KV Capital Announces Strategic Partnership with Nelson Lumber Company Ltd. to Expand Building Products Sector

KV Capital, a Canadian alternative investment manager, has announced a strategic partnership with Nelson Lumber Company Ltd., a leading Alberta-based supplier of building supplies, and Nelson Homes, a manufacturer of ready-to-move and prefabricated homes. This partnership marks a significant expansion of KV Capital’s private equity division into the building products sector, aiming to support real estate development in the markets they operate in.

The collaboration with Nelson Lumber is a strategic move to enhance capabilities and market reach in the building products sector. By working alongside ATB Private Equity, BDC Capital, and the current shareholders of Nelson Lumber, KV Capital aims to propel Nelson Lumber’s growth ambitions while respecting and building on the company’s 75-year legacy and brand.

Jason Pehl, President of Nelson Lumber, expressed excitement about the partnership, stating, “We’re eager to partner with firms that share our vision for the future in 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.”

Aleem Virani, CEO of KV Capital, highlighted Nelson Lumber’s reputation, culture, and track record as key factors in making it an ideal investment for KV Private Equity Fund III. The partnership is expected to drive success for both companies, enabling them to better serve customers and investors.

Terry Freeman, Head of Investments at ATB Private Equity, expressed enthusiasm about the partnership, stating, “ATB Private Equity is thrilled to partner with KV Capital, BDC Capital, and the current shareholders of Nelson Lumber, united in our vision to expand the Nelson Lumber platform.”

Tabreez Lila, Managing Director, Growth and Transition Capital, Prairies at BDC Capital, emphasized Nelson Lumber’s position for growth in Alberta’s housing industry, citing the company’s commitment to quality and trust as key drivers of success.

This strategic partnership marks the launch of KV Capital’s building products private equity strategy, demonstrating the company’s commitment to identifying and nurturing high-growth companies in the sector. KV Capital welcomes inquiries from prospective investors and companies, as the fund remains open for investment and deployment opportunities.

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, Nelson Lumber is expanding its horizons with the addition of KV Capital, offering a comprehensive range of building materials and premanufactured home solutions.

KV Capital, founded in 2006 and based in Edmonton, Alberta, is a Canadian alternative investment manager with approximately $500 million in assets under management. The company’s funds cover a diverse range of asset classes, including private operating businesses, real estate, and mortgages.

ATB Private Equity, established in 2016, is dedicated to supporting Alberta-based companies through growth equity and transition capital, with $100 million of committed capital across two funds. BDC Capital, as Canada’s bank for entrepreneurs, offers a wide range of risk capital solutions to help grow the country’s most innovative firms.

The strategic partnership between KV Capital and Nelson Lumber signifies a significant step in enhancing capabilities and market reach in the building products sector, setting the stage for continued growth and success in the industry.