TRUE NORTH. investors

Transcription

1 TRUE NORTH investors

2 True North Investors is a private equity firm dedicated to investing in closely held lower middle market companies located in Canada and the United States. True North focuses on control equity investing in management-led buyouts with the objective of creating long-term shareholder value. Long-term Shareholder Value 2

3 True North principals have a demonstrable history of identifying companies which possess attractive growth potential, and of conducting rigorous strategic, operational, and financial analysis to support sound investment judgment. We invest in companies that are at an inflection point, where new ownership, the introduction of capital, valueoriented stewardship, and sophisticated management practices can enable a business to reach its full potential. True North works in partnership with management to transform small businesses into world-class organizations. Since 1990, the principals of True North have completed fifteen private equity investments that aggregate to over $85 million invested and have resulted in a realized gross return of 3.8 times the invested capital. Based in Toronto, the financial capital of Canada, True North makes equity investments on behalf of a leading Canadian financial institution. Small Large Investment Capital Companies 3

4 Investment Philosophy True North strives to earn superior risk-adjusted returns for its investors and management partners by investing in proven businesses that have the potential to become world-class organizations. Working closely with management both pre- and post-acquisition, True North builds a partnership with management based on trust and mutual respect. While we do not get involved in the day-to-day operations of our companies, True North assists management teams in developing and executing strategies that promote growth, exploit strengths, and shore up weaknesses, with the ultimate objective of creating long-term shareholder value. True North mitigates investment risk by investing in sound companies, adhering to appropriate valuation parameters, conducting exhaustive due diligence, using leverage prudently, and building bridges between operating company managers and prominent business leaders and third party advisors. We believe that the success of a private equity investment hinges on the shared goals of investors and company managers. Both the principals of True North and the company s senior managers make a significant personal investment in each operating company. 4

5 Building World-Class Organizations Investment Criteria Equity Investments $5 million - $25 million Target Company Characteristics Company Size Enterprise Value $25 million - $75 million Operating Profit $3 million - $10 million Sectors of Interest Consumer Products and Services Industrial Products and Services Geography Canada and the United States, with emphasis on the Great Lakes Region Management Invest in partnership with high caliber managers Other Established businesses, which provide a product or a service that satisfies a consistent or growing demand. Leadership in product category, distribution channel, cost position, or technology Innovative and proven business strategy Will not consider turnarounds 5

6 Team Ed Rieckelman President Ed has eighteen years of buyout experience, much of it in the lower middle market. He has led or been an integral team member on fifteen private equity investments aggregating over $85 million. To date, the realized investments have returned 3.8 times the capital invested. Ed has built strong relationships with both conventional and non-conventional deal sources throughout North America and has strong relationships with middle market lenders. Prior to founding True North, he was a Partner with ONCAP Management Partners, Onex Corporation s dedicated middle market investment affiliate. Prior to ONCAP, Ed was a Partner with Goldner Hawn Johnson & Morrison Incorporated, a Minneapolisbased $200 million private equity fund; he began his career at First Chicago Corporation s Merchant Bank. He is a graduate of Boston College and holds an MBA from Carnegie Mellon University. Advisory Board We have invited four prominent and respected businesspeople to serve as advisors to True North Investors and its operating companies. Each individual, while multi-talented, has a demonstrated strength in a particular industry or discipline that matches True North s activities. These individuals have agreed to play an active board role with our portfolio companies and to assist in our due diligence efforts. Partnership with Management 6

7 Joe Messner President, Bushnell Outdoor Products Joe led the 1999 buyout of Bushnell, and through new product introductions and strategic acquisitions, has transformed the company into a worldwide leader in both sports optics and premium eyewear. Under Joe s leadership, operating profits have increased four fold. Prior to Bushnell, Joe was President and CEO of First Alert. Doug Porter Deputy Chief Economist, BMO Capital Markets Doug s responsibilities include formulating BMO s macroeconomic, interest rate and currency projections. He is regarded as one of Canada s premier economists and is a regular commentator on economic and financial trends to the media. Lorrie Owen-Turner General Manager, New Balance Canada Lorrie leads New Balance Canada, a premium footwear and apparel company. Prior to New Balance, Lorrie had a 15 year career with Labatt s most recently as the vice president of sales of Oland Specialty Beer Company, Labatt s premium beer division. David Rogers President, Caledon Partners David is a distinguished authority on private equity markets, advising Canadian institutional investors and governments on various private equity issues. Prior to Caledon, David was the team leader of OMERS Capital Partners, the private equity arm of a $46 billion pension fund. 7

8 TRUE NORTH investors 47 Ryland Terrace, Oakville, Ontario L6J 7R1 Canada Winter 2008