The Equity Power Fund’s investment strategy is to focus on strong growing companies, with a proven business model well positioned to benefit from the growing demand from customers for cost/quality competitive products and services in light of the increasing profitability pressure.
The Equity Power Fund’s investment strategy is based on the defined “Growth Drivers”:
- Identifying Investment Opportunities: The success of the Equity Power Fund depends in large part on its ability to identify attractive investment opportunities and to invest in the most appropriate of them. The time and effort required to complete the screening and due diligence process are The Management has a network of contacts with venture capital companies, investment dealers, investment managers, financial intermediaries, merger and acquisition specialists and professional firms. The Management actively seeks to develop attractive investment opportunities. As well, the Management is the recipient of many unsolicited proposals from businesses seeking financing. The Management co-operates with other investors in identifying, structuring and negotiating investments. The Management’s normal approach is to conduct its own due diligence and research with respect to the individual issuers in which it invests the Equity Power Fund’s money and each potential investment in an issuer is evaluated according to criteria considered by the Management to be appropriate for that potential investment. When the Management considers it advisable, it may engage other professionals with particular expertise for assistance and advice with respect to its review of particular investment opportunities.
- Size of Investments: The size of each investment depends on the financial requirements of the business in which the investment is made and is subject to regulatory limits. The Fund may acquire an ownership position in a company or be part of a specific transaction with no minimum or maximum in percentage or amount. The investment may form part of a larger investment made with other investors.
- Investment Criteria: The Equity Power Fund’s Policy will include a pre-defined “Investment Criteria” before the completion of any transactions. The Investment Criteria for any proposed investment by The Equity Power Fund is defined as follows:
- Transactions that can provide the Portfolio with both capital appreciation and high income growth potential;
- High quality managerial & operational experience & expertise of investment and partner companies;
- Strong and well defined pay-out structure of investments and transactions;
- Low cost structure with growing market share or specific differentiating factors;
- Goods, Products and services that do not become obsolete;
- Innovative users of technology;
- High returns on capital;
- High or growing market share and quality leader;
- Strong intrinsic demand and growth potential;
- Clearly defined exit strategy for each investment;
- Clearly defined and manageable risks; and
- Strong expertise, track record and business history of investee companies.
The Equity Power Fund’s Investment Policy may be amended depending on the evolution of the micro and macro-economic environment, always in the best interest of the Investors.