INVESTMENT CRITERIA

We are principally equity investors seeking opportunities to participate in situations where expansion or transition capital is required.

Expansion capital provides the financing needed to accelerate a growth strategy through augmenting product or resource development, building new facilities and investing in sales and marketing to target new markets, applications, regions or strategic acquisitions.

Transition capital is focused on family-owned businesses that need assistance with inter-generational transfers, industry consolidations or where an entrepreneur seeks an exit strategy including bridge to public markets.

Key elements of our investment profile include:

Size

We typically look to invest between $20 and $75 million of our capital in any one portfolio company, enabling us to support long-term growth. However, we will consider larger positions with unique opportunities as well as smaller positions where potential for additional investments exist.

Ownership

We support management teams and a majority position is not essential to us. However we typically require Board representation to participate in governance and strategic planning, allowing our investees to leverage the considerable attributes we bring to the relationship.

Strong Management

We look for managers with proven track records of developing and building businesses, coupled with a strategy and a vision of their company into the future. They must hold themselves to the highest ethical standards in governance, stewardship and community responsibility.

Canadian

Although we do have the capability to invest in U.S. companies our principal focus is on the Canadian marketplace.

Alignment of Interests

Management having ownership and personally significant capital at risk is fundamental to our approach and to alignment of interests. As a result, our management team is itself collectively a significant investor in our fund.

True Growth Opportunities

We pursue investments in companies with meaningful competitive advantages, exciting technology platforms, opportunity to displace incumbents in attractive industries or other attributes indicative of growth opportunities. We look for partners where the underlying fundamentals are positive generators for return, rather than situations where aggressive structuring, financial engineering or leverage is required to create value in our investment.

Industry Focus

We have few restrictions in the types of industries we will invest in. However, our investment criteria preclude us from investing in real estate opportunities.

Established Enterprises

At Richardson Capital we look to find opportunities to invest alongside management teams who run established and growing companies. We are a later-stage investor rather than a venture capital or angel investor funding start-ups or business plans.