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Private Equity

Dancap allocates 35% to 45% of its overall portfolio to Private Equity investments through third party funds, co-investments, and direct investments.

The Dancap Family Investment Office has a long history of investing in private equity funds, and our objective is to establish long-term relationships with third party managers across multiple funds. Through our experience, we have developed a high degree of comfort with the long-term nature of these investments and look to partner with managers who can deliver superior net returns that reflect the illiquidity of the investments.

Our private equity funds focus on many strategies including: buyout funds (our main focus), secondary funds, growth equity, infrastructure, distressed, and emerging markets. We tend to avoid early stage venture funds and funds that are highly correlated to the commodity cycle. Generally speaking, we don’t invest in first or second time funds and wait until there is a verifiable track record with a history of exited investments.

Dancap seeks to invest in managers that have worked together and have a demonstrated, consistent track record of success that is reflected in their ability to acquire, manage and exit companies.

Dancap expects to pay market competitive fees, and expects to receive transparent information from managers such that we can conduct our comprehensive diligence. Once invested, we expect full access to information from the fund manager or companies we are invested in through regular (minimum quarterly) reporting and calls with managers as required.

Dancap is interested in individual investment opportunities from existing mangers and new ones with whom we would like to build a long-term relationship with. In all circumstances, Dancap expects to have complete access and transparency to due diligence materials and the investment team in order to properly assess the opportunity. If necessary, we will sign a Non-Disclosure Agreement (NDA).

Our participation in an individual private investment is driven by the company’s history and outlook and the fund manager’s experience and ability to execute their investment thesis. We would also look at the macro environment and competitive landscape of the underlying company’s industry or sector to ensure that all potential risks are taken into account Our typical check size for direct investments is between US $1M – $5M.

Our Private Equity Minimum Return Targets Net of Fees, Deductions, and Non-Recoverable Foreign Taxes

15%

Net IRR

2.0x

Net Multiple

1st & 2nd

Quartile Manager Rankings

Our Private Equity Criteria

For an overview of our investment criteria, please select from one of the below

Our investment parameters for Private Equity fund investments is summarized below:

  • Dancap prefers funds focused on US mid-market buyout for control strategies
  • Geographically, Dancap is global, but tends to focus on private equity fund managers that invest in developed markets
  • We tend to avoid mega-sized funds and target funds raising US $500 million - $2 billion
  • Dancap invests in funds that have generated top quartile performance across multiple funds
  • Fund managers that will provide Dancap with co-investment opportunities
  • Dancap seeks to allocate up to US$10 million in an individual fund depending on Dancap’s relationship and experience with the fund manager

Our investment parameters for Private Equity CO & direct investments is summarized below:

  • Companies with minimum current revenue of $10M and a history of profitability for 3 years or more
  • Established management team with a demonstrated track record
  • Companies with a diversified customer and supplier base
  • Businesses with operating headquarters located in North America
  • Companies that have a proven product or service with demonstrable market demand
  • Minimal sensitivity to the economic cycle
  • Fundamentally sound business plan that supports growth

Do you meet the above criteria? Get in touch.

Contact Us

View Our Private Equity Portfolio

Driven by strong business relationships, Dancap’s private equity portfolio includes over 80 investments, with interests around the globe spanning a wide range of industries.

View our Private Equity Portfolio