Investments In Focus
Skyward Equity Partners
Product Overview
Skyward Equity Partners (“Skyward”) is a private equity fund focused on acquiring niche industrial companies in Western Canada. Some examples include, but are not limited to, companies that focus on metal processing and fabrication, custom fabrication of self-framing metal structures, manufacturing and installing metal buildings, servicing and maintaining rotating industrial equipment, providing pressure welding and other metal welding services, and manufacturing components for energy and infrastructure applications.
Skyward will initially focus on acquiring small-medium-sized enterprises in Western Canada with EBITDA ranging between $0.5 million – $5 million and will utilize the cash flow of its acquired businesses to support distributions to investors. Each company within the portfolio is strategically purchased for an eventual exit to a strategic competitor or to another private equity firm.
Since its inception in November 2022, Skyward has acquired three companies and continues to fill its pipeline of acquisition targets.
Investment Thesis
Skyward’s investment objective is to create a portfolio of niche industrial companies across Canada that provides investors with a stable return (semi-annual distribution) and strong upside potential (total return target of 21-25%).
Skyward’s strategy is to acquire smaller-sized companies, which tend to transact at lower valuation multiples, with the intent of exiting the improved and larger portfolio at a higher valuation multiple.
More specifically, Skyward will:
- Source opportunities in niche segments of the market that are inefficient and impractical for institutional investors to access;
- Acquire companies at favourable valuations;
- Aim to create value through improvements and by unlocking synergies; and
- Create scale through consolidation that Management believes will provide outsized returns for investors.
Team
Skyward is led by Darren Krissie (Founder and CEO), a seasoned executive with significant experience in the industrial sector. Darren previously owned and operated GT Metal Products, a metal services and machining company in Edmonton that he acquired in 2012. Darren also has prior experience as a senior executive (Chief Financial Officer and Executive Vice President) with Planet Organic Health Corp., a retail grocery business that was publicly traded on the TSX Venture Exchange. Under Darren’s leadership, Planet Organic grew to over $100 million in sales and was involved in several mergers and acquisitions transactions.
Darren is supported by Dave Lemoine, VP of Business Development and Integration, and Jennifer Fernets, Human Resources and Business Manager. Dave has 30+ years of experience and a proven track record of successfully leading, transforming, integrating, and restructuring regional businesses. Jennifer has 20+ years of experience in office and organizational management across several industries such as oil and gas, professional services, and television/media.
Offering Terms
(Skyward Equity Partners LP & Skyward Equity Partners Trust – Series B Units)
| Maximum Offering | Up to $10,000,000 | ||||
| Investment Objective |
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| Distributions(1) | Management is targeting 5.0% cash distribution per annum, payable semi-annually | ||||
| Management Fee | 2.0% | ||||
| Hurdle Rate | 8.0% per annum | ||||
| Profit Split | LP: 80% / FP: 20% | ||||
| Time Horizon | Five years after the first close, with the potential of two 12-month extensions | ||||
| Target Rate of Return(1) | Target total return is 21% to 25% | ||||
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