The founding partners of 32 Degrees began their transition to private equity fund management starting in 1996 with the recapitalization of Colony Energy Limited. Colony was sold in 1997 generating a significant return and after which the founding partners incorporated, operated, built and exited 3 successive oil and gas companies that included Avalanche Energy Limited, Ice Energy Limited and Glacier Energy Limited. Each of the three successive operating companies generated significant returns for the founding partners and their investor base, which included Ontario Teachers Pension Plan and ARC Financial.
The successes of the operating companies led to requests from high net worth individuals for the founding partners to place and manage equity capital on their behalf in early stage oil and gas investments. In order to meet this demand, the founding partners incorporated the Overlord Fund in 2001 and began the transition to private equity fund management while continuing to manage their oil and gas business.
With the Overlord investments, the founding partners leveraged their network to source premier investment opportunities in teams pursuing the same type of strategies they had successfully executed as operators. The strategy proved successful and set-up the incorporation of 32 Degrees Capital in 2004 and the establishment of five consecutive limited partnerships where the founding partners continued to make oil and gas investments.
Today, 32 Degrees has leveraged off its operating and fund management experience to become a premier private equity franchise that has extensive and relevant industry experience, a reputation as a partner of choice, a strong network and access to high quality opportunities and a predictable and repeatable value creation model.
Source: 32 Degrees Capital
The 32 Degrees investment strategy has been tested and improved upon over many economic cycles and various business conditions. The strategy has been deployed by the founding partners as both operators and fund managers.
This combination has provided the Firm the unique perspective of seeing over “both sides of the fence” and allows the Firm to provide strategic direction to portfolio companies that is considered relevant and value-added.
The core principles of 32 Degrees’ investment strategy are as follows:
Leverage our relevant industry experience. The 32 Degrees investment team has spent their entire careers working and investing in the Canadian energy industry. Combined, the team has over 90 years of relevant industry experience and have “been there and done it”, finding millions of barrels of oil and over a trillion cubic feet of natural gas in their careers.
The team has all of the critical elements for making successful oil and gas investments including geology, engineering, financial and energy services expertise. We look to utilize this experience to anticipate market opportunities that may be created from sustainable commodity price increases, technology advancements or other market events
Maximize our strong network of industry contacts: Our long history of success first as operators and then fund managers has provided us the benefit of a strong and extensive industry contact network. We look to maximize the depth of our network by being the equity partner of choice for management teams.
We are continuously working within our network to build and strengthen relationships with industry participants and proactively seek new investment opportunities. These relationships, which are continuously being developed, are the reason we are seen in the industry as a trusted long-term partner and provide is with significant proprietary transaction opportunities.
Source: 32 Degrees Capital