Investment

Preferring to invest early in your company’s life cycle, we invest in companies in a wide variety of industries and geographic markets, with particular emphasis on those areas where we feel we can best contribute to the growth of your business and / or equity value. Our investments range from start-ups in the “product concept” stage, where we work with domain experts looking to commercialize an idea or technology, to working with experienced executive managers looking to scale or recapitalize their existing business.

Our primary investment activities are based on the following models:

Direct Investments: Using the company’s own resources, FinanceNorth continues to build upon a diversified portfolio of private equity investments in start-up, small and mid-cap private and public companies in a broad range of industries and geographic markets.
Fund Management: FinanceNorth (and its affiliates) manage a number of private equity funds and structured products. These private equity funds are focused on specific industries or geographic markets and generally follow the same investment strategies and processes applied to the company’s direct investment activities.

Our direct investments focus exclusively on those opportunities in which we can make an equity or quasi-equity (convertible debt) investment in portfolio companies. We do not typically provide debt financing (secured or subordinated), venture loans, bridge loans or other forms of non-equity capital.

If you have an outstanding investment opportunity that falls outside our focus, we encourage you to contact us with additional transaction details and unique considerations for review.

We are continually looking for situations where we can add value in a way that our competitors don’t.

SUCCEEDING TOGETHER

FinanceNorth works closely with management to create strong financial frameworks that enable businesses to thrive while providing decisive strategic direction as they grow. Key drivers of success are typically:

  • Investing for organic growth
  • Ensuring operational efficiency
  • Securing top quality management teams
  • Driving growth through acquisition
  • Optimising capital structures

SOLUTIONS TO MEET YOUR NEEDS

Contributing our own funds as well as capital raised from our Limited Partners (LPs), including pension and retirement funds, endowments, insurance companies, mutual funds, high net worth individuals and other qualified investors, we actively seek opportunities to purchase shares in companies, at a reasonable discount to the current market value, for the purpose of long-term growth.

We currently engage in two main types of PIPEs – traditional and structured. These forms of financing are popular due to the relative efficiency in time and cost, compared to more traditional forms of financing such as secondary offerings. In a PIPE offering there are less regulatory issues with the SEC and no need for an expensive roadshow, lowering both the costs and time it takes for you to receive capital. PIPEs are great for small to medium sized public companies, that have a hard time accessing more traditional forms of equity financing.

Private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.

Typically, our preferred exit occurs between 3 – 7 years after the original investment, but we recognize that strategic opportunities and market circumstances can result in either shorter or longer hold periods.

FinanceNorth convertible debt solutions are typically among the most straight-forward and balanced in the industry. Aligning our interests closely with the needs and objectives of your company, both parties (investor and investee) can be assured that the future conversion of debt into equity (at a predetermined or set price) will be designed to maximize the company’s growth potential while minimizing negative effects on the balance sheet and P&L.

For those companies with a prior history of issuing convertible / exchangeable notes, FinanceNorth and its partners can work with you to structure interest rates lower than the traditional venture markets and provide the option of re-investing these payments back into the company’s operations.

Participating in brokered / non-brokered private placements (or non-public offerings) is an aspect of our business that has, in recent years, become more common. To better serve those companies looking to raise capital through the various U.S Securities and Exchange Commission (SEC) Regulation D (and related) exemptions, FinanceNorth has established a Limited Partnership Fund devoted exclusively to this type of investment.

The investments made by the fund primarily consist of purchases of common or preferred stock and other forms of membership interests, warrants or promissory notes (including convertible promissory notes). In some cases, we will further provide allowances for our limited partners, each of whom is an accredited investor in their own right, to directly purchase securities in an offering for their own account.

Note: In such cases where FinanceNorth, its limited partnership funds or individual limited partners make a purchase of equity under a brokered private placement, the broker/dealer or investment banker of record shall be required to waive any commissions and / or finder’s fee assessed to the company on the portion of proceeds provided by FinanceNorth or its partners.

“We invest across industries in both established and growth-oriented businesses across the globe.”

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Thomas Monroe, Chief Investment Officer

“They play a vital role in helping companies realize their growth potential. They uncover and unlock value by identifying great companies with untapped potential and enhancing their performance.”

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James Vaughn, Director, U.S Capital Markets. H.G van Baal & Co N.V

“At FinanceNorth, we believe They can create the longest-lasting value and growth if They invest deeply in our people and our clients.

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Kirsten Martin, Chief Financial Officer