MSEP targets businesses in the lower middle market in Canada, defined as businesses with EBITDA under $10 million. We believe that this is a large, underserved market with limited competition. Our strategy of targeting investments in specific industries allows us to understand key value drivers and risks, while developing strong relationships with owner-operators and management teams.
Most private equity investors active in Canada target larger companies with professional management in place and ignore the lower middle market. MSEP views this as an opportunity given our success at transforming owner-operated businesses into professionally run businesses.