Reflecting on 2024
As we reflect on 2024, we are proud of the continued success and outstanding performance of each of our Funds. This past year was marked by significant milestones, and we look forward to discussing the drivers of this performance and how we intend to continue these trends into 2025.
In 2024, both the Dental Fund and IISF III achieved significant milestones, laying the foundation for exceptional growth. The Dental Fund expanded its network to 33 clinics, launched a new equity offering with nearly $70 million raised, and achieved a balanced 50/50 capital structure, positioning it for scalable growth in 2025. Meanwhile, IISF III saw strong execution with two key asset sales, delivering 10% in distributions, and recorded NAV growth across both series, driven by its proven industrial strategy. Both funds are poised to capitalize on their momentum, leveraging their solid foundations for continued success in the year ahead.
Strategic Clinic Acquisitions
As 2024 comes to a close, we are proud to reflect on a year that solidified the foundation for the Dental Fund’s next phase of growth. With two key acquisitions and a restructured capital base, we have taken significant steps to position the Fund for long-term success and exceptional expansion opportunities in the coming years.
This year, we expanded our network with the successful acquisition of two additional clinics, bringing our total to 33. Each acquisition reflects our commitment to identifying high-quality assets that align with our strategy of delivering consistent returns while setting the stage for future scalability.
NEW: Dental Equity
In 2024, we also introduced a new equity offering, marking a transformative moment for the Fund. This offering has opened the door for investors to access the growth upside of our platform for the first time. The response from our investor base has been overwhelmingly positive, as evidenced by the strong demand for conversions from debenture to equity. By year-end, $47 million in debentures had been successfully converted, a testament to investor confidence in the Fund’s potential.
Following the conversions, the Fund now has nearly $70 million in equity. This significant inflow has positioned the Fund with a balanced capital structure, with an approximate 50/50 split between equity and debt. This optimal structure ensures a resilient foundation for sustained growth.
Into 2025
As we look ahead to 2025, the groundwork laid this year will enable us to pursue an ambitious growth agenda. With a robust acquisition pipeline, a strong capital position, and an engaged investor base, the Dental Fund is primed to capitalize on new opportunities and achieve its growth objectives.
We are grateful for the trust and support of our investors, partners, and stakeholders. Together, we are laying the foundation for exceptional growth, and we look forward to another transformative year ahead.
Strategic Asset Sales
This year saw the successful sales of two assets, which were a testament to the realization of our industrial strategy. In July, the sale of IFSS provided an additional 2% distribution to unitholders. This was followed in December by the sale of Insite Engineering, an outstanding carve-out transaction from Newlook’s wastewater treatment platform that strongly benefited unitholders. Both Fund III transactions in 2024 effectively highlighted our ability to capitalize on market opportunities as they arise.
Robust Distributions and NAV Increases
The overall performance of IISF III in 2024 was further demonstrated by the Fund’s ability to distribute a total of 10% to unitholders. This strong distribution performance reflects our commitment to providing consistent returns while maintaining a disciplined approach to our investment strategy. In addition to these target exceeding distributions, the Fund experienced healthy growth in net asset value (NAV). As of Q3, Series A recorded an impressive 5.2% NAV increase, while Series B saw an even higher increase of 6.2%. These gains underscore the strength of the underlying portfolio and the effectiveness of our industrial strategy in driving value creation. Further reviews are pending to determine Q4 NAV.
Into 2025
Looking ahead to 2025, IISF III is poised to build on this momentum. A major upcoming milestone is the anticipated sale of a third asset in the first quarter of the year. This transaction, which is expected to be Newlook’s largest exit to date, highlights the continued potential of Fund III to deliver meaningful returns to its investors.
The accomplishments of 2024 reflect the fruition of our industrial strategy and the dedication of our team to maximizing value for our unitholders. As we turn our focus to the opportunities of 2025, we are grateful for your continued confidence and support, and we remain committed to delivering another year of outstanding performance.
About Newlook Capital Inc.
Newlook Capital Inc. is a private equity firm that currently manages Newlook Dental Services Trust and Newlook Industrial and Infrastructure Services Fund II and III. Led by dedicated, experienced and aligned management teams, the firm’s current portfolio includes industrial services in Canada and the US and dental practices exclusively in Canada. Newlook Capital’s commitment to specialization and strategic alignment drives its success in identifying and nurturing opportunities within these sectors across North America. This press release is for information only and does not constitute, nor should it be construed as, an offer to sell or a solicitation to buy any securities. For more information, visit www.newlookcapital.com.
Please direct any questions or requests for information to:
Kyle Sinden
519-550-6912
