Round13 Capital Completes Acquisition of TIMIA Group from Montfort Capital, Expanding Offering to Include Venture Debt

• Michael Wallace appointed Chief Executive Officer of TIMIA Capital
• TIMIA positioned to grow into Canada's premiere technology lender, in partnership with Round13
• Round13 to work with management to expand TIMIA's lending capabilities

TORONTO, Nov. 4, 2024 /CNW/ - Round13 Capital ("Round13"), a leading Canadian venture and growth-stage investment firm, today announced the successful completion of its acquisition (the "Transaction") of TIMIA Capital ("TIMIA"), an established venture debt platform, from Montfort Capital Corp. ("Montfort") (TSX-V:MONT). Round13 is well positioned to support TIMIA as it grows to become a best-in-class technology lender. While the two businesses will remain independently managed, they will collaborate on business development, underwriting, portfolio company support, and fundraising efforts. Collectively, Round13 and TIMIA will be able to offer compelling capital solutions to leading entrepreneurs in Canada and across North America.

Founded in 2015, TIMIA's mission is to provide frictionless venture debt to empower tech entrepreneurs' growth while preserving equity and control. The company provides debt capital loans to growing software-as-a-service (SaaS) companies.

"We are thrilled to welcome TIMIA Capital into the Round13 family," said Brahm Klar, Managing Partner at Round13. "We have been researching the private credit sector for some time and believe venture debt is an appealing product to investors and borrowers alike. Our intention is to significantly grow TIMIA Capital's lending capabilities and support an underserved segment of the private credit market."

Round13's flagship venture growth funds will continue to target concentrated equity investments ranging from $10-$30 million, securing significant minority or majority positions in promising companies. Meanwhile, TIMIA will focus on providing non-dilutive debt financings between $1-$10 million for North American businesses in the technology sector.

Round13 is also pleased to announce Michael Wallace will be joining TIMIA as Chief Executive Offer and Monique Morden will be joining the company's Board of Directors. Wallace brings a wealth of experience in the fintech and alternative debt sectors to his new role. Most recently, he served as President of Torinit, a digital services firm and CEO of FindWRK, a marketplace startup in the recruiting industry. Prior to that he spent six years growing Langhaus Financial into Canada's largest alternative life insurance lender. He joined Langhaus in 2015 as its first executive hire, after starting his career in management consulting with Bain & Company.

"I am excited to partner with Round13 and the TIMIA team to build North America's premier venture debt platform," Wallace said. "Having worked as a leader in lending businesses and early-stage technology businesses throughout my career, I believe TIMIA is very well positioned to fill a notable need in the Canadian private credit market." 

Valued at $6.5 million, the Transaction includes an all-cash purchase price of $4.5 million, and the acquisition from Pivot Financial I Limited Partnership ("Pivot"), an affiliate of Montfort, of $2 million in principal indebtedness of TIMIA Capital Holdings Limited Partnership. In connection with the Transaction, Round13 has acquired Montfort's right, title, and interest in the entities comprising the TIMIA Capital business unit, and Montfort's equity interests in the TIMIA Group investment funds.

The Transaction was first announced by Montfort and Round13 in their joint press release on October 17, 2024.

About Round13 Capital

Founded in 2013, Round13 Capital is a leading venture and growth equity investment platform based in Toronto, Canada. The firm invests in high-potential companies across a range of sectors, with a focus on supporting their growth and development over the long term. Round13's team of experienced investors and operators bring a wealth of expertise and insight to every investment, helping portfolio companies to realize their full potential. Round13 is dedicated to creating long-term value for its investors and the companies it supports. For further information, please visit www.round13.com.

About TIMIA Capital

Founded in 2015, TIMIA Capital provides flexible growth capital to technology companies. Our debt financing enables entrepreneurs to drive growth while retaining ownership and control of their business. For further information, please visit www.timiacapital.com.

SOURCE Round13 Capital

Media Contact: Sandy Blackwood, FGS Longview, Phone: [phone], [email protected]