Clairvest to Realize 40% IRR on Its Investment in PEER 1

Clairvest to Realize 40% IRR on Its Investment in PEER 1 
TORONTO, ONTARIO -- (Marketwire) -- 01/29/13 -- Pursuant to a
statement released on December 21, 2012, Clairvest Group Inc.
(TSX:CVG) and Clairvest Equity Partners III Limited Partnership ("CEP
III", collectively "Clairvest") announced today the sale of their
common shares of PEER 1 Network Enterprises Inc. ("PEER 1") to Cogeco
Cable Inc. ("Cogeco Cable").  
In August 2009, Clairvest invested $25.2 million in PEER 1. Under
terms of the sale, Clairvest received sale proceeds of $79.5 million
which took Clairvest's total proceeds over the investment's life to
$81 million, which equates to 3.2 times invested capital and an
internal rate of return ("IRR") of 40%. Consistent with its
beneficial ownership, Clairvest Group Inc. realized 25% of this
amount, or $20.3 million, compared to the September 30th carrying
value of $14.7 million.  
"When we were looking to invest in the IT infrastructure industry,
PEER 1 was by far our first choice based on its financial metrics,
scale, profitability and management," said Ken Rotman, Co-CEO of
Clairvest. "The financial return achieved on this investment is a
tribute to the Company's management team who has done an outstanding
job at strategically growing PEER 1 to become one of the leading
companies in its market." 
Since Clairvest made its investment, PEER 1 embarked upon an
aggressive capital investment program. Over the past two years, the
company completed the construction of two flagship data centres in
Toronto and the UK. Significant investment in human capital and
physical infrastructure in the UK improved PEER 1's market position
and enabled it to purchase a UK competitor in July 2012. This
acquisition moved PEER 1 to one of the market leaders in the UK.  
"We appreciate the support provided by Clairvest over the past three
and a half years," commented Fabio Banducci, CEO of PEER 1. "The
addition of Clairvest to our shareholder base and board of directors
was an important part of the overall upgrade to our organization."  
"PEER 1 is a great example of an internet infrastructure provider
that continues to innovate and move upmarket, thereby reaping the
benefits of a high quality customer base," said Mitch Green,
Principal and IT Services domain lead for Clairvest. "
PEER 1's
management does a terrific job of investing resources into projects
that enhance the service offering and produce sound economic results,
which make it an attractive strategic acquisition for Cogeco Cable.
We wish this outstanding group continued success in the years to
come," added Mr. Green.  
About Clairvest 
Clairvest Group Inc. is a private equity management firm which
invests its own capital, and that of third parties through the
Clairvest Equity Partners limited partnerships, in businesses that
have the potential to generate superior returns. In addition to
providing financing, Clairvest contributes strategic expertise and
execution ability to support the growth and development of its
investee partners. Clairvest realizes value through investment
returns and the eventual disposition of its investments.
Contacts:
Clairvest Group Inc.
Maria Klyuev
Director, Investor Relations and Marketing
(416) 925-9270
(416) 925-5753 (FAX)
mariak@clairvest.com
 
 
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