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January 2, 2020

Clairvest Completes Fourth Successful Exit in Waste Management with Sale of County Waste of Virginia to GFL

Toronto, Ontario (January 2, 2020) – Clairvest Group Inc. (TSX: CVG) (“CVG”), today announced that it and Clairvest Equity Partners IV (collectively “Clairvest”), and our management shareholder partners have completed the sale of 100% of the interests in County Waste of Virginia (“County Waste” or the “Company”) to GFL Environmental Inc.

County Waste is a private regional solid waste collection company that provides residential, commercial, industrial, and C&D waste collection, disposal and recycling services in the Virginia and Pennsylvania regions. At closing, Clairvest realized a multiple of capital of 3.6x and an IRR of 30% on its US$48 million investment before considering a deferred contingent payment that is based on achieving certain corporate milestones. The contingent payment, if earned, would bring the aggregate return on Clairvest’s investment to 4.6x.

At closing, CVG’s sale proceeds were US$46 million, compared to its US$13 million investment in County Waste and a US$28 million carrying value as at September 30, 2019.

Clairvest made its initial investment in County Waste in 2013 following a prior partnership with the Company’s management at Hudson Valley Waste Inc; a successful investment Clairvest exited in 2011 that generated a 2.0x multiple of capital and an IRR of 88%.

Since 2013, County Waste successfully executed an aggressive acquisition program and completed over 60 follow-on acquisitions, growing revenue by over 400% and expanding market share across its core markets.

“For a second time, we are incredibly proud to have partnered with County Waste’s majority equity holder and CEO, Scott Earl, and to have worked alongside Jerry Cifor, a key advisor and board member to the Company. Under their leadership, County Waste grew to become an undeniable leader in the Virginia and Pennsylvania markets. It is a privilege to be an investor in a Company led by Scott, one of the most talented entrepreneurs in the waste management industry, and to work with Jerry Cifor, a trusted long time advisor to Scott and Clairvest”, said Michael Castellarin, Managing Director at Clairvest.

“Clairvest brings a unique approach to private equity and I am glad that I decided to partner with them for the second time. They are true partners, focused on supporting entrepreneurs and helping build valuable companies. Their support and focus on our Company’s needs helped us generate strong results,” said Scott Earl, CEO of County Waste of Virginia.

“Michael Castellarin, Adrian Pasricha and the team at Clairvest really understand our industry,” said Jerry Cifor. “They contributed to County Waste’s success bringing resources, analysis and complementary insights that helped us achieve tremendous growth. Most importantly, they supported us through some challenging times, and that’s the mark of a true partner” added Mr. Cifor.