Vancouver, British Columbia— Pender Growth Fund Inc. has announced a remarkable financial performance for the year ended December 31, 2024. It is marked by significant net income growth and strategic acquisitions that position the company for future success.
Pender Growth Fund reported a net income of $55,473,592 for 2024, a substantial increase from $1,029,528 in the previous year. This impressive growth is attributed to positive investment performance throughout the year.
The net income per Class C common share rose to $7.61, up from $0.14 in 2023. The company’s total shareholders’ equity increased by $53,195,329, reaching $123,081,057 as of December 31, 2024.
This increase reflects the net income from investments, offset by share repurchases under the Normal Course Issuer Bid (NCIB).
As of December 31, 2024, shareholders’ equity stood at $17.25 per share compared to $9.48 at the end of 2023. The number of outstanding shares decreased by 235,000 to 7,133,229 due to repurchases under the NCIB.
The investment portfolio was composed of 64.7% public companies and 35.3% private companies, with net assets distributed as 56.9% publicly listed companies, 31.1% private unlisted companies, and 12.0% cash and other assets net of liabilities.
The Management Expense Ratio (MER) before performance fees was 2.65% for 2024, an increase from 2.31% in 2023.
Strategic Acquisitions
In October 2024, Pender Growth Fund completed the acquisition of four technology companies from Pluribus Technologies Corp. through its subsidiary, Pender Software Holdings Ltd. (PSH).
The acquisition included POWR Inc., Rowanwood Professional Services Ltd., Cranham Haig Ltd. dba CHL Software, and Assured Software Ltd.
All four companies are cash flow positive and will continue to be led by their existing management teams. This strategic move aims to enhance operational excellence with support from Pender and Acorn Partners Inc.
The total cash consideration for the transaction was C$17 million, subject to adjustments. Pender and Acron were advised by prominent legal and financial firms, including Fasken Martineau DuMoulin LLP, Loeb & Loeb LLP, and BDO Canada LLP.
Merger with Acorn Partners
In early 2025, Pender Software Holdings merged with Acorn Partner Inc., integrating Acorn’s team into PSH. This merger combines the acquisition expertise of both parties, enhancing Pender Software’s ability to scale operations and execute strategies for acquisitions.
The merged entity is focused on expanding its portfolio of software companies, aiming to become a leading capital partner for exceptional software businesses.
Ampere Chan, founder and CEO of Acorn, now leads Pender Software Holdings. The company is actively seeking opportunities to acquire high-quality software companies in Canada, the United States and the United Kingdom.
Although as Pender continues to expand its investment portfolio, it remains a key player in the Canadian investment landscape.
