Clairvest Group Inc. was founded in 1987 as a Canadian-based private equity management firm that invested its own capital in entrepreneurial corporations.
Clairvest combines capital with the considerable experience of its board, consisting of entrepreneurs who have themselves successfully built many companies. Their expertise and experience is brought to bear on every investment opportunity.
As a publicly listed company (TSX: CVG), Clairvest continues to manage its own capital by co-investing alongside the Clairvest Equity Partners funds in private equity investment opportunities originated by its team. Clairvest is also a participant – and a leading investor – in the general partner of Wellington Financial, which provides venture debt and bridge financing to Canadian corporations.
Under the current management team, Clairvest has initiated investments in 42 different companies, accounting for invested capital of over $1 billion.
PUTTING OUR OWN CAPITAL AT RISK
From its inception, Clairvest Group Inc. has invested its own capital in every investment. Clairvest’s latest capital pool totals $600 million, of which $180 million has been committed by Clairvest Group Inc. Each member of the investment team has invested a significant amount of capital in Clairvest Group Inc., and we approach each investment as owners and shareholders.
PARTNERING WITH PROVEN MANAGEMENT
Clairvest partners with – and invests alongside – entrepreneurial managers who have demonstrated leadership ability and have strategic vision for the future of the company.
ALIGNMENT OF INTERESTS
Underlying each of our investments is the concept of alignment of interests: as equity partners, we succeed when our entrepreneur partners and portfolio companies succeed. In each of our portfolio companies, its managers are shareholders and have significant personal capital at risk. In addition, Clairvest encourages the implementation of equity-linked long-term incentive packages to further align the interests of management with those of shareholders.
Through our in-depth industry research – and by leveraging our relationships and those of our board – we actively seek industries and companies that meet our criteria for value creation. We invest in industries with scope for consolidation or strong growth and in companies with unique strategic advantages within their industry. We target strong, profitable companies with proven and sustainable business models in industries with high margins, a good return on capital employed and many customers.
PROVIDING PATIENT CAPITAL
Clairvest invests to create long-term value. We realize that it takes time to execute a successful growth strategy and that the road to success is not always smooth.
Clairvest evaluates investment opportunities using the following criteria:
SIZE OF COMPANY
Clairvest looks for companies with earnings before interest, taxes, depreciation and amortization (EBITDA) between $5 million and $40 million.
SIZE OF INVESTMENT
We look to invest between $15 million and $100 million in equity capital in each portfolio company. Where required, we have access to additional equity capital through our extensive relationships.
We look to acquire ownership positions ranging from 20% to 80%. We do not require majority or controlling ownership positions and are equally comfortable in a minority position where the management is in a controlling position.
Clairvest invests in a wide array of industries. We expend considerable time and energy in identifying attractive industries, understanding their dynamics and developing a value proposition. We particularly favour industries that exhibit recurring revenue, that are fragmented, with economies of scale and that have strong underlying growth trends.
Clairvest targets companies with a strong track record of growth or which offer the potential for significant future growth, whether organic or through add-on acquisitions. We favour companies with compelling internal returns on capital, companies that have a distributed customer base and those that demonstrate a sustainable competitive advantage.
Above all, we look for experienced managers with a proven track record of success who have invested their personal capital in the company. We will partner when we determine that we share core values and have a common vision for creating wealth.