INVESTMENT PRINCIPLES

PUTTING OUR OWN CAPITAL AT RISK
From its inception, Clairvest Group Inc. has invested its own capital in every investment. Clairvest’s latest capital pool totals $600 million, of which $180 million has been committed by Clairvest Group Inc. Each member of the investment team has invested a significant amount of capital in Clairvest Group Inc., and we approach each investment as owners and shareholders.

PARTNERING WITH PROVEN MANAGEMENT
Clairvest partners with – and invests alongside – entrepreneurial managers who have demonstrated leadership ability and have strategic vision for the future of the company.

ALIGNMENT OF INTERESTS
Underlying each of our investments is the concept of alignment of interests: as equity partners, we succeed when our entrepreneur partners and portfolio companies succeed. In each of our portfolio companies, its managers are shareholders and have significant personal capital at risk. In addition, Clairvest encourages the implementation of equity-linked long-term incentive packages to further align the interests of management with those of shareholders.

LEVERAGING KNOWLEDGE
Through our in-depth industry research – and by leveraging our relationships and those of our board – we actively seek industries and companies that meet our criteria for value creation. We invest in industries with scope for consolidation or strong growth and in companies with unique strategic advantages within their industry. We target strong, profitable companies with proven and sustainable business models in industries with high margins, a good return on capital employed and many customers.

PROVIDING PATIENT CAPITAL
Clairvest invests to create long-term value. We realize that it takes time to execute a successful growth strategy and that the road to success is not always smooth.

CLAIRVEST GROUP INC.

INVESTMENT CRITERIA

Clairvest evaluates investment opportunities using the following criteria:

SIZE OF COMPANY
Clairvest looks for companies with earnings before interest, taxes, depreciation and amortization (EBITDA) between $5 million and $50 million.

SIZE OF INVESTMENT
We look to invest between $15 million and $100 million in equity capital in each portfolio company. Where required, we have access to additional equity capital through our extensive relationships.

OWNERSHIP
We look to acquire ownership positions ranging from 20% to 80%. We do not require majority or controlling ownership positions and are equally comfortable in a minority position where the management is in a controlling position.

INDUSTRY FOCUS
Clairvest invests in a wide array of industries. We expend considerable time and energy in identifying attractive industries, understanding their dynamics and developing a value proposition. We particularly favour industries that exhibit recurring revenue, that are fragmented, with economies of scale and that have strong underlying growth trends.

COMPANY CRITERIA
Clairvest targets companies with a strong track record of growth or which offer the potential for significant future growth, whether organic or through add-on acquisitions. We favour companies with compelling internal returns on capital, companies that have a distributed customer base and those that demonstrate a sustainable competitive advantage.

MANAGEMENT
Above all, we look for experienced managers with a proven track record of success  who have invested their personal capital in the company. We will partner when we determine that we share core values and have a common vision for creating wealth.

CLAIRVEST EQUITY PARTNERS

ADDING VALUE

We work with management of our portfolio companies to help create long term financial returns for all shareholders. With the common goal of creating significant equity value, our team of investment professionals supports management by:

  • Identifying and setting long-term goals and objectives
  • Assisting with strategic and financial initiatives
  • Introducing portfolio companies to potential customers or new business relationships
  • Introducing new executives for board positions
  • Providing negotiation, due diligence, transaction structuring and integration support for acquisitions
  • Providing assistance with re-financings or restructurings of credit facilities
  • Introducing portfolio companies to lenders, consultants and investment bankers
  • Identifying exit opportunities for all shareholders, including a public market share offering, a strategic sale or sale to a financial buyer

 

Clairvest has helped identify and facilitate more than 260 acquisitions for its portfolio companies. We have helped raise more than $6.6 billion in debt and $580 million in third-party equity. Through our board and our industry relationships, we provide management with access to the advice and counsel of seasoned entrepreneurs and executives, who often participate on portfolio company boards.

WELLINGTON FINANCIAL

INDUSTRY FOCUS

Clairvest selects industries or segments within industries (“Domains”) where the investment team believes there is an opportunity to create substantial equity value. The investment team devotes from 6 to 24 months to evaluate an industry, and during this time identifies the leading companies and executives, studies the industry dynamics and analyzes the key value drivers. This research to date has been focused primarily on industries which meet the key criteria of: recurring revenue, high EBITDA margins and RONAs, top line growth, highly fragmented, and have cost-based economies of scale with widely distributed customer bases. Ultimately, when an investment strategy is formulated, Clairvest seeks an industry partner within the Domain who shares Clairvest’s value creation vision. Through 21 years of investing experience, the Clairvest leadership team has focused on several industries, including: business services, consumer services, rental services, waste management and local market gaming.

INDUSTRIES OF FOCUS:

  • Aerospace
  • Automotive Aftermarket
  • Collision Repair
  • Co-Packing
  • Defense
  • Education
  • Environmental Services
  • Equipment Rental
  • Gaming
  • Industrial Services
  • IT Services
  • Logistics and Transportation
  • Media
  • Non Destructive Testing
  • Renewable Energy
  • Oilfield Services
  • Specialty Aviation
  • Warranty

CLAIRVEST EQUITY PARTNERS

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