News Column

Clairvest Reports Fiscal 2014 Fourth Quarter and Year-End Results

June 25, 2014

TORONTO, ONTARIO--(Marketwired - June 25, 2014) - Clairvest Group Inc. (TSX:CVG) today reported results for the quarter and year ended March 31, 2014. (All figures are in Canadian dollars unless otherwise stated)

Highlights

-- March 31, 2014 book value was $377.1 million or $24.92 per share versus $24.82 per share at December 31, 2013 and $23.12 per share at March 31, 2013, an increase of $1.80 per share over the last twelve months. Cash or near cash of $115.8 million represented 30.7% of the March 31, 2014 book value, or $7.65 per share -- Net income for the quarter and for the year was $1.5 million or $0.10 per share and $30.7 million or $2.03 per share respectively -- Clairvest and its managed funds made a follow-on investment of US$7.0 million in County Waste of Virginia, LLC ("County Waste") -- Subsequent to quarter end, Clairvest completed the first closings of Clairvest Equity Partners V ("CEP V") at $533 million -- Subsequent to quarter end, Clairvest and its managed funds made a follow-on investment of $13.3 million in Discovery Air Inc. ("Discovery Air") pursuant to the standby commitment for a rights offering -- Subsequent to quarter end, Clairvest declared an annual ordinary dividend of $1.5 million, or $0.10 per share, and a special dividend of $2.3 million, or $0.1492 per share, both payable on July 25, 2014



Clairvest's book value was $377.1 million or $24.92 per share at March 31, 2014, compared with $24.82 per share at December 31, 2013 and $23.12 per share at March 31, 2013. The increase in book value per share was primarily attributable to net income for the quarter of $1.5 million, or $0.10 per share. Net income for the year was $30.7 million or $2.03 per share.

During the quarter ended March 31, 2014, Clairvest and its managed funds made a follow-on investment of US$7.0 million in County Waste, a private regional solid waste management company based in West Point, Virginia. The investment was made in the form of secured convertible debentures. Clairvest's portion of the investment was US$1.9 million.

As previously announced, subsequent to quarter end, Clairvest completed the first closing of CEP V, a successor fund to Clairvest Equity Partners IV ("CEP IV"). The amount of the first closing of CEP V was $518 million, 104% of the fund's $500 million target or 86% of the $600 million cap, which is comprised of a $180 million co-investment commitment from Clairvest and $338 million from third party investors. Subsequent to the first closing CEP V closed on an additional $15 million of third party capital bringing total capital committed to CEP V to $533 million, or 89% of the cap. Clairvest has the right to increase its commitment to $200 million prior to the end of fund raising period. The newly raised third party capital is consistent with Clairvest's strategy of investing its own capital alongside that of third party investors. The new capital will provide Clairvest with greater scale and is expected to generate an annual increase in net management fees and priority distributions over the next few years.

"The successful first closing of CEP V is a testament to our unique private equity offering and the results we have generated for our investors to date. We thank many of our new and returning investors for their continued support and trust in our strategy", said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest.

Subsequent to quarter ended March 31, 2014, Clairvest and its co-investors in Discovery Air, including its managed funds, made a follow-on investment of $13.3 million in Discovery Air to acquire 15,489,851 common shares of Discovery Air for a 48.8% ownership interest. Discovery Air is a specialty aviation services business operating across Canada and in selected location internationally. Clairvest's portion of the follow-on investment was $4.2 million for a 15.3% ownership interest in Discover Air on a fully-diluted basis.

Subsequent to quarter ended March 31, 2014, Clairvest declared an annual ordinary dividend of $0.10 per share and a special dividend of $0.1492 per share, such that in aggregate, the dividends represent 1% of the March 31, 2014 book value. Both dividends will be payable July 25, 2014 to common shareholders of record as of July 9, 2014 and are eligible dividends for Canadian income tax purposes.

Summary of Financial Results - Unaudited

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Financial Performance Measures Quarters ended Year ended March 31 March 31 ----------------------------------- 2014 2013 2014 2013 ---------------------------------------------------------------------------- ($000's, except per share amounts) $ $ $ $ ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net realized gains (losses) on corporate investments - (377) (25) 9,009 ---------------------------------------------------------------------------- Net changes in unrealized gains (losses) on corporate investments (462) 9,009 27,581 4,598 ---------------------------------------------------------------------------- Net income 1,452 10,111 30,746 35,763 ---------------------------------------------------------------------------- Basic net income per share 0.10 0.67 2.03 2.36 ---------------------------------------------------------------------------- Fully diluted net income per share 0.10 0.66 1.99 2.32 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Financial Condition Measures March March 2014 2013 ---------------------------------------------------------------------------- ($000's, except per share amounts) $ $ ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total assets 411,774 378,936 ---------------------------------------------------------------------------- Total cash, cash equivalents and temporary investments(1) 115,786 174,513 ---------------------------------------------------------------------------- Total corporate investments 241,066 176,390 ---------------------------------------------------------------------------- Total liabilities 34,626 29,248 ---------------------------------------------------------------------------- Book value 377,148 349,688 ---------------------------------------------------------------------------- Book value per share 24.92 23.12 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



(1) Excludes restricted temporary investments where applicable

Clairvest's annual 2014 financial statements and MD&A are available on the SEDAR website at www.sedar.com and on the Clairvest website at www.clairvest.com.

About Clairvest

Clairvest Group Inc. is a private equity investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") 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.

Forward-looking Statements

This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, its CEP limited partnerships and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries, its CEP limited partnerships and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions and regulatory risks. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

www.clairvest.com

FOR FURTHER INFORMATION PLEASE CONTACT: Clairvest Group Inc.Maria Klyuev Director, Investor Relations and Marketing (416) 925-9270 (416) 925-5753 (FAX) mariak@clairvest.comwww.clairvest.com Source: Clairvest Group Inc.


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Source: Marketwire (Canada)


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