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Home > Our Business > Private Equity
Offering individual investors and capital pools efficient access to successful small-to-medium sized, privately-held North American manufacturing firms by relying on the original thinking, disciplined long-term analysis and rigorous risk management for which Toron is known.
Why Invest in Private Equity?
The vast majority of businesses are not publicly listed, nor are they accessible to the investing public. Access to this private market has been largely restricted to major institutions that have used private equity as a means to diversify their investment risk and earn superior returns.
Investing in private firms has become more appealing with the decline of North American listed companies' contribution to Gross Domestic Product (GDP) - partially the result of a tougher regulatory environment. Over the next 10 years, most private businesses will undergo a change of ownership as aging "baby boomers" lead our economy in an unprecedented transformation. At the same time, there are many public companies that want to privatize and other companies wishing to divest viable but non-core divisions.
To give clients and other investors access to an investment class that has demonstrated its legitimacy as a desirable component of a prudently structured portfolio, Toron has established a private equity fund. The focus of the Fund (a limited partnership) is profitable small-to-medium-sized North American-based enterprises (SMEs).
Toron Private Equity Fund Criteria
With the help of oversight and guidance from an Advisory Board comprised of investors and other accomplished business professionals, the Fund team will concentrate on acquisitions of private companies that have some of the following attributes:
- Successful management
- Gross Margin stability
- Proprietary technology
- Purchasing leverage
- Excellence in product quality, health, safety and environmental issues.
Target investments will primarily be manufacturers headquartered in North America and would likely have:
- Revenues between $25 million and $100 million
- Sustainable, normalized Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) exceeding $2.5 million
- Enterprise value between $15 million and $50 million
Note: All figures are in Canadian dollars.
With careful involvement in the governance and strategic management of each holding, Toron will work with management to develop the full potential of each business. When the time is appropriate, each investment will be monetized and distributions made to the partners/investors.
The Toron Private Equity Team
Toron has established a unique team that combines its professional skills with operational expertise to identify, negotiate, monitor and nurture qualified investments. The team has experience in senior executive leadership roles in banking, financial services and manufacturing.
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Private Equity