Clairvest Reports Fiscal 2026 Third Quarter Results
MWN-AI** Summary
Clairvest Group Inc. (TSX: CVG) reported robust financial results for its fiscal 2026 third quarter, showcasing significant growth and successful investment realizations. As of December 31, 2025, the company’s book value surged to $1.255 billion, translating to $91.66 per share, a notable 9% increase from $1.154 billion ($83.92 per share) on September 30, 2025. The net income for the quarter reached $105.1 million, or $7.65 per share, largely driven by high-value exits from investments in F12.net and Acera Insurance Services Ltd., reflecting returns of 4.6x and 3.0x on invested capital, respectively.
For the nine months ending December 31, 2025, Clairvest reported a net income of $49.7 million ($3.74 per share), which included a $128 million write-down on Head Digital Works from earlier in the fiscal year. Significant cash reserves were reported, with $336 million available, representing approximately 27% of the total book value. This robust financial footing is complemented by recent share repurchases, totaling 60,500 shares for $4.3 million, contributing an additional $0.09 to the book value.
Additionally, Clairvest announced the agreement to acquire MGM Northfield Park, a regional racino in Ohio, for approximately US$546 million, pending regulatory approvals. This move further aligns with Clairvest's strategy of partnering with entrepreneurial management teams to cultivate strategically significant businesses.
Ken Rotman, CEO of Clairvest, emphasized the company’s ongoing commitment to long-term value creation through strategic collaborations and expressed deep condolences for the recent passing of founding board member Lionel Schipper, whose contributions have significantly shaped the firm’s journey since inception.
MWN-AI** Analysis
Based on Clairvest Group Inc.'s third-quarter results for fiscal 2026, several key indicators suggest a favorable outlook for investors. The 9% sequential increase in book value, now at $1,255 million (or $91.66 per share), reflects solid performance and effective management execution in their investment strategy. Notably, the realization of significant multiples on investments, including a 4.6x on F12.net and a 3.0x on Acera Insurance, demonstrates Clairvest’s proficiency in maximizing shareholder value through strategic exits.
The company’s net income for the quarter, reported at $105.1 million or $7.65 per share, significantly outpaces previous quarters, bolstered by these successful investment exits. Despite the overall reduction in net income for the nine months period—affected by a substantial write-down of Head Digital Works—Clairvest’s solid cash position of $336 million positions it well for future investments and acquisitions, reflecting a healthy balance sheet.
Investors should note the recent acquisition agreement for MGM Northfield Park, which signifies Clairvest’s commitment to growth in the gaming and entertainment sector. This move not only demonstrates strategic foresight but also diversifies the portfolio, potentially increasing revenue streams.
With substantial cash reserves and a robust investment pipeline, Clairvest is poised for continued growth in the upcoming quarters. Furthermore, the recent share buyback that reduced the number of outstanding shares can enhance earnings per share, benefiting existing shareholders.
Overall, Clairvest exhibits strong fundamentals, prudent management, and the potential for long-term value creation. Investors may consider this an opportune time to acquire shares, leveraging Clairvest’s strategic investment philosophy and solid operational performance to capitalize on future growth.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
TORONTO, Feb. 11, 2026 (GLOBE NEWSWIRE) -- Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2026 third quarter and nine months ended December 31, 2025. (All figures are in Canadian dollars unless otherwise stated)
Highlights
- December 31, 2025 book value was $1,255 million or $91.66 per share compared with $1,154 million or $83.92 per share as at September 30, 2025, up 9% in the quarter
- Net income for the quarter ended December 31, 2025 was $105.1 million or $7.65 per share, primarily due to two investment realizations as described below
- Net income for the nine months ended December 31, 2025 was $49.7 million, or $3.74 per share
- Clairvest and Clairvest Equity Partners VI (“CEP VI”) sold their interest in F12.net (“F12”), realizing a 4.6x multiple on invested capital at closing
- Clairvest and CEP VI agreed to sell their interest in Acera Insurance Services Ltd. (“Acera Insurance”). The transaction closed subsequent to quarter end, realizing a 3.0x multiple on invested capital
- Clairvest and Clairvest Equity Partners VII (“CEP VII”) entered into an agreement to acquire the operations of MGM Northfield Park (“Northfield Park”), a regional racino in Northfield, Ohio, from MGM Resorts International (NYSE: MGM) (“MGM”)
- Clairvest repurchased for cancellation 60,500 shares during the quarter for a total cost of $4.3 million
Clairvest’s book value was $1,255 million or $91.66 per share as at December 31, 2025, compared with $1,154 million or $83.92 per share as at September 30, 2025. For the quarter ended December 31, 2025, Clairvest recorded net income of $105.1 million, or $7.65 per share, which was primarily driven by two investment realizations as described below. Also during the quarter, Clairvest purchased and cancelled 60,500 common shares at an average price of $71 per share, or a total cost of $4.3 million. The share cancellation added $0.09 per share to the book value.
During the quarter, Clairvest and CEP VI sold their interest in F12.net and received proceeds of $164 million representing a 4.6x multiple on invested capital. Clairvest’s portion was $44.1 million, compared to a carrying value of $23.2 million as at September 30, 2025.
Also during the quarter, Clairvest and CEP VI agreed to sell their interest in Acera Insurance. The transaction closed subsequent to quarter end, where Clairvest and CEP VI received $325 million in cash plus $81.5 million in a promissory note. Clairvest’s portion of the proceeds was $87.9 million in cash and $22.1 million of the promissory note. The carrying value as at December 31, 2025 was $107 million compared with $53 million as at September 30, 2025. The transaction, inclusive of the principal value of the promissory note, generated a 3.0x multiple on invested capital.
Also during the quarter, Clairvest and CEP VII entered into an agreement to acquire Northfield Park, a racino near Cleveland, Ohio, from MGM for US$546 million in cash, subject to customary purchase price adjustments. The completion of the transaction is subject to gaming and other regulatory approvals. Clairvest, CEP VII, funds managed by it, and co-investors are expected to invest approximately US$165 million in equity in connection with the transaction, Clairvest’s portion of which is expected to be approximately 25%. As part of the agreement, Clairvest and CEP VII have funded US$41 million into an escrow account prior to closing of the acquisition.
For the nine months ended December 31, 2025, the net income was $49.7 million, or $3.74 per share. The net income for the nine months also reflected a $128 million write down of Head Digital Works which occurred during the second quarter of fiscal 2026.
As at December 31, 2025, cash, cash equivalents and temporary investments excluding marketable securities, as reported under IFRS, were $217 million. In addition, our acquisition entities held $119 million in cash, cash equivalents and temporary investments as at December 31, 2025 bringing total available cash to $336 million. In aggregate, this represented 27% of our book value as at December 31, 2025, or approximately $25 per share.
“At Clairvest, our success is rooted in partnering with aligned and exceptional management teams, and our two most recent exits in CEP VI are a strong reflection of that approach: F12.net in the technology services sector and Acera in the insurance services sector. Both outcomes demonstrate our ability to help our entrepreneur partners achieve their ambitious growth plans and build strategically significant businesses. These realizations further reinforce the positive momentum we are seeing in CEP VI, our 2020 vintage fund. As we look ahead to the remainder of the fiscal year, I am encouraged by the opportunities in our pipeline, and we remain committed to supporting the entrepreneurial vision and ambition that drives long-term value creation.
Someone who embodied that vision, along with the integrity, drive and wisdom to turn ideas into a lasting reality was Lionel Schipper, who passed away last week. Lionel was a founding member of Clairvest’s board, a trusted advisor and steadfast supporter of our company since its inception, offering thoughtful guidance, encouragement and oversight throughout his 39-year tenure at Clairvest. We will miss Lionel deeply. We extend our sincere condolences to Lionel’s family and loved ones, and we remain profoundly grateful for his enduring impact on Clairvest and on us as individuals,” said Ken Rotman, CEO of Clairvest.
| Summary of Financial Results – Unaudited | ||||||
| Financial Results | Quarter ended | Nine months ended | ||||
| December 31 | December 31 | |||||
| 2025 | 2024 | 2025 | 2024 | |||
| ($000’s, except per share amounts) | $ | $ | $ | $ | ||
| Net investment gain | 119,492 | 22,304 | 60,968 | 3,810 | ||
| Net carried interest from Clairvest Equity Partners III and IV | (3,360 | ) | 2,930 | (4,462 | ) | 4,461 |
| Distributions, interest income, dividends and fees | 13,845 | 27,250 | 42,133 | 137,678 | ||
| Total expenses, excluding income taxes | 9,395 | 6,154 | 38,608 | 28,194 | ||
| Net income and comprehensive income | 105,114 | 38,450 | 49,700 | 101,321 | ||
| Basic and fully diluted net income per share | 7.65 | 2.70 | 3.74 | 7.01 |
| Financial Position | December 31 | March 31, |
| 2025 | 2025 | |
| ($000’s, except share information and per share amounts) | $ | $ |
| Total assets | 1,406,365 | 1,429,435 |
| Total cash, cash equivalents, temporary investments and restricted cash | 287,111 | 295,728 |
| Carried interest from Clairvest Equity Partners IV | 44,055 | 48,517 |
| Corporate investments(1) | 957,448 | 942,857 |
| Total liabilities | 151,203 | 177,844 |
| Management participation from Clairvest Equity Partners IV | 35,074 | 37,718 |
| Book value(2) | 1,255,162 | 1,251,591 |
| Common shares outstanding | 13,694,131 | 14,173,631 |
| Book value per share(2) | 91.66 | 88.30 |
(1) Includes carried interest of $178,380 (March 31: $141,897) and management participation of $128,018 (March 31: $105,457) from Clairvest Equity Partners V, VI and VII, and $139,417 (March 31: $162,235) in cash, cash equivalents and temporary investments held by Clairvest’s acquisition entities.
(2) Book value is a Non-IFRS measure calculated as the value of total assets less the value of total liabilities.
Clairvest’s third quarter fiscal 2026 financial statements and MD&A are available on the SEDAR website at www.sedar.com and the Clairvest website at www.clairvest.com.
About Clairvest
Clairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $4.5 billion of capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-led businesses. Under the current management team, Clairvest has initiated investments in 69 different platform companies and generated top quartile performance over an extended period.
Contact Information
Stephanie Lo
Director of Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
stephaniel@clairvest.com
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.
FAQ**
How does the acquisition of MGM Northfield Park from MGM Resorts International MGM align with Clairvest's overall investment strategy and future growth prospects?
What regulatory approvals are required for the acquisition of Northfield Park from MGM Resorts International MGM, and how might these affect the timeline of the transaction?
Considering the sale of F12.net and Acera Insurance Services, how does Clairvest plan to leverage its partnership with MGM Resorts International MGM to drive value for its investors?
With Clairvest's recent investments and acquisitions involving MGM Resorts International MGM, what impact do you foresee on the firm's financial performance in the upcoming quarters?
**MWN-AI FAQ is based on asking OpenAI questions about Clairvest Group Inc. (TSXC: CVG:CC).
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