Quantum Capital is a Toronto headquartered private equity investment firm. Working on behalf of an established group of high net worth business leaders, Quantum makes control investments in emerging and middle market companies.
Quantum invests to achieve targeted value-add or value-arbitrage returns in sole-sourced and proprietary investment opportunities. Quantum emphasizes the management of downside risk through diligence, valuation and the structuring of each transaction, playing an active role to achieve forecasted exits. In order to keep upfront valuations attractive, Quantum relies solely on its proprietary deal flow rather than participating in broad auctions and is industry agnostic.
Quantum expects to make one new investments per year, which allows for appropriate focus and support of portfolio companies to maximize investment returns. Typical transactions range in value from $25 million to over $300 million including equity contributions of $5 million to $100 million per transaction.
Sources: Quantum Capital
Quantum’s analysis of any investment opportunity is underpinned by rigorous macro and bottoms-up due diligence and an intensely analytical focus on value. Quantum believes that this disciplined, value-oriented approach will always serve investors well in the pursuit of investment opportunities, even in an environment of constrained liquidity, or flat/contracting valuation multiples over the holding period of an investment.
Unlike many private equity firms, Quantum does not target companies with a pre-conceived notion of where and how it will participate in the companies’ capital structure or at what valuation level. Quantum structures investments which are appropriate for the identified opportunity.
The firm employs leverage to achieve operational and financial objectives consistent with its investment thesis. Quantum is capable of investing in all stages of a company’s lifecycle and in any form of its financial securities. More specifically, Quantum has made investments to replenish working capital, to fund capital developments, to support research and development, to fuel corporate expansion, to facilitate mergers and acquisitions, to support recapitalizations, and to back-stop management buyouts and strategic sales.
Quantum seeks investment opportunities in middle-market, cash generative businesses that have strong defensible competitive positions with significant value creation opportunities. Targeted investments include acquisitions of divisions or assets from corporations, acquisitions or recapitalizations of privately owned or publicly traded businesses, and acquisitions of distressed businesses either through a restructuring or a bankruptcy process.
Sources: Quantum Capital