Clairvest Reports Fiscal 2026 Third Quarter Results

Executive Summary

• Clairvest reported Q3 FY2026 net income of C$105.1 M (C$7.65 per share) driven by two large investment exits, raising book value 9% quarter‑over‑quarter to C$1.255 B ($91.66 per share).
• Sold its interest in F12.net for C$44.1 M (4.6× invested capital) and realized a C$87.9 M cash plus C$22.1 M promissory‑note exit from Acera Insurance (3.0× invested capital).
• Entered an agreement to acquire Northfield Park racino from MGM for US$546 M, with approximately US$165 M equity commitment (≈25% by Clairclair) and a US$41 M escrow deposit.

Key Details

• Book Value: C$1,255 M ($91.66 per share) at 31 Dec 2025 vs. C$1,154 M ($83.92) at 30 Sep 2025 – up 9% QoQ.
• Net Income (Quarter): C$105.1 M or C$7.65 per share.
• Net Income (Nine‑Months): C$49.7 M or C$3.74 per share; includes a C$128 M write‑down of Head Digital Works in Q2.
• F12.net Exit: Proceeds C$164 M total; Clairvest’s share C$44.1 M cash vs. carrying value C$23.2 M → 4.6× multiple.
• Acera Insurance Exit: Total proceeds C$325 M (C$87.9 M cash + C$22.1 M promissory note for Clairvest); carrying value C$107 M → 3.0× multiple.
• Northfield Park Acquisition: Purchase price US$546 M cash; equity commitment ≈US$165 M (Clairvest ~25%); escrow deposit US$41 M placed pending regulatory approvals.
• Share Repurchase: Cancelled 60,500 shares at C$71 per share for total cost C$4.3 M, adding $0.09 per share to book value.
• Liquidity Position (31 Dec 2025): Cash & equivalents $217 M; acquisition entities cash $119 M → total available cash $336 M (27% of book value, ≈C$25 per share).
• Financial Tables: Net investment gain C$119.5 M (quarter); net carried interest –C$3.36 M; distributions/interest/dividends/fees C$13.8 M; total expenses C$9.4 M; basic EPS C$7.65.

Notable Quotes

• Ken Rotman, CEO: “Our two most recent exits… demonstrate our ability to help entrepreneur partners achieve ambitious growth plans and build strategically significant businesses.”
• Ken Rotman (on Lionel Schipper): “We will miss Lionel deeply… grateful for his enduring impact on Clairvest.”