EdgeStone Capital Equity Fund I, II & III L.P. ("Equity Funds") are private equity funds with the primary objective of investing in equity and equity-related securities of middle-market North American companies, with an emphasis on strong market position and competitive advantage in the Canadian marketplace.

EdgeStone Capital Equity Fund III, L.P.
Committed capital of C$800 million
Target investment amount of $25–$60+ million
Targeted IRR of 25%+
Portfolio companies

EdgeStone Capital Equity Fund II, L.P.
Total committed capital in excess of $360 million
Closed for new investments
Targeted IRR of 25%+
Portfolio companies

EdgeStone Capital Equity Fund, L.P.
Total committed capital in excess of $180 million
Closed for new investments
Portfolio companies

Funds management team
Samuel L. Duboc – Managing Partner
Gilbert S. Palter – Managing Partner
Sandra Bosela – Partner
Sandra Cowan – Partner
Martin Longchamps – Partner
Stephen Marshall – Partner
Daniel Klass – Principal
Andrew Walton – Principal
Jeffrey Brown – Vice President
Sarah Goel – Vice President
Andre Mousseau – Vice President
Feizal Satchu – Vice President
Philippe Martin – Associate
Katherine Rivington – Associate
Felix-Etienne Lebel – Junior Associate

Our later stage Equity Funds seek to generate superior investment returns by investing:

• In equity and equity-related securities of middle- and later-stage private and public companies
  
• In a broad range of industries
  
• To facilitate growth and expansion, acquisitions, consolidations and restructurings
  
• To support management buyouts, going private transactions and recapitalizations
  
• With an investment horizon of three to seven years
• Targeting an IRR of 25%+
  

When we assess a company as an investment opportunity, we consider the fundamental prospects of the potential investment, taking into account:

Quality and commitment of management
We believe that partnering with motivated and highly experienced management teams is important to realizing superior investment returns, and to helping investee companies meet their business objectives. We invest in management teams that have:

• High standards of integrity, capability and commitment
  
• An appropriate mix of business skills
  
• A substantial stake in their company, with remuneration linked to investment returns


• Passion for their businesses

Attractive industry fundamentals
An industry's fundamental attractiveness is one of the dominant factors influencing investment returns. We consider the following issues before making an investment:

• Expected growth rate and maturity
  
• Sensitivity to economic cycles
  
• Intensity of and potential growth in competition
  
• Profitability and return on capital
  
• Availability of substitutes or new technologies that could alter the industry dynamics
  
• Relative power of suppliers and customers
  
• Customer dependancies or concentration

Sustainable competitive advantage
We invest in companies that are leaders in their industries or that have strong positions in industry niches. We look for companies that have:

• A strong brand and market share
  
• Superior levels of quality and service
  
• Technology leadership

We also invest in companies that are positioned as the low-cost provider in the industry and/or demonstrate top performance in a fragmented industry.

Growth potential structure for superior risk-adjusted returns
We attempt to structure transactions in such a way as to enhance risk-adjusted rates of return. This includes the utilization of senior securities, such as convertible securities, that provide downside protection while preserving upside potential.

Defined exit strategy
The targeted holding period for an Equity Fund investment is three to seven years. We structure investments so that we have at least one exit strategy that the Equity Fund can influence.
Preferred exit options include:

• Sale to a strategic or financial buyer
  
• Share re-purchase by the company
  
• Initial or secondary public offering
  
• Financial restructuring

A thorough investment review process, combined with active participation at the Board level, a commitment to aligning stakeholder interests, and an ability to generate and realize value have resulted in superior investment performance.