ONCAP approaches the private equity market as a long-term owner of businesses, rather than as a portfolio manager focused on shorter term investment results.
ONCAP focuses on strategic organic and acquisition growth opportunities as the primary driver for the creation of shareholder value. The level of financial leverage used by each operating company will be determined by the cash flow characteristics and the investment thesis for the business. ONCAP will not adopt a capital structure that it believes could inhibit growth.
ONCAP places a very high level of importance on developing a successful partnership with the management team at each of our operating companies. This partnership has two primary elements. First, we strongly encourage each member of the senior management team to invest personal capital in the business. This provides an alignment of interests with ONCAP as owners and gives them an opportunity to create wealth by building shareholder value. Second, ONCAP works very closely with senior management to develop and execute an investment thesis targeted at building significant shareholder value.
ONCAP is not involved in the day-to-day operations of its businesses but instead focuses on adding value in areas such as add-on acquisitions, financial structuring, strategic planning, improving financial and operating performance measurement and identifying and attracting experienced executives to serve as value added advisors to the business.
- Access to the full resources and network of Onex Corporation. Onex is one of the oldest and most successful private equity firms and our largest investor. ONCAP is supported by finance, accounting, tax, legal, investor relations, and information technology professionals at Onex.
- ONCAP makes fewer investments. With only 32 investments since inception in 2000, ONCAP is an owner of businesses and is focused on making every investment successful. ONCAP professionals make personal financial investments in every business we acquire.
- Longer term investment horizon. ONCAP is focused on earning a high multiple of capital over a long-term period as opposed to shorter term internal rate of return.
- Appropriate capital structures. As a long-term investor, ONCAP ensures the capital structure is consistent with the investment thesis developed in conjunction with management and generally uses less leverage than market is willing to provide.
- True North American focus. With offices and presence in both Canada and the U.S., ONCAP invests in North American headquartered businesses while leveraging international relationships and experience.
- Active partnership with management post investment. ONCAP believes that a key competitive advantage is its ongoing active strategic involvement with the management teams of its operating companies.