PFM Capital

About

PFM Capital is an employee-owned investment management firm, focused on private equity investment in Western Canada and Saskatchewan in particular.
Founded in 1989 as a corporate finance company, PFM has been managing private equity and venture capital funds since 1993.

PFM currently manages nine private equity funds: SaskWorks Venture Fund Inc. – Diversified Share Class, SaskWorks Venture Fund Inc. – Resources Share Class, Apex Investment Fund, Apex II Investment Fund, Apex II Private Equity Fund, Apex III Investment Fund, Prairie Ventures Fund, TopSoil Farm Land Management Inc., and TopSoil Farm Land Management (II) Inc.

Backed by an experienced management team and rigorous due diligence and monitoring standards, PFM has a strong track record of steady high-quality deal flow and investment management, providing superior returns to the firm’s investors. As at March 31, 2019, PFM has over $776 million in assets under management.

As an industry leader in the province and Western Canada, PFM focuses on investments in small- and medium-sized private companies and typically targets transactions with the following characteristics:

• Deal size: $1 million-$20 million (Potential for larger transactions through syndication)
• Sector Focus: 
o Agricultural Value-Added
o Oil & Gas 
o Manufacturing
o Real Estate
• Structure:
o Subordinate Debt
o Convertible Debentures / Preferred Shares
o Common Equity
o Management / Employee Buyouts across various sectors


Source: PFM Capital

Strategy

Investment Objectives

PFM Capital’s funds invest in small- and medium-sized  businesses, with the objective of achieving long-term capital appreciation, thus  contributing to the province’s economic growth and prosperity.  Each fund under management has its own investment mandate, which can be found under “Funds,” and in some cases may have geographical restrictions.
Key elements of the portfolios’ success include a balance between risk and return.  In general, most of the funds’ investments fit into one of the following stages of development:

Expansion Financing:
• to expand sales or production capacity, or to launch a new product or service;

Management/Employee Buyouts:
• to acquire control of a business that has significant expansion potential that can be realized by adding new management and capital;

Restructuring or Turnarounds:
• to facilitate changes in capital structure, management, staffing, operations or marketing strategies.

Investment Criteria

Our investment criteria vary between our funds and by the type of potential investment.  However, in all prospective investments, we look for the following key attributes:

• Strong management team – Experience, integrity, and commitment
• Robust market potential – Growth prospects and product demand 
• Sustainable competitive advantage – Strong brand, solid market position, and cost advantages 
• Solid industry fundamentals – Maturity, growth rate, and return on capital 
• Realistic exit strategy – Sale to strategic buyer, share re-purchase, initial public offering, or restructuring $1 million minimum deal

PFM Capital's funds invest in companies in diverse industries throughout Western Canada, but focus on Saskatchewan. PFM is continually seeking potential investments, but to be selected, investments undergo a rigorous due diligence process.

Before contacting PFM:
• Do you have a written business plan?
• Do you have financial statements from your past three years of business? 
• Do you have financial projections for the next three years?

Source: PFM Capital