Niche fund has produced excellent returns over the last 20 years by investing in private small and medium-sized owner-managed Canadian businesses
TORONTO, Sept. 27, 2018 /CNW/ - Argosy Partners Ltd., a Toronto-based private equity firm, today announced it will be raising Shotgun Fund IV.
Since its inception in 1999, The Shotgun Fund has been successful in generating excellent long-term returns by providing an equity solution for the owner-managers of private, small and medium-sized Canadian businesses involved in shareholder disputes, or who simply require shareholder liquidity quickly and quietly.
The Shotgun Clause, frequently found in private company agreements, is often abused.
"That's where we come in," says Richard Reid, General Partner of The Shotgun Fund. "We level the playing field. Our focus has always been on investing in small and medium sized businesses by partnering with owner managers. Surprisingly, it's still a largely overlooked market."
Argosy's focus has paid off substantially. The company has just wound up Shotgun Fund 1, having recently returned almost six times its original capital to its investors over 18 years, for an annual internal rate of return of more than 13 per cent.
Sale of Logistik Unicorp Inc.
The launch of Shotgun Fund IV, which is seeking up to $50-million in limited partnership commitments, follows the sale last month of Quebec-based Logistik Unicorp Inc. to private equity firm Wynnchurch Capital. Argosy, through Shotgun Fund 1, became an investor in Logistik Unicorp in late 2000 – the fund's second investment.
"Logistik Unicorp is a major success story, and we're proud to have played an important role in that success," says Reid. "The fund was conceived to operate exactly the way it did with Logistik Unicorp by providing a quick, discrete solution which led to a long-term relationship with the operator. Together, we created lots of value for everyone involved."
With the winding up of Shotgun Fund I (Shotgun Funds II and III were previously wound up, establishing Argosy as Canada's leader in this niche), it's on to Shotgun Fund IV.
"The interest from family offices and business people has been encouraging, says Larry Klar, a Partner at Argosy. "A lot of private equity firms in Canada have vacated the space for funding small and medium-sized companies. Not us. We're here to stay. This is what we've been doing for 20 years. It's our passion."
Argosy Partners Ltd. is a private equity firm based in Toronto. Argosy combines its capital with that of a number of successful entrepreneurs and institutional investors to deliver a range of effective financial solutions for small and medium-sized businesses. www.argosypartners.com
The Shotgun Fund is an Argosy Partners fund designed to meet the needs of significant shareholders facing shotgun situations. www.shotgunfund.com
SOURCE Argosy Partners Ltd.
For further information: Richard Reid, Managing Partner, The Shotgun Fund, [email protected], 416.367.3617