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KV Capital's Private Equity Division Partners With Nelson Lumber to Launch Building Products Portfolio
[May 15, 2024]

KV Capital's Private Equity Division Partners With Nelson Lumber to Launch Building Products Portfolio

KV Capital, a Canadian alternative investment manager, announced today a strategic partnership with Nelson Lumber Company Ltd., a leading Alberta-based supplier of commercial and residential building supplies for renovations and new home construction, along with Nelson Homes, a manufacturer of ready-to-move and prefabricated homes (collectively referred to as 'Nelson Lumber').

This partnership marks a significant extension of KV Capital's private equity division into the building products arena and enhances KV Capital's mission to support real estate development in the markets we operate in. Working alongside ATB Private Equity, BDC Capital, and the current shareholders of Nelson Lumber, this initiative propels Nelson Lumber's growth ambitions while respecting and building on the Nelson legacy and brand established over its 75 years of existence.

"We're eager to partner with firms that share our vision for the future as it relates to building supply sales, manufactured building components, building packages, and premanufactured home production. Together we will continue to improve our customer's experience, boost the efficiency of our operations, and expand into new markets and offerings," explains Jason Pehl, President of Nelson Lumber.

"Nelson Lumber's reputation, culture, and proven track record make it an ideal inaugural investment for KV Private Equity Fund III," said Aleem Virani, CEO of KV Capital. "We invest in companies with significant potential, and we're excited by how this partnership will drive success for Nelson Lumber, KV Capital, and our stakeholders-particularly our ability to better serve our customers and investors."

"ATB Private Equity is thrilled to partner with KV Capital, BDC Capital, and the current shareholders of Nelson Lumber, united in our vision toexpand the Nelson Lumber platform. We are eager to work with Nelson Lumber's management team to accelerate growth and further enhance their industry-leading reputation established over the past 75 years," stated Terry Freeman, Head of Investments at ATB Private Equity.

"Nelson Lumber, a leading supplier of building supplies and material packages, is well-positioned for growth-a trajectory it has maintained for the past 75 years. Thanks to its dedicated management team's commitment to quality and trust, Nelson Lumber is set to play an increasingly significant role in Alberta's housing industry, especially during this period of exciting provincial growth," said Tabreez Lila, Managing Director, Growth and Transition Capital, Prairies at BDC Capital.

This transaction marks the launch of KV Capital's building products private equity strategy. As the first investment in this space through KV Private Equity Fund III, it demonstrates KV Capital's commitment to identifying and nurturing high-growth companies in this dynamic sector.

KV Capital invites inquiries from prospective investors and companies, as the fund remains actively open for investment and deployment opportunities.

About Nelson Lumber
Founded in 1949 in Lloydminster, Alberta, Nelson Lumber has grown from a small lumber store to a prominent leader in the building materials industry. Now an employee-owned company for over two decades, Nelson Lumber is expanding its horizons with the addition of KV Capital. Serving as the preferred supplier for both construction professionals and home builders, Nelson Lumber and Nelson Homes offer a comprehensive range of building materials and premanufactured home solutions. With a steadfast commitment to quality, innovation, and value, Nelson Lumber leverages its extensive network across Alberta to meet the diverse needs of Western Canada's construction sector.

About KV Capital
Founded in 2006 and based in Edmonton, Alberta, KV Capital is a Canadian, alternative investment manager with approximately $500 million in assets under management. KV Capital's funds are split into a diverse range of asset classes including private operating businesses, real estate, and mortgages. KV Capital has been on the Profit 500 ranking of Canada's fastest-growing companies for six consecutive years and has funded over $1.5 billion in investments across several different asset classes.

About ATB Private Equity
Established in 2016, ATB Private Equity is dedicated to supporting Alberta based companies through growth equity and transition capital. Across two funds, ATB Private Equity has $100 million of committed capital to help grow and support the Alberta economy.

About BDC Capital
As Canada's bank for entrepreneurs, BDC is a partner of choice for all entrepreneurs looking to access the financing and advice they need to build their businesses and tackle the big challenges of our time. Our investment arm, BDC Capital, offers a wide range of risk capital solutions to help grow the country's most innovative firms. We are one of Canada's Top 100 Employers and Canada's Best Diversity Employers.

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