Founded in 2016, Fengate Private Equity is a Toronto-based private equity platform focused on providing growth capital to support the ambitions of North American entrepreneurs and operators. We seek partnership opportunities in the middle market across the business services, healthcare, and information technology industries.
In Realized Value Created
On Realized Investments to Date
Average Revenue CAGR*
Average EBITDA CAGR*
*for current growth portfolio holdings
Every partnership is unique; however, all strong partnerships share common characteristics including being communicative, accessible, adaptable, and supportive. Establishing strong entrepreneurial partnerships is top priority as it allows all of our resources to be focused on driving the intended outcomes. We believe strong partnerships are rooted in the following core values: Trust, Transparency, Alignment and Agility.
TRUST
TRANSPARENCY
ALIGNMENT
AGILITY
We seek to identify scalable business platforms led by high-quality entrepreneurs and management teams in the expansionary stage of their business. Developed to accelerate the growth trajectory of our partners, our Transformative Capital investment approach is to work closely with ambitious operators, providing them with the necessary capital, resources and strategic guidance to elevate and cause a long and lasting positive change in their business. We define Transformative Capital as the intersection of:
Financial Capital:
We develop a bespoke solution tailored to the growth and corresponding capital needs of each specific business.
Human Capital:
We employ an operator-centric portfolio management model and are hands-on investors that are highly engaged in our portfolio companies beyond monthly reports and quarterly board meetings.
Strategic Capital:
We leverage the breadth and depth of the Fengate Asset Management platform to provide unique market access, strategic relationships, and origination opportunities to help drive business transformation.
in Realized Value Created
Average Revenue CAGR+
Entrepreneurship is a scarce resource. We recognize the challenges that entrepreneurs face in driving growth, and the tenacity and agility required to capitalize on growth opportunities. Our operator-centric partnership approach, combined with our Fengate playbook, provides the foresight and adaptability to support our entrepreneurial partners navigate the challenges and opportunities presented by growth.
Our successful partnerships to date have created $2.1B in total realized value, and on these investments Fengate has achieved a 3.0x+ multiple on invested capital. Our current growth portfolio holdings have seen average compounded annual growth rates of 33.3 percent on revenue and 26.5 percent on EBITDA.
Proactively Identify Sectors of Interest
Proactively identify growth sectors of interest consistent with our target investment profile.
Evaluate attractive sectors based on growth potential and drive, secular tailwinds, unit economics, competitive landscape, and regulatory environment.
Develop preliminary sector thesis.
Network Mining and Knowledge Expansion
Leverage both our external and broader Fengate network to establish relationships with leading business platforms and entrepreneurs.
A strong network helps us refine our industry thesis, enhance industry knowledge, and develop strong relationships with potential partners in advance of a transaction opportunity.
Partnership Formation
Seek industry leading entrepreneurs with a clearly articulated strategy and vision to grow.
Partner with scalable business platforms or industry leaders to invest in or build a business that benefits from both organic and inorganic growth opportunities, an attractive value proposition, and compelling unit economics.
In collaboration with our entrepreneurial partners, develop a clear investment thesis and road map for success rooted in a strong alignment of interest.
Growth Realization
Drive accretive growth through our Transformative Capital investment approach.
Leverage our Fengate Playbook, resource and advisor networks, to invest ahead of growth opportunities assuming an active but supportive role in our portfolio investments.
Support our entrepreneurs to build nimble, yet resilient enterprises, with the objective of maximizing value for all stakeholders.
ENVIRONMENTAL
SUSTAINABILITYSOCIAL
RESPONSIBILITYCORPORATE
GOVERNANCE
Dr. Douglas GraceMedical Director, GraceMedFengate have been great partners to our team at GraceMed. They have integrated well with our team quickly and have helped augment our financial and deal making capabilities. As a company that focuses on our patients and their outcomes, our choice of a financial partner was very important. Fengate’s support and company culture have fit incredibly well with our entrepreneurial and rapidly growing business. Our partnership has been a game changer for GraceMed, and we highly recommend them to rapidly growing businesses that are looking for a team that brings not only financial strength but believes in true partnerships.
Ken SweeneyChief Financial Officer, York1We are impressed with Fengate's investment approach because it gave us the resources we needed to meet our strategic growth plan and empowered us to deliver an expanded service offering to our customer base.
Todd ColemanFounder, President and CEO, eStruxture Data CentersWhen it to comes to the Fengate partnership, we knew right from the beginning that we would be a great fit not only from a vision and strategy perspective, but from a relationship, and cultural one, as well. Five years into this relationship, we are proud to say that we have grown into the largest privately-held data center platform in Canada.
