Asia advises funds that maintain a global portfolio of assets including K-12, post-secondary and educational content businesses. The firm has been advising funds in Asia since its formation in 1997 and has approximately 100 employees located across seven offices in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta and Tokyo. For more information, please visit www.bpeasia.com.
Media Contacts:
Margaret A. Lambert, MA
Director of University Communications and Publications
mlambert@sgu.edu
631-665-8500, ext. 91-212
Andrew Cole/Lesley Bogdanow/Alexandra LaManna
Sard Verbinnen & Co
212-687-8080
Richard Barton
Newgate Communications
Richard.barton@newgate.asia
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Altas Adds to Firm’s Advisory Board

Altas welcomes Anthony Bowe as the newest member of its Advisory Board. Tony retired at the end of 2013 as Co-Head of Credit Suisse’s Private Fund Group, having been with PFG, and its predecessor at Donaldson, Lufkin & Jenrette, since 1998. Tony joins Yves de Balmann, John Francis, Andrew Hauptman and Andrew Dunn as advisors to the Firm.
Altas Partners Acquires NSC Minerals
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Altas, together with its partners and senior management, has acquired NSC Minerals. Founded in 1988 and based in Saskatchewan, Canada, NSC Minerals is the leading provider of salt for road safety, industrial and agricultural applications, serving customers including municipal, provincial and state governments in Western Canada and the North Central United States. For more information on NSC please visit www.nscminerals.com.
St. George’s University Lands $750M Investment Deal

St. George’s University in Grenada has landed a $750 million investment from a group led by Canadian private-equity firm Altas Partners LP and a fund advised by Baring Private Equity Asia, according to a person familiar with the deal.
The new investors will hold a majority stake in the for-profit college, though the original owners will collectively remain the largest single shareholder. The companies declined to share details of the new ownership structure.
The investment underscores the market opportunity for high-quality medical education overseas, as the number of open slots at U.S. schools is dwarfed by the number of applications those schools receive. Last year, according to the Association of American Medical Colleges, just under 42% of the 48,010 applicants to U.S. medical schools enrolled.
The money will help St. George’s, which has programs in medicine and veterinary medicine, expand its global reach, said Chancellor Charles R. Modica. More than two-thirds of the 5,150 students in its four-year M.D. program are U.S. citizens, and almost all of them return to the U.S. for residency programs. Modica said he’s interested in growing the talent pipeline in places like Botswana, South Sudan and parts of Asia.
“We were at a point of recognizing that this could be so much more” than a training ground for U.S. doctors, Modica said. Building capacity for other international students who will then return to their home countries is “chapter two.”
Reuters reported last year that St. George’s was looking to sell itself for upwards of $1 billion, but Modica said the school was never aiming to sell itself outright. “This is my baby,” he said.
He said the funds will go toward scholarships, as well as marketing and outreach to attract future students.
It will also help grow St. George’s network of clinical rotation partners. The school pays about 70 affiliate hospitals to take students for third- and fourth-year clinical rotations, which help pave the way for residency placements. For example, it has a 10-year, $100 million deal for 600 slots at the New York City Health and Hospitals Corp., which runs 11 public hospitals.
St. George’s, founded in 1976, is perhaps best known for playing a part in the U.S.’s 1983 invasion of Grenada; shortly after a Marxist coup on the island nation troops evacuated nearly 1,000 Americans, many of whom were medical students at the university.
Many students who didn’t gain admission to mainland U.S. medical schools pursue degrees in the Caribbean instead, at schools like St. George’s, or Ross University School of Medicine in Dominica and American University of the Caribbean School of Medicine in St. Maartin, both owned by DeVry Inc. The programs tend to have higher price tags than their U.S.-based counterparts, and their outcomes vary widely.
The first-time pass rate for St. George’s students taking the first step of United States Medical Licensing Exam last year was 98%.
St. George’s, whose four-year medical degree has a price tag of $246,400, is eligible to receive federal financial aid dollars. Its medical and veterinary schools received upwards of $85 million in federal unsubsidized and Grad PLUS loans in the first quarter of calendar 2014.
Modica met Altas founder Andrew J. Sheiner about 18 months ago, and the deal formed from there, they said. Sheiner founded Altas in 2012 after working as a managing director at Canadian buyout firm Onex Corp. Its other main investment is NSC Minerals, a Saskatoon, Saskatchewan industrial salt provider.
Baring Private Equity Asia advises funds with upwards of $5 billion in committed capital.
AUGUST 8, 2014 — MELISSA KORN, THE WALL STREET JOURNAL
Andrew Sheiner on the Changing Face of Private Equity

The launch of peHUB Canada got me thinking – Canadian private equity has come a long way in a short time. A landmark year was 1983, when Gerry Schwartz founded Toronto’s Onex Corp. and acquired the Canadian subsidiary of American Can Co., then the largest leveraged buyout in domestic market history.
Onex went on to do bigger things, in part due to the leadership of Andrew Sheiner, who joined the firm in 1995. Eighteen years later, Sheiner retains a yen for innovation, leaving Onex in 2012 to found Altas Partners. I caught up with him recently and we spoke about the early days of private equity.
“I’m grateful for the opportunity to have worked at Onex,” he said. “Gerry and his team created a unique culture. From the beginning Onex pursued a strategy that was based on the principle that investments should be made using our own money and the firm’s capital. And Onex continued this practice as it evolved to managing third-party partnerships.” (Onex committed US$1.2 billion to the US$4.7 billion Onex Partners III LP, which closed in 2010.)
“Onex is one of the best private equity firms in the world today largely because of this principle,” he added.
In his nearly two decades in private equity, Sheiner has made note of some significant changes. For example, in the 1980s and 1990s, “private equity was an entrepreneurial business,” he said. “Now it’s an asset class. It’s a global industry, institutionalized by a large limited partner community and supported by a massive number of service providers.”
Additionally, private equity has become “homogenized,” in Sheiner’s words. He pointed to the in influence of the traditional limited partnership model, which drives market dynamics and which has not changed much over time. “Because all buyout firms operate through identical fund structures, and because they’re compensated in the same manner, virtually all of them do the same thing,” he said. “They acquire a company, improve it, and then sell it within three to five years.”
While Sheiner says he believes the traditional mode of private equity investing remains viable, he also thinks its locked-in behavior of buying and selling overlooks a great many opportunities. “There’s no magic in five years,” he said. “Great businesses are hard to buy. If you are fortunate enough to own one, and that business continues to perform strongly, you should be careful about selling it.”
This perspective may resonate with LPs. As the owners of private equity-backed assets, some limited partners are frustrated when quality companies are sold too early, in their estimation. Sheiner said LP frustration has increased in the post-2007 market environment and its heavy reliance on sponsor-to-sponsor deals.
“There’s a mismatch between many private equity firms and LPs,” he said. “Institutional investors need options for longer-term ownership and for ownership strategies that make more effective use of their capital.”
Sheiner said he has repeatedly heard this message from LPs and that is what convinced him of the need for a new type of buyout firm. “When innovating, sometimes you need a blank sheet of paper,” he said. The result was Altas Partners.
Altas collaborates with investors that share its orientation. The firm’s model features less imposing fees, less utilization of leverage in deals, and longer-lasting majority stakes in diverse North American companies that are “hard to replicate,” Sheiner said. All aspects of the Altas Partners’ culture – such as the structure of management, compensation and the selection of advisors – are designed to align with the firm’s novel approach to ownership, he notes.
Since its founding last year, Altas Partners has grown to a team of seven professionals, has secured its first backer and is looking to invest up to US$500 million in high-quality businesses, Sheiner said.
As might be expected, he is bullish about Canadian private equity. “The Canadian market has emerged strongly and consistent with the size and stability of the economy,” he said. “It’s a very attractive market, though it remains under-served.”
Sheiner is particularly proud of the market role played by ONCAP, established by Onex in 1999. He is also proud of the relationship he developed with Michael Lay (ONCAP’s managing partner, and formerly of Teachers’ Private Capital). He said the two worked closely to build ONCAP into “one of the pre-eminent mid- cap firms in North America.”
KIRK FALCONER, PE HUB
Scott Werry to Join Altas

TORONTO PRIVATE EQUITY FIRM HIRES PROVIDENCE VETERAN
Toronto-based Altas Partners, a private equity firm trying out a new model with longer-term investments, has hired a veteran of top U.S. telecom buyout fund manager Providence Equity Partners.
Altas Partners, founded by long-time Onex Corp. executive Andrew Sheiner, this week brought in Scott Werry as a principal.
Providence is perhaps best known in Canada for partnering with Ontario Teachers’ Pension Plan to very nearly acquire BCE Inc. in the world’s largest leveraged buyout, just as the financial crisis was beginning. (For a while, Onex was part of a rival consortium stalking BCE but backed out.) Mr. Werry had been with Providence since 2005, and looked in particular at investments in communications and business services. He was a director of Canada’s Q9 Networks, which was acquired last year by BCE, Ontario Teachers, Providence and Madison Dearborn Partners – basically the same group behind the BCE buyout plan.
Before that, he worked at an investment banking firm known as McColl Partners.
Altas is focused on investments of $75-million to $500-million, and says its model can provide returns that are similar to “traditional” private equity funds but with lower risk.
The idea is to own companies for longer than the regular period of roughly five years, with less debt, and emphasize multiples of invested capital as a yardstick.
BOYD ERMAN, THE GLOBE AND MAIL
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