Two Seasoned Execs.
One Operating Model.
Built to Compound.
The Case for
Parity Capital
Canada’s SME landscape is facing an unprecedented succession crisis as the “Grey Wave” of retiring founders crests. Over 75% of business owners plan to exit by 2035, yet fewer than 10% have a formal plan, creating a unique window to acquire high-quality enterprises at attractive entry multiples.
750,000+
SME owners planning to exit by 2035
$1 Trillion+
In business value transferring hands
< 10%
Have a formal succession plan today
Why Now:
• Peak boomer exit wave: 2025–2035
• No dominant operator-acquirer in Canadian SME space
• Interest rate normalization improving deal economics
The Search Fund Advantage:
• Two operators: accelerate and deepen value creation
• Increase multiple expansion and compounding growth.
• Principals, not advisors — skin in the game from day one
25%
+
Target IRR
3-5x
to 7-9x
Target Multiple Gap
$3M - $12M
Target EV Range
5 - 7
Years
Typical Hold Period
How We Create and Capture Value
Multiple
Arbitrage
Acquire at SME multiples: 3–5x EBITDA. Exit at mid-market platform multiples: 7–9x. Professional management closes the valuation gap without reliance on market timing or leverage.
Growth
Acceleration
Sue's mid-market organic growth playbook: AI-enabled efficiency & revenue acceleration. Proprietary sourcing: direct-to-owner, avoiding auction premiums. Digital transformation in every thesis.
Operational
Alpha
CEO/COO model: executive team deployed day one. Jared's proven sales playbook.
A culture-first approach mitigates post-close risks while driving superior shareholder returns.
How to Invest
- Acquisition Equity: co-invest at close alongside principals
- Principal equity at risk — full investor alignment
- Informed by the Search Fund model (30+ year track record)
The Investment Opportunity
Parity Capital is self-funded through the search phase. When a target is identified, investors co-invest directly alongside principals, ensuring full alignment with real capital at risk from day one.
Returns & Exit
- 25%+ IRR through underlining value creation
- 2.5–4.0x MOIC targeted return profile
- Preferred return structures for partners
- Exit via strategic sale or recapitalization
"Our equity is on the line. We win when you win."
Back the Operators. Own the Upside.
To explore the Parity Capital investment strategy, we welcome a confidential conversation.
www.paritycapital.ca | info@paritycapital.ca
For accredited investors only. This information does not constitute an offer to sell or a solicitation of an offer to buy securities.