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Follow on Google News | Equicapita Update – Why Invest in Private Companies That are Off Limits to You?By: Equicapita Canadian Business went on to report that the Stern research found “There are three reasons why private businesses grow faster, the authors write. First, public companies have an “agency problem,” the inherent conflict of interest between executives wanting to create wealth for themselves and doing what’s best for shareholders… Greg Tooth, a partner at private equity buy-out firm Equicapita notes, "publicly traded PE investments focus on much larger transactions leaving the so-called SME or small medium enterprise PE market underserved and investors with few options for accessing the returns that can be generated in this segment – my partners and I created Equicapita to be RRSP eligible with a low minimum to allow qualified investors access to SME investments that are difficult to reach through traditional channels. Because of the compelling mismatch between the amount of business owners seeking exits in relation to the amount of dedicated SME private equity capital we believe this space could provide superior returns over the next decade while the imbalance is rectified and the demographic pressures begin to ease.” Equicapita is a Calgary-based buy-out fund focusing on acquiring Canadian private businesses that can generate strong, sustainable cash flow from their operations in niche markets. Equicapita generally seeks to acquire businesses: - at what it believes are reasonable prices - with a demonstrated history of cash flow greater than $1 million per annum; - with a durable competitive advantage; - that operate in industries that Equicapita believes have sound long-term macro prospects; - with ongoing participation of senior personnel; - with the ability to maintain the cash flow without disproportionate amounts of new capital - to be held for the long term; - where there is some potential to grow sustainable free cash flow, but where that growth is not essential to generate suitable returns.” This news release may contain certain information that is forward looking and, by its nature, such forward-looking information is subject to important risks and uncertainties. The words "anticipate," End
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