Equicapita is built around the premise that private equity investments in small, medium enterprises (“SMEs”) are an excellent long-term investment and that a large generational shift is taking place that will provide abundant deal-flow and competitive pricing.
Equicapita's model is to acquire established, private small and medium sized enterprises (“SMEs”) located primarily in Western Canada. Equicapita investment drivers are to acquire operating companies at attractive valuations, with a history of generating sustainable cash flow and proven management teams. Equicapita believes that there is a:
- generational opportunity to acquire ‘baby boomer’ SMEs; an
- funding gap in the $5 million to $50 million enterprise value range.
The retirement of baby boomer business owners has been described as triggering one of the largest transfers of corporate assets on record in Canada. This creates an environment with an abundance of opportunities to acquire SMEs with long-term operating histories at attractive cash flow multiples. Equicapita provides investors with access to this alternative asset class via an efficient RRSP eligible structure.
Equicapita is built around a value investing investment framework informed by the Austrian School of Economics - value driven at the investment selection level with analysis based on the Austrian school of economics at the macro level to provide insight into trends. We match sound macro-economic thinking with sound operational strategies to generate long-term returns by finding investments with:
- strong macro drivers
- favorable supply/demand situation
- margin of safety – low asset prices or the ability to acquire cash flow cheaply