WesternOne Equity Income Fund is an unincorporated, open-ended, trust governed by the laws of the Province of British Columbia. It was created to indirectly acquire and hold all of the LP Units of the Partnership and all of the outstanding shares of WesternOne Equity GP.
Business of WesternOne Equity
WesternOne Equity has been formed to seek out and to acquire predominantly privately-owned small and medium sized businesses, located primarily in Western Canada, in order to generate stable distributions to Unitholders as well as overall capital appreciation.
WesternOne Equity will grow through:
- accretive acquisitions of businesses that meet its target acquisition criteria (see Acquisition Criteria);
- organic growth; and
- complementary acquisitions.
WesternOne Equity will seek acquisitions in a variety of industries including, but not limited to:
- infrastructure and construction;
- logistics and distribution;
- outsourcing;
- manufacturing;
- financial services; and
- businesses operating in markets with the potential for strong demographic growth.
WesternOne Equity will not invest in real estate (other than when it is a part of the business operations), technology or start-up ventures.
The ultimate selection of acquisitions will be prioritized by WesternOne Equity’s ability to generate value-added returns to its Unitholders. To achieve these returns the Fund will operate in much the same fashion as successful private equity firms with the exception of the high level of debt such groups typically place on their businesses, which can limit growth and create undue risk. WesternOne Equity’s returns will instead be derived from growth and operating improvements, rather than excessive financial leverage. When selecting acquisition targets, the Fund will look for candidates who meet its acquisition criteria of:
- Western Canada location;
- history of stable cash flows;
- strong growth potential, both internally and through add-on acquisitions;
- strong market share position;
- committed management team;
- EBITDA of between $3 million and $10 million;
- privately owned businesses; and
- accretive to Unitholders.
WesternOne Equity’s business strategy allows the management of each acquired company to control the day-to-day activities of the company while the Fund oversees the strategic, investment and capital allocation decisions for the business. Since WesternOne Equity is acquiring businesses with an established history of growth and profitability, it believes that the existing management is well suited to continue this growth going forward.
WesternOne Equity has a strong executive team including management, directors and trustees, with a breadth of experience in corporate finance, private equity and asset management. The team has well-established connections in the Western Canadian marketplace, with ties to business owners in a variety of sectors.
The portfolio businesses will have a geographic focus primarily in the Western Canadian provinces of British Columbia, Alberta and Saskatchewan, where WesternOne Equity’s extensive network of relationships and geographic proximity will allow it to be the most effective in sourcing new acquisitions and in working with businesses post acquisition.
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