Strategy
Growth Capital Investing
Investing in Canada’s Premier Pre-IPO Companies
Strategy
First Tracks Capital invests in small to medium size enterprises (SMEs) who are at an inflection point, where capital is required to enhance operations and accelerate growth. We consider a platform of companies operating with negative cashflows to $5M EBITDA within one of the five industry sectors; consumer goods, financial services, industrials, manufacturing and technology.
First Tracks selects investments based on specific criteria
- In the past it has been difficult for investors to access attractive or undervalued late-stage private companies which have significant growth potential.
- The opportunity in growth equity investments continue to represent approximately $1.5 billion of all private equity transactions in Canada.
- There is a significant opportunity for First Tracks Capital to participate in SME funding, as there is a decline in capital available to this market.
The Process
The overall performance of the First Tracks portfolio is built on the
accumulated success of the sum of its parts.
1
Planning
is Essential
Planning is essential in executing deal flow that creates shareholder value. The investment committee at First Tracks Capital rely on a well-defined set of criteria for selecting and closing investments in an expeditious manner.
2
Our Discovery
We assess the strength of the products and services that drive profits and their combined capability to support our target for growth. Regardless of whether the company is negative cashflow or EBITDA positive, our analysis will discover the companies’ ability to secure a competitive advantage in the future.
3
Staying the Course
Vetting the right target companies requires staying the course. At First Tracks we examine each potential investment paying close attention to management and their ability to adapt a clear, well defined path to value creation.
The Exit
At First Tracks Capital our exit strategy is designed to enhance the performance of our investments and is the primary consideration of any investment we make.
Our ability to exit is based on conditions, which include the readiness of the senior management team, the company’s market share and financial strength. Once our metrics align with these conditions, we will deploy one of the following options with the goal to exit, setting up new investors to continue to create value for the company:
Strategic Acquisition
- Sale to a suitable company
Initial Public Offering (IPO)
- Contingent on the success of the company’s ability
to support a go-public transaction
Share repurchase
- The company buys back the investment from First Tracks Capital
Contact Us
First Tracks Capital Inc
276 King Street West, Suite 203
Toronto, ON M5V 1J2
