The Fund makes long-term equity investments in successful Canadian private businesses.

We target a total annual rate of return greater than 20% from a combination of income and growth:

Target annual cash yield1 of 16-20%. Capital appreciation as the businesses increase in value over time.

Investment Philosophy:

Invest with proven entrepreneurs who love their business and are motivated to keep growing. Provide growth capital, liquidity and strategic advice to support their business plan. Invest a majority position for ownership control (typically 50-80%) but allow the entrepreneur to retain a significant interest and operating control. Use a prudent amount of leverage to enhance returns

Investment Criteria
Invest in businesses that:

have proven, capable management teams. have a leading/niche position in their industry. have a history of profitability and good cash-generating ability. have low capital expenditure requirements preferably. have an executable growth plan/consolidation opportunity that can result in a higher valuation over time.

Proprietary Advantage
Through its relationship with Newport Partners, the Fund has trusted relationships with successful entrepreneurs across the country and enjoys a reputation as a strong and supportive financial partner.

This results in a significant competitive advantage for the Fund:

It allows us to generate our own investment opportunities, so we don’t typically compete with other potential buyers. It means that when an investment referral comes from a trusted source, it reduces our investment risk…because we are investing with management who are known to us.

¹ Cash yield refers to the Fund’s cash-on-cash return from its holdings based on distributable cash paid to the Fund as a percentage of the invested capital.
² EBITDA: earnings before interest, tax, depreciation and amortization.