Investment Strategy

MSEP looks to deliver superior returns to its investors through targeted buyouts of lower middle market companies in Canada. Through extensive research in specific industry sectors, MSEP looks to invest in platform companies that are positioned for growth through organic and acquisition strategies.

MSEP’s investment team has invested in over 100 businesses and has accumulated over 70 years of experience in private equity and venture capital. This experience enables MSEP to approach investments creatively and offer flexible structures to business owners.

MSEP targets businesses within select industries. At present, MSEP is targeting businesses in infrastructure services, with the following characteristics:

   
Succession Planning We target companies that lack proper succession plans for transitioning owner-operators. We offer a myriad of solutions to help owner-operators transition away from their businesses, including bringing in our own CEOs from our network.
EBITDA Range A minimum EBITDA of $1.5 million, up to a maximum of $10.0 million for our platform business. No minimum EBITDA for follow on acquisitions.
Barriers to Entry A competitive barrier to entry that provides a business with an advantage over its competitors.
Opportunities for Professionalization Businesses that are profitable and operate well, but could benefit from a professionalization of the management team and improvement of operational processes.
Strong Management While we work with exiting owner-operators to transition themselves out of the day-to-day operations, we look for a strong second tier of managers that can operate the businesses and benefit from exposure to a new professional CEO.
Opportunities for Acquisitions Platform businesses with the ability to grow through acquisition.
Canadian Focused We invest across Canada for follow-on acquisitions. However, we do have a preference for Ontario based businesses for platform investments due to our direct, active involvement post-investment.
Visibility to Strong Free Cash Flow Companies need to demonstrate the ability to generate a high degree of sustainable free cash flow over time.
  • Industry Focused

    We invest in industries that we believe are well positioned for strong growth and have limited professional investors. Following extensive research, our current area of focus is in infrastructure services.

    Value Added Investing

    We are not day-to-day operators but we are active and involved with our investment portfolio companies, bringing strategic and financial value to complement existing management teams.

    Succession Focused

    We help owner-operators form and execute succession plans. Each plan is customized depending on the needs and wants of owner-operators.