Skyward Equity Partners (“Skyward” or the “Fund”) is a new private equity fund focused on acquiring niche industrial companies in Western Canada. The Fund seeks to acquire small-medium-sized metal machining, processing, fabrication, niche manufacturing, and industrial services businesses with EBITDA ranging between $0.5 million – $5 million.
Skyward will initially focus on opportunities in Western Canada 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 (sale) to a strategic competitor or to another private equity firm.
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 valuations, with the intent of exiting the improved and larger portfolio at a higher, middle-market valuation.
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 to individual companies and unlock potential synergies; and
-Create scale through consolidation that Management believes will provide outsized returns for investors.