CIBC Merchant Banking
Direct Investments
Since 1989, the investment team's responsive, flexible and creative approach to investing has resulted in value creation for our partners and investee companies. We have the ability to offer creative, flexible and value-added capital solutions. The structure of our investments is dependent on the nature of the situation, but can span from subordinated debt to preferred equity.
Situation:
We invest in Canadian mid and late stage private or public companies to finance internal growth, acquisitions, management/leveraged buyouts, and recapitalizations. We also assist fundamentally strong companies undergoing financial restructurings (or requiring short-term liquidity). In certain cases our investments represent transitional capital providing investee companies with short-term funding for specific purposes.
Investment Horizon:
We have significant flexibility with respect to investment horizon. Depending on the needs of our partners and the nature of the investment, we generally target an investment horizon between 3 and 5 years. For transitional capital investments, such as bridge financing, a horizon of up to 24 months is typical.
Industry Focus:
We have the ability and expertise to deploy capital in virtually any industry. We are able to leverage CIBC's deep institutional knowledge base and resources to quickly become educated on a particular sector.
Stage of the Company:
Investments are typically made in later stage, cash-flow positive businesses with defensible competitive positions.
Target Investment Size:
In general we seek to deploy $10 million to $20 million with the potential for a higher amount for transitional capital investments and for clubbed situations.
Management Friendly:
As financial investors we rely on management for day-to-day operations and participate, as required, in the strategic development of investee companies. This participation is often through maintaining strong relationships with management and other financial partners.
Value-add Partner:
We are able to leverage the broad experience of our investment team to support our partners with financial analysis, capital structuring and industry relationships. We are also able to deliver, as appropriate, the corporate lending, leveraged finance, investment banking and industry expertise of CIBC's wholesale banking business.