Sol Algranti, CEO, and Brian Hunter, President, are pleased to announce the formation of NorthSpring Capital Partners Inc. and The Management Buyout Fund.
NorthSpring Capital Partners Inc. (“NCP”) is a private equity fund formed by an accomplished group of business executives and entrepreneurs, which co-invests with motivated employees seeking to complete a management buyout (“MBO”) of the business they presently manage. Our goal is to turn managers into owners.
NCP’s preferred market is profitable manufacturing, processing, wholesale, and distribution businesses located within two hour’s drive of Toronto, Ontario. We invest between $200,000 and $1,000,000 of patient equity capital or subordinated debt to assist managers to complete an MBO. We expect management to demonstrate their commitment to the business by investing a significant amount towards the purchase.
NCP is more than just a financial partner. We bring significant knowledge and experience to help clients to grow their businesses. We are associated with Algranti Group of Companies, comprising world class and award winning businesses in a diverse array of activities from high tech tool development for the plastics industry, plastics manufacturing facilities, a sales and marketing company and business consulting services.
NCP strives to build long-term partnerships where our experience and resources will significantly contribute to the growth and success of the companies and management teams we invest in. Our preferred exit strategy is to sell our equity to management within a five-year period so that the management team can own 100% of the business.
With as many as 50% of small and medium sized businesses expected to change ownership in the next ten years, we believe it is critical to the success of the Canadian economy that businesses have a ready source of capital to fund the transition of ownership into new hands. The managers of these businesses are often the best choice for succession.
We know from our own years of experience in buying and selling businesses that there are numerous challenges to completing a successful MBO. We encourage managers to contact us early in the process so that we may assist them with deal structuring, negotiation strategy, valuation, and arranging other sources of financing. We will also participate in management buyins (“MBI”) wherein an experienced external manager or management team is sourced to acquire the business.
For further information, please contact:
Brian Hunter, President at 519-721-7144 or
brian@northspringcapitalpartners.com