EdgeStone Capital Energy Fund, L.P. ("Energy Fund") is a private equity fund that invests in equity and equity-related securities of established small and mid-sized public and private energy companies based in Western Canada.

EdgeStone Capital Energy Fund L.P.
Currently fundraising
Target size of $50 to $100 million
Total funds raised to date of approximately $28 million
Target investment amount of $5 to $10 million per transaction
Targeted IRR of 20% to 25% per year

Funds management team
Samuel L. Duboc – Managing Partner
Victor Roskey – Partner
Brent Foster, P.Eng – Engineering Consultant

We seek to generate superior risk-adjusted returns by:

• Investing in equity and equity-related securities of established small to mid-sized public and private companies based in Western Canada active in the exploration and production and service sectors of the energy industry;
  
• Leveraging the respective strengths and relationships of EdgeStone, GMP and the Fund’s external advisory board to identify and capitalize on opportunities;
  
• Targeting companies with quality projects and assets that, following the investment of our capital, offer the potential to significantly and positively impact the value of the company;
  
• Backing committed, experienced, capable and ethical management teams whose interests are directly aligned with those of the Fund; and
  
• Investing in a disciplined and risk mitigating manner and by actively managing investment risks and industry cycles.

In investing the Fund’s capital, we strive to be as flexible and creative as the circumstances require so that we may meet the needs and objectives of the company in which we are investing. Generally, we look for investment opportunities with the following attributes:

• The opportunity to invest $5 to $10 million in a single transaction in common equity or equity-related securities, such as preferred shares or convertible debt;


• A business plan and a range of exit strategies that support an investment horizon of three to five years;


• A use for our capital that will serve as a catalyst in the company’s development and will positively impact its value, such as the financing of a complementary acquisition or the acceleration of a development drilling program;


• The potential to generate gross average annual returns on our invested capital of 20% to 25%;


• The ability to have an observer attend at all board meetings of portfolio companies in which we invest; and


• Management incentives and an ownership structure that are aligned with the interests of the Fund and geared to increasing shareholder value.

Prior to making an investment, we will conduct extensive due diligence to thoroughly analyze and evaluate the opportunity. The due diligence process is intended to provide us with a well-informed and comprehensive view of the merits and risks of the investment and serves to highlight any unidentified issues that may need to be addressed with the company before any capital is invested.

Once an investment is made, we will work to establish a close relationship with management and other stakeholders so as to be positioned to assist in addressing challenges and capitalizing on opportunities as they might arise.

Robert G. Peters – President of Black Diamond Land & Cattle Co., a private company with interests in real estate development, ranching and energy investments. Previously, Chairman of Peters & Co. Limited, an independent investment firm specializing in investments in the Canadian oil and natural gas and oilfield services industries.

A. Jeffrey Tonken – Founder, President and Chief Executive Officer of Birchcliff Energy Ltd., a junior oil and gas company listed on The Toronto Stock Exchange. Previously, President and Chief Executive Officer of Stampeder Exploration Ltd., Big Bear Exploration Ltd., and Case Resources Inc.

Richard Lewanski – President of Clash Capital Ltd., a private investment company with interests in real estate and energy investments. Previously, President and Chief Executive Officer of Amber Energy Ltd. and Atlas Energy Ltd.