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Investment Criteria

Cobalt Capital targets investments of between $2 million and $5 million in growing private companies with the following characteristics:

  • Proven Track Record
    • completed at least three years in business
    • profitable, with EBITDA margins of at least 10% of sales or EBITDA in excess of $1 million
  • Strong Management Team
    • depth, talent, integrity, determination and strong discipline
    • committed to working in partnership with us to achieve growth
    • located in Canada or the US
  • Growth Potential
    • a well formulated plan for growth, either through further market penetration, or through expansion into other aligned areas
  • Sustainable Competitive Advantage
    • innovative products, proprietary technology, knowledge or processes, or
    • leadership position in a market with significant barriers to entry
  • Size and Scale
    • annual sales of at least $5 million and an operational scale that is a suitable platform for growth

Of course, because all businesses and sectors are different, and because markets and opportunities are dynamic, we recognize that there will be companies out there with compelling growth prospects, but which don’t meet one or more of the above criteria. For this reason, we will consider special situations falling outside these criteria, if they represent an opportunity with substantial promise.

Our investment focus is flexible, and we will invest across a broad range of industries, however, we will not invest in the following sectors:

  • real estate
  • primary resources (mining, oil & gas, forestry)
  • public companies
  • start ups

We are also flexible in terms of the structure of our investments and our time horizon. In all cases, we try to align these with the needs of the companies we are investing in. We will invest in equity (common or preferred shares) or subordinated debt, according to which structure best fits the company’s growth objectives. We are also comfortable with either majority or minority ownership positions, again, subject to the needs of the particular company.

The following are examples of specific investment situations where Cobalt Capital could be the preferred financing and growth-support solution:

  • Ownership/shareholder succession
  • Expansion capital
  • Acquisition financing
  • Management buy out, or buy in
  • Divisional spin off
  • Recapitalization



Cobalt Capital Inc. is a management company providing management services to Cobalt Capital Partners, L.P. in respect of its investing activities. The officers of Cobalt Capital Inc. are also partners of Cobalt Capital Partners, L.P. and its general partner, Cobalt Capital Management GP, L.P.