The Partnership
About Us
The Tier One Capital Limited Partnership holds a diverse array of high growth Canadian companies. The Limited Partnership typically focuses on investments in technology, finance and industry, or healthcare and health care technology companies. However, the Limited Partnership has a broad mandate that allows the management team to pursue other opportunities with similar fundamentals. The Limited Partnership is most interested in rapidly growing, emerging markets, and in businesses that can achieve dominance in their niches by leveraging intellectual property or other competitive advantages. These companies are selected based on several criteria, including: the industry’s economics, managerial capability, competitiveness, growth potential and past performance.
Investment Strategy
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The Tier One Capital Limited Partnership will primarily invest in the senior debt, convertible debt and preferred shares of businesses with the greatest potential for long term growth. The Limited Partnership may also invest in equity and other equity-related securities. The Limited Partnership’s primary focus will be on companies with recurring revenue streams in the technology, healthcare (and healthcare technology) and financial services industry. The Limited Partnership will initially focus its investments on companies in the expansion phase of development in need of capital, or in the previously issued securities of Portfolio Companies. The investment size is expected to range between $1 to $5 million per investment. It is important to note, however that the Limited Partnership is not restricted in terms of the size, security type or sector distribution of its investments.
The characteristics of our portfolio companies include:
- A capable management team with a clear market orientation.
- A feasible business strategy which fully describes the business and its growth potential in terms of revenues, profits, assets, and cash flow.
- Evidence of a market for the business, technology, product or services.
- A commitment to innovation, rapid market expansion, high-growth, high gross margins, and capability of obtaining a dominant market position.
- The ability to leverage government grants or tax programs to offset research and development and other growth investments.
- The opportunity for at least one representative of the General Partner to be elected as a member of the board of directors or to participate as an observer at meetings of the board of directors of the investee company within the equity portfolio.
- Anticipated holding periods for investments will vary from short-term (being 1-3 years) to long-term (being 3-5 years) depending on the nature of investments although the Limited Partnership may hold investments for a shorter or longer time period. Debt investments held by the Limited Partnership will tend to have durations of 1-3 years while equity investments will have longer-term anticipated investment horizons.
- A reasonable expectation that the Limited Partnership will be able to exit from its investment in five to eight years or sooner since most of the investments will initially be in securities for which no active market exists.
How we track potential investees
We track a company’s performance, often for years, monitoring it as its market share grows and analyzing its potential for expansion, before the company may prove it has the characteristics necessary to enter Tier One Capital’s holdings.
Operations
In acquiring its holdings, Tier One Capital works with each company, the company’s founders and other security holders to determine the most efficient capitalization structure, board structure, incentive stock option arrangements, management compensation, as well as other ancillary or case-specific details. The Limited Partnership is actively involved with its holding companies, with either a representative siting on the companies’ board of directors or through other mechanisms, such as regular reports, updates on strategic plans, and comparisons to industry metrics. The Limited Partnership, through the General Partner, will provide advice to holding companies on various business decisions, such as financing or acquisition opportunities and market developments.
Investors
Tier One Capital Limited Partnership Trading Price
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Resources
Contact Us
If you have any questions or concerns, please do not hesitate to contact us.
The Tier One Capital Limited Partnership is committed to providing Limited Partners with access to yield and the opportunity for capital appreciation. The Limited Partnership will invest primarily in the debt securities of eligible businesses which have the greatest potential for long-term growth. The Limited Partnership focuses on providing growing Canadian companies with the capital needed to execute their growth strategies and acquisition plans. The Limited Partnership’s strategy is centred on investing in opportunities that offer multiple avenues for repayment on principal, be it from operational cash flow, cash flow from tax credits or government grants or a sale of the business or other liquidity event. Tier One Capital’s structure and strategy afford accredited investor returns at a retail investor risk level.
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