Ontario – Toronto GTA – Downtown Toronto
Corporation
www.quorum.ca
Ontario
Toronto GTA
Downtown Toronto
Corporation
active
The Quorum Group, is a 19 year old strategic-sector private equity firm headquartered in North America, which has achieved more than a 20 per cent. IRR (net of management fees and carried interest) track record since inception. Concentrating on a narrow range of vertical industries, such as oil and gas and telecommunications, the Quorum Group takes a significant investment position in its hand-picked small and medium sized vertical sector investees. Thereafter it works pro-actively with those investees to scale their proprietary technology in a way that is highly strategic to its vertical market customers, many of which become the ultimate acquirer of those key supplier investees.
The Quorum Group€™s investment strategy is in essence to emulate a business development arm of industry majors in the relevant sector seeking strategic or market advantages through the use of proprietary technology. This technology is developed by innovative small and medium sized enterprises that scale the product set to the point of hand-off to the industry major. By definition therefore, the Quorum Group does not invest in technology that appeals to consumers or mass markets, and it actively finds its investees (many of whom were not actively seeking capital when approached) rather than waiting to be approached or participating in auctions. The Quorum Group knows who the likely acquirers of these companies are before it makes the investment. Because vertical markets tend to be global, the Quorum Group€™s investees have an international client base disproportionate to the size of the investee at the time of investment (which is generally when the investee€™s sales are between US$5 million and US$25 million).
The Quorum Group is privately held, with the significant majority interest held by the working partners, all of whom work in an interdisciplinary way as opposed to the more traditional model of a group of investment officers each having responsibility for the individual investments within the overall portfolio of the investment firm. By contrast, every principal within the Quorum Group interacts with each investee from their disciplinary perspective, such as industry, operational, financial, strategic, technological etc. The approach of the Quorum Group is very hands-on, although specifically not to compete with management but rather to provide as wide a range of support as possible in enabling the investee to grow.
The Quorum Group was established in Toronto in 1987, and the team of principals has remained in place under the same leadership during this period, with further principals joining as the business has developed. Since 1987, it has had operations as needed to support its investments in such key strategic cities as New York, Calgary, Singapore, Hong Kong and, most recently, London. Over US$ 400 million of private equity and US$300 million of property investments have been managed, in all cases without the use of leverage. The Quorum Group€™s strategy is a growth strategy with a strategic sector bias, delivering returns from investee companies within 5 years of the investment being made. The Quorum Group has a pro-active style of investing, including investee selection and an emphasis on capital preservation through its now mandatory investment structure, the convertible secured debenture that drives: - preservation of principal;
- a 5 year €œlong option€? built into the debenture conversion price; and
- a single-digit, interest only yield that preserves net asset value without making the terms of investment too expensive for the investees.
Country of Ownership: Canada
Exporting: No
Primary Industry (NAICS): 523910 - Miscellaneous Intermediation
Primary Business Activity: Services
Number of Employees: 30
Services:
Venture capital service
Atkey Ronald G.
Atkinson Edward
Dole Richard
Dorosz Wanda M.
Dorosz Wanda
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Profile ID: LFCA-COD-O-851