Novacap vs Altas - Who's Top Dog In Canada After Onex's Fall?
Altas has a larger latest flagship fundraise (~$4bn USD vs ~$2bn USD) but Novacap just closed a $1bn Digital Infrastructure fund and targeting $2.75bn Fund VII closing this next few months, which would be huge given the current fundraising environment. Both similar total AUM across all vintages (~$10bn). Not sure about returns but assume both are top quartile.
Which one is the best PE shop in Canada after Onex's fuck up with Westjet?
Based on the most helpful WSO content, Altas and Novacap both have strong cases for being top-tier PE shops in Canada, especially in light of Onex's recent challenges. Here's a breakdown to help you evaluate:
Altas Partners
Novacap
Comparison
Verdict
If you're looking for a globally recognized name with strong exits and competitive compensation, Altas might be the better choice. However, if you're interested in a firm with a growing focus on digital infrastructure and a potentially more balanced culture, Novacap could be a strong contender. Both are top-tier in Canada, but the "best" depends on your career goals and priorities.
Sources: Brookfield vs. Onex vs. Altas [TORONTO OFFICE] - Which One is Best?, Brookfield Infrastructure Toronto, https://www.wallstreetoasis.com/forum/investment-banking/best-ib-groups-in-canada?customgpt=1, Thoughts on Bain Capital PE?, Best Up-and-coming/MM PE funds
Novacap top dog for sure.
Most of the Novacap portfolio companies are Canadian where Altas has more focus on US companies.
Performance wise, Novacap also crushed it. Previous 4 TMT fund all generated 20% + IRR with notable exit of Nuvei. Altas might have more impressive talent but it won’t necessarily translate into performance.
Obviously pay is not as good for Novacap but still have great deal exposure. The French Canadians really know how to do business within the domestic market.
Not sure if serious - nothing wrong with Novacap, but just because they benefit from a geographic moat - and the benefit is real - does not mean that it's a comp for Altas.
They don't only invest in MTL do they? Also, pretty impressive of Quebec to put off that kind of output to make it as successful a firm as it is.
Altas is top dog.
They are a LT oriented PE fund - their results take time to actualize. They’ve knocked it out of the park with Pye-Barker and they have a strong portfolio of assets.
They co-invest alongside the best MFs and interestingly bet really large. They manage ~$10bn and have like ~10 investments. Their check sizes are huge relative to their AUM and they invest with serious conviction.
I can’t speak to Novacap but am bullish on Altas over the next 10-20 years. I expect ~$20bn in AUM by ~2030. They are the firm that attracts the best Canadian minds in finance that are stateside but want to come home.
While pedigree is absolutely not the sole predictor of future success, they have some heavy hitters and after a certain point I do think past success trends towards future success.
You wouldn't happen to be Associate 1 at Altas with all this glazing right? Joking aside, do you know specific performance for Pye-Barker (IRR & MOIC)? Also how do you visualize them adding $10bn in AUM within 5 years given their latest fundraise of $4bn was less than 2 years ago? They would have to raise $10bn for their next fund or raise multiple funds, meaning 3 funds raised within a 7 year period in this environment.
I personally think they will achieve an ~$8bn fund for their next raise within 5 years and their assets will naturally climb ~$2bn in that time frame (if not more).
Not at Altas, got to final round and got cut but wish I was. Though maybe skipping the associate years there is nice as it’s a total sweatshop for juniors.
He’s glazing hard. By “co-invest alongside the best MFs” they mean minority investments on the back of a MF leading the deal. I’m not sure where the 100+ a week hours come from just to do 1-2 deals a year all led by a larger GP. The performance is extremely mid, verging on a secondary fund.
Bump
Altas and it's not close
How's Brookfield's corporate PE arm?
Its based in NYC
del
Altas is a UMM that competes with top private equity funds in the US. Their fund is denominated in USD, they pay in USD, and are in-line with other UMM / MFs in the US. Massively has grown fund size from $1B to $3B to $4B. Would think of them more in-line with Berkshire, LGP, BayPine, Onex, etc.... vs. the Canadian middle-market PE shops (Clairvest, Novacap, Alignvest, Peloton).
$10B AUM with something like 8 investments, so very concentrated fund, and they only invest in their most high conviction ideas and write massive cheques. Track record has been really good. Seniors are also very impressive from megafunds in the US.
Know a guy who works there, and the junior team gets absolutely grinded (100+ hour weeks during live deal sprints, but happens 3-4 times a year).
Did your guy who works there mention what hours were like outside of deal sprints?
From what I've heard it's not too bad, but it is an intense culture in general.
I interviewed there and got to final round, the people I spoke to were extremely sharp and very hard working. Candidly, it scared me about working there - I got the impression that the level of due diligence they do is second to none. I also networked with some associates there before interviewing (naturally) and they said the seniors above them were geniuses (obviously a small sample size but still).
They are the most "value investing" oriented fund I can think of (outside of some players in the US) and that necessitates a level of DD above what other PE funds do, which translates to a significant amount of time.
These are some good additional points.
The fact they pay in line with top UMM / MFs (but CAD equivalent, so associate 1s pull ~C$450...) is a testament to the calibre of person they are after (and what they demand of their juniors).
Anyone know what Novacap pays? That's key information to answer OP's question
Novacap pay is the same/slightly lower than big 5 lmao
.
So roughly $300k associate 1? Honestly not bad, I thought It'd be like $175k considering market for the MM PE firms is in the low 200s in Torotno
Brookfield thropples them over and over. There are PE professionals in Toronto too.
Westjet looks pretty good based on Friday's news...hardly a fuck up
Onex bought WestJet in 2019 for $5bn and Delta/Korean Air just bought 25% from Onex for $550MM six years later. Hardly a success
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