Victoria Park Capital Inc.
Investment Criteria

Investment Criteria

Victoria Park Capital is able to provide capital for the full spectrum of investment needs, including early stage, start-up, expansion, management buyout, restructuring, succession and turnaround operations.

Focus on Saskatchewan

Our mandate focuses on commercial investments in companies that will increase economic activity in Saskatchewan.

Investment Size

We target opportunities requiring $3 million or more of total anticipated need.

Portfolio Diversification

Due to the geographic restriction of VPC's mandate from its client, it achieves portfolio diversification through a variety of financial instruments such as equity and debt investments entered into on its own or with partnership syndicates such as: equity (common and preferred shares); near equity (convertible instruments); and mezzanine debt (subordinated debt, etc.). In addition, it achieves diversification by supporting businesses in all industry sectors and at all stages of investment.

Ownership

VPC generally does not enter into direct investments that provide its client with an ownership position of greater than 40%.

Return Objective

When considering new investments, we ensure that our expected return objectives are consistent with industry expectations for a similar level of risk. Our target returns for individual investments will depend on the risk associated with the specific deal, taking into account factors such as the stage of investment, the sector, and the financial instrument employed.

Board Representation

We believe in active participation with investee management teams, including board representation, to ensure that all strategic decisions are made in the best interests of growing the investee company, thereby maximizing the potential for returns.

Alignment of Interests

VPC is majority-owned by employee shareholders, which ensures that our business interests are aligned with those of our client and with investee companies at all levels and stages of the business relationship.

Time Horizon

We expect that our investment relationships will typically last five to seven years, although this may vary according to individual agreements and market conditions. VPC works with investee management teams to build shareholder value over the ownership time horizon, while still being prepared to react to market opportunities and achieve value at the point of exit or liquidation of our client's interests.

Target Sectors

While we consider investment opportunities in all industry sectors, we have a particular focus on those that support Saskatchewan's overall resource strengths and economic development strategies. These target sectors include: agri-value and agri-related; advanced technology; information technology; environmental technology commercialization; forestry; energy; and resource extraction.

Due Diligence

VPC conducts rigorous due diligence on investment opportunities to ensure that it is using the utmost care with its clients' interests.

To assist companies in preparing documents in support of their search for venture capital and private equity, VPC offers a list of due diligence considerations:


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