Equicapita Update - Pensions Seeking Direct Investments with Longer Durations than Traditional PE Funds Can Provide

Calgary, Canada, October 28, 2014 --(PR.com)-- A recent Wall Street Journal article highlighted an interesting trend in pension plan investing. Plans such as the Canada Pension Plan Investment Board are moving to do more direct acquisitions and/or partnerships with PE firms, to buy and hold companies for longer than the typical five to ten year investment period found in traditional PE fund structures.

Stephen Johnston, a Director of Equicapita, stated, “We view this trend of larger pensions directly acquiring companies as investments in a positive light. Our strategy is to buy and hold a diversified portfolio of SMEs with stable cash flow and long operating histories. The SME market is extremely difficult for large institutional players to access given deal size and some of the unique challenges surrounding deal flow in this market. We believe a portfolio such as the one Equicapita has been building will be highly attractive to investors such as CPP. Like most pension plans, Equicapita has a multi-decade investment horizon so our approach is much more aligned with their duration outlook and requirements.”

Director Mike Cook added “Equicapita is a long-term, custodial investor. We seek to acquire stable, cash-generative businesses with solid operating track records and once we have found an attractive businesses we typically want to hold it indefinitely.”

Equicapita is a private equity buyout fund based in Calgary, Alberta. The fund is focused on acquiring private, western Canadian businesses with enterprise values ranging from $5 million to $20 million. The fund is an RRSP eligible investment vehicle that streams the cash flow from private operating companies to its investors on a priority basis.

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