Two of the Ontario Teachers’ Pension Plan’s former managing directors are opening a new private equity firm, Peloton Capital Management.
Founding managing partners Steve Faraone and Mike Murray worked together at the OTPP for more than 10 years, where they played key roles developing its direct PE program.
Peloton will have a long-term approach to middle-market buyouts in the North American market. Its sector focus will be financial services, health care and consumer markets.
“We believe there is a need in the North American PE middle-market for a long-term, sector-focused alternative,” said Murray, in a statement on Nov. 1, 2018. “While the fundraising market is competitive and there is a lot of capital chasing deals, the opportunity is significant as we are addressing a white space with our unique approach.”
Faraone and Murray are launching Peloton in partnership with Stephen Smith, chairman and chief executive officer, and co-founder of First National Financial Corporation.
Jim Leech, chancellor of Queen’s University and former CEO of the OTPP will be chairing Peloton’s advisory board.