Clairvest Reports Fiscal 2026 Fourth Quarter and Year End Results

Executive Summary

• Clairvest reported Q4 and fiscal 2026 net income of $62.3 million ($4.56/share) and $112 million ($8.04/share), respectively, driven by investment realizations, fair value adjustments, and carried interest increases.
• The company successfully exited Acera Insurance and Star Waste, achieving 3.0x and 2.6x multiples on invested capital, while simultaneously closing three new CEP VII investments totaling $271.2 million and securing a new US gaming asset.
• Clairvest declared an annual dividend of $0.10 per share and a special dividend of $0.8660 per share (payable July 24, 2026), alongside share repurchases that remained accretive to book value per share.

Key Details

• Financial Performance: Q4 net income was $62.3 million ($4.56/share); fiscal 2026 net income was $112 million ($8.04/share). Net investment gain for Q4 was $79.97 million (vs $11.44M in 2025) and $140.94 million for the fiscal year (vs $15.25M in 2025).
• Book Value & Liquidity: Book value reached $1.293 billion ($96.60/share) at March 31, 2026, up from $91.66/share (Dec 31, 2025) and $88.30/share (Mar 31, 2025), representing 10.5% YoY growth inclusive of dividends. Approximately 30% of book value (~$29/share) was held in cash, cash equivalents, and temporary investments.
• Acera Insurance Divestment: Completed sale of ownership interest for total proceeds of $406.5 million, representing a 3.0x multiple on invested capital. Clairvest’s portion consisted of $87.9 million in cash and a $22.1 million promissory note.
• Star Waste Divestment: Sale completed April 1, 2026, for total proceeds of US$138.6 million, representing a 2.6x multiple on invested capital. Clairvest’s portion was US$37.5 million. The investment was carried at sale value as of March 31, 2026.
• New Investments & Acquisitions: Entered agreement to acquire a gaming investment in the Eastern US (US$33 million deposited in escrow pending regulatory/contractual approvals). Subsequent to year-end, closed three new CEP VII investments totaling $271.2 million, with Clairvest’s portion at $67.7 million.
• Dividend Declaration: Declared an annual ordinary dividend of $0.10 per share and a special dividend of $0.8660 per share (totaling $12.9 million), payable on July 24, 2026, to common shareholders of record as of July 3, 2026. Dividends represent 1% of the March 31, 2026 book value.
• Share Repurchases: Purchased and cancelled 305,200 shares in Q4 for $22.7 million ($74.41/share average) and 784,700 shares for the fiscal year for $57.7 million ($73.53/share average). Both repurchases were accretive to book value per share.
• Balance Sheet Highlights: Total assets of $1.48 billion, total liabilities of $186.4 million, and 13.39 million common shares outstanding as of March 31, 2026.

Notable Quotes

• “Fiscal 2026 was an exceptionally active year for Clairvest. While our results were impacted by the negative regulatory outcome at Head Digital Works, the year also demonstrated the resilience and underlying strength of our portfolio as demonstrated by the realizations on F12.net and Acera during fiscal 2026 and Star Waste subsequently. These exits exemplify what we seek to achieve with every partnership: backing exceptional entrepreneurs in sectors we know well and helping them build businesses of strategic significance. At the same time, signing and closing three new CEP VII investments during and after the quarter underscores the momentum we are building in that fund. As we continue to concentrate our efforts in North America — where our track record is strongest and the pipeline remains active — we remain focused on deploying capital with discipline and conviction alongside the right partners,” said Ken Rotman, CEO of Clairvest.