Investment Criteria

Through our many years of experience in the private equity markets, FinanceNorth has developed several important criteria on which our investment decisions are made:

Distinct, sustainable, and competitive advantage

Your company has intellectual property, substantial proprietary knowledge, strong brand franchise, and / or technology ownership that provides significant barriers to entry as well as freedom to operate within the targeted vertical sector.

A highly-skilled and committed entrepreneurial management team

You may not have a full team in place at the time of our investment, but you are market-oriented, have sound business instincts and experience that fits with your new role in the proposed venture. A desire to build an enduring, world class organization and a partnership attitude is paramount.

A clearly defined and realistic business plan

You have a clear strategy for success. You can quickly position your company in the competitive arena and your highly focused management team is able to adapt to constant change.

A market opportunity to support fast and long-term growth

Your market is large enough to sustain many players with substantial revenues and high growth rates. This may include either a large addressable market opportunity or a high growth niche market segment. The market should be international in scope and have a clear path to commercialization.

Dominant leadership in the marketplace

Your business could lead to a merger, strategic acquisition, or listing on a public exchange.

A readily perceivable, constructive exit strategy

We seek return on investment commensurate with risk. Our exit is normally through an Initial Public Offering (IPO), a strategic sale, or in the case of companies with a strong recurring cash flow not wanting to sell or list their company, a leveraged management buy-out. We prefer investment opportunities that offer a five to seven-year exit window.