The team at Fulcrum Capital Partners does not use a one-size-fits-all approach when it comes to providing capital for our portfolio companies. We believe that our financial solutions should be just as individualized and unique as the companies that we partner with and should account for the unique circumstances and context of each company.
Fulcrum Capital Partners focuses on the Canadian private equity mid-market and provides services at a national level. Our investment parameters and style have remained largely unchanged for close to two decades, providing us important insights into the needs, structures, channels and strategies of the mid-market companies we serve.
- Mid-market focus. Our focus is defined largely by the size of the investments we make. Initial investments are typically between $10 and $35 million, and would represent not less than one-third of the equity capital of a business. While we ordinarily take majority interests in our portfolio companies, we are equally comfortable taking a minority stake in the right circumstances.
- Revenues of $25 - $250 million. We invest in companies with a track record of revenue growth and profit generation. Our portfolio companies may share characteristics such as market leadership, robust industry growth or unique patented processes or technologies. Start-ups and early stage companies are better suited to venture capital or angel investor portfolios.
- Experienced management teams. We partner with capable, experienced management teams who are committed to the long-term success of their companies. Whether we’re working with seasoned entrepreneurs or industry veterans, they share our passion for excellence and a results-driven approach.
- Alignment with partners. We work hard to align all parties’ interests by taking the time to find common ground and define goals. Throughout the investment horizon, this alignment supports a decision-making framework that allows us to work with each company to help achieve its goals.
- Traditional industry sectors with an eye for unique opportunities. Companies in traditional sectors such as services, manufacturing, consumer products, distribution, food and retail represent a significant portion of the Canadian economy. Though our focus is on these enterprises, we keep an eye open for companies in other sectors that are experiencing growth and profitability.
- Three to seven-year time horizon. New products aren’t developed overnight; industries don’t grow in a day. When we invest in a company, we are shoulder-to-shoulder with management through business cycle ups and downs. Our mid-term investment horizon and patient capital approach allow time for each company to achieve its targeted growth and strategic goals.
Fulcrum's investments are tailored to the unique needs of each company and may be used for:
- Succession planning
- Financing growth and expansion
- Consolidation or acquisitions
- Management or leveraged buyouts
- Pre-IPO financing
Typical structures that we use include:
- Common equity
- Convertible debt
Fulcrum Capital Partners has crystallized value for its investors and portfolio company shareholders through public and private market sales to strategic and financial purchasers. Our goal is to realize the profitability and growth achieved throughout our investment horizon by maximizing value upon sale.
Whether it’s a sale to an industry investor or majority shareholder, or entry into the public markets through an IPO, we’re experienced in all aspects of divestiture and are well positioned to assist management teams through this process.