Fulcrum pumps growth equity into milk protein company

Canadian private equity firm Fulcrum Capital Partners has provided growth capital out of its $344 million Private Equity Fund V to Vitalus Nutrition, a provider of specialty cream and milk protein ingredients.

The equity commitment will help expand product offerings, including the development of a process to produce a proprietary prebiotic fiber, and fund the construction of a new facility in Winnipeg. 

Based in Abbotsford, British Columbia, Canada, Vitalus provides ingredients — for baking, confections, dairy products, snack foods, infant formula, protein drinks, nutrition bars, and more — to the food, beverage, and nutraceutical sectors   

The investment marks the sixth platform investment made from Fund V, which closed in July 2015 on $344 million, 25 percent more than the fund’s initial goal of $275 million. About 20 domestic and international LPs committed to the fund.

The fund invests mainly in Canadian mid-market companies in manufacturing, resource services, business services, distribution and logistics, and consumer products, making individual investments between $15 million and $35 million.

Fulcrum manages over C$650 million ($491.3 million; €465 million) of capital through three private equity funds and a portfolio of mezzanine investments, typically supporting management buyouts, acquisitions, leveraged buyouts, corporate growth, and recapitalizations.

The firm has made additional investments into GI Group, a maker of paintballs and related products and gel capsules for pharmaceutical applications; JNM Group, a manufacturer of automotive tool solutions, stampings and assemblies; and Innovative Steam Technologies (IST), a producer of heat recovery steam generators for power and oil industry applications.  

Principals at the firm did not return phone calls seeking additional comment by press time.